CLIENT TALKING POINTS
GBP
After bouncing to the top-end of its immediate-term $1.21-1.24 risk range, the British Pound is straight back down at the low-end, -1.2% this morning on newsy headlines about Brexit – I’d buy those and keep using USD as your lead on GBP/USD entry/exit points as the bottoming process for GBP continues to manifest.
NASDAQ
No topping process, yet, for “valuation” bears – as US growth data accelerates, High Beta + Growth (Sales and EPS) style factors continue to pay off, in size; last week’s all-time closing high for Nasdaq of 5521 coincided with High Beta (as a style factor) taking on another +2.0% weekly return.
10YR
Yields, globally, lower this morning with European Yields having a “risk off” day (Italian 10yr -6bps to 1.90%); not much happening in the UST 10yr yield after popping from 2.34% to 2.42% on the jobs report; risk range bound is what I see there at 2.35-2.60% ahead of this week’s US econ data.
TOP 4 LONGS: USD (UUP), XOP, QQQ, Pound (FXB)
TOP 4 SHORTS: Gold (GLD), EUR/USD (FXE), Long-term Treasuries (TLT), Chinese Stocks (FXI)
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/8/17 | 33% | 18% | 10% | 11% | 0% | 28% |
| 1/9/17 | 39% | 15% | 9% | 10% | 0% | 27% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/8/17 | 33% | 55% | 30% | 33% | 0% | 85% |
| 1/9/17 | 39% | 45% | 27% | 30% | 0% | 82% |
THREE FOR THE ROAD
TWEET OF THE DAY
The BLS is 90% sure that the US economy added somewhere b/w 42,000 and 270,000 jobs in December. Wait, what? #NFP
QUOTE OF THE DAY
“Imagination has a great deal to do with winning.”
–Mike Krzyzewski
STAT OF THE DAY
On Friday, the BLS released its labor market report showing 156,000 new jobs were added in the month of December. But based on the way this data is collected, the U.S. economy may have added or subtracted an additional 114,000 jobs from that initial jobs estimate.
