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Client Talking Points

Nasdaq

And what a run the Nasdaq has had, ramping to yet another all-time closing high (5666) after a USA #JobsAccelerating report on Friday; in fake news, mainstream media opted to whine about “wage growth” when 80% of non-supervisory workers in the US saw wage growth accelerate just inside of +3% (private payrolls).

Financials

They loved the jobs report (+1.64% NFP growth = best m/m rate of change acceleration in 23 months), ripping +2.0% on Friday (XLF) and my favorite big cap beta way to be long the group is Bank of America (BAC) which continues to provide timely buying opportunities ahead of growth and inflation data accelerating.

Copper

After correcting -2.7% last week, bounces +0.9% this morning and remains one of the obvious components of the #inflationaccelerating story that we should continue to see for at least the next 3 months; the Fed will be chasing these inflation reports as they’re currently too dovish.

Asset Allocation

CASH US EQUITIES INTL EQUITIES COMMODITIES FIXED INCOME INTL CURRENCIES
2/5/17 22% 22% 18% 12% 0% 26%
2/6/17 23% 22% 17% 12% 0% 26%

Asset Allocation as a % of Max Preferred Exposure

CASH US EQUITIES INTL EQUITIES COMMODITIES FIXED INCOME INTL CURRENCIES
2/5/17 22% 67% 55% 36% 0% 79%
2/6/17 23% 67% 52% 36% 0% 79%
The maximum preferred exposure for cash is 100%. The maximum preferred exposure for each of the other assets classes is 33%.

Three for the Road

TWEET OF THE DAY

Let's throw Plank $UAA a bone. His boy Brady killed it. Unfortunately Brady does not sell shoes and shirts. That's why NKE dumped him.

@HedgeyeRetail

QUOTE OF THE DAY

"I wasn't thinking much; I was thinking - we've just got to score the touchdown."  

–Tom Brady

STAT OF THE DAY

Tom Brady is the only QB with 5 Super Bowl wins.