CLIENT TALKING POINTS
Europe
More than a light correction in the FTSE, which was one of the few major Global Equity Indexes that was DOWN last week; FTSE -0.8% this morning, breaking our immediate-term TRADE line of 7175 on what was a #StrongPound (+1.6% last week); European Yields up big too (Italian 10s +10bps to 2.32%); bearish on German Bunds.
Copper
Continues to signal #InflationAccelerating +0.1% this AM after another +2.5% week; in sharp contrast to Gold (down -1.4% last week - down small again this morning) – for the 1st time since 2013, the Fed isn’t hawkish enough.
Sectors
Being long Copper and Basic Materials (XLB +3.4% last week, leading S&P YTD Sector Returns) continues to be a straight forward High Beta style factor bet on #InflationAccelerating – we still like long Financials (XLF +2.2% last week) and Tech (XLK +1.9% last week) vs. Low Beta Shorts like Utilities (XLU -0.4% last week in an up tape).
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/29/17 | 31% | 18% | 15% | 10% | 0% | 26% |
| 1/30/17 | 34% | 17% | 14% | 11% | 0% | 24% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/29/17 | 31% | 55% | 45% | 30% | 0% | 79% |
| 1/30/17 | 34% | 52% | 42% | 33% | 0% | 73% |
THREE FOR THE ROAD
TWEET OF THE DAY
This week on HedgeyeTV (8 videos from our analysts) Subscribe to our YouTube channel: youtube.com/subscription_c…
@Hedgeye
QUOTE OF THE DAY
“You know, I don't only play for the record books.”
–Roger Federer
STAT OF THE DAY
Roger Federer has now won 18 Grand Slam's, 4 more than Pete Sampras.
