CLIENT TALKING POINTS
USD
3 straight up weeks for the USD gives it a +0.70 correlation in the last 120 days with the SP500 – we’re still bullish on USD and bearish on both the Euro and the Yen; #StrongDollar is what happens when USA’s in Quads 1 and 2.
UST 10YR
Down -10bps with Dollar Up, Stocks Up last week, so we're getting lots of questions on that – we think most of the move was driven by a drop in Global Yields (JGB, German, and Swiss 10s all down hard in the last week); catalyst for higher UST yields remains US growth and inflation accelerating data (jobs report this week).
Oil
WTI +0.8% to kick off the week up at $54.44/barrel with immediate-term upside in my risk range implying that Oil could finally see higher highs here; OVX (Oil Volatility) continues to break down = bearish TREND OVX is at 25.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/26/17 | 35% | 20% | 13% | 12% | 0% | 20% |
| 2/27/17 | 32% | 21% | 14% | 13% | 0% | 20% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/26/17 | 35% | 61% | 39% | 36% | 0% | 61% |
| 2/27/17 | 32% | 64% | 42% | 39% | 0% | 61% |
THREE FOR THE ROAD
TWEET OF THE DAY
This week in Hedgeye cartoons. Get our daily cartoon emailed for free: hedgeye.com/cartoon/email
@Hedgeye
QUOTE OF THE DAY
“Talent alone gets you nowhere. You really have to have the grit, and you gotta have a love for people.”
–Zac Brown
STAT OF THE DAY
Kurt Vonnegut wrote 14 novels, 3 short stories, 5 plays and 5 works of non-fiction.