CLIENT TALKING POINTS
Dollar
Damn the data (ISM accelerated, again, with Prices Paid ripping a 69.0), when Janet isn’t allowed to see it and raise rates like she should have yesterday; maybe it takes a jobs report tomorrow like the ADP ramp we saw yesterday to rock her out of the nest; happy to see EUR/USD $1.08 – been waiting on that an Yen 112 to sell both.
JGB
Japanese Government Bond Yields continue to signal a bullish breakout on the long end (like German and US 10s have), with JGB 10yr up another +2bps to +0.10%; inflation accelerating from its deflationary lows, indeed.
Utes
Utilities (XLU) sacked for a -1.7% loss in the backfield yesterday, so the bond market and it’s US Equity market proxies do acknowledge the last 3 months NOV-JAN of US growth and inflation accelerating; great day to buy more Financials (XLF) and Industrials (XLI), keeping long-term bonds (TLT) and Utes (XLU) on the short side.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/1/17 | 22% | 21% | 17% | 15% | 0% | 25% |
| 2/2/17 | 22% | 22% | 18% | 12% | 0% | 26% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/1/17 | 22% | 64% | 52% | 45% | 0% | 76% |
| 2/2/17 | 22% | 67% | 55% | 36% | 0% | 79% |
THREE FOR THE ROAD
TWEET OF THE DAY
Trump Supreme Court pick Judge Gorsuch: 1. 'Solid conservative' 2. Will 'challenge government regulation' app.hedgeye.com/insights/56993
@Hedgeye
QUOTE OF THE DAY
“I never wanted to be famous. I only wanted to be great.”
–Ray Charles
STAT OF THE DAY
Since 2007, opposing teams are 3-140, making Kansas's Allen Fieldhouse one of the greatest home court winning %'s ever.