The Bulls Still Have The Edge, But The Margin Is Narrowing

Summary A review of several ETF-based market ratios continues to support the view that investors remain broadly constructive on the near-term outlook. A broad gauge of global asset allocation sentiment continues to favor a risk-on stance, based on the ratio of an aggressive allocation strategy (AOA) to its conservative counterpart (AOK). If the risk appetite continues to deteriorate in the bond market, the effects are likely to spill over into equities and broader asset-allocation strategies. ToucanStudios/E+ via Getty Images On paper, the list of risks hanging over the U.S. economy and financial markets is daunting. Presented with today’s concerns a few years ago, a rational investor might have concluded that trouble was brewing and that shifting portfolios toward This article was written by James Picerno 7.02K Followers Follow James Picerno is the director of analytics at The Milwaukee Co., a wealth manager that is the adviser to The Brinsmere Funds, a pair of global asset allocation ETFs. He also edits CapitalSpectator.com and The US Business Cycle Research Report (CapitalSpectator.com/premium-research). He is the author of three books, including "Quantitative Investment Portfolio Analytics In R: An Introduction To R For Modeling Portfolio Risk and Return." Previously he was a financial journalist at Bloomberg and before that at Dow Jones.