The traditional portfolio allocation is 60% stocks and 40% bonds; and some analysts say never change this allocation no matter what. But bond prices are decreasing and equity prices increasing.
Some investors change allocations depending on market conditions–and we are changing allocations significantly away from the 60/40 ratio.
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The current market appears to be on the cusp of another 4-6% drop over the next few weeks.
Our analysis indicates that all style boxes, sectors, and world indices have positive momentum. Only the US dollar is negative at this time.
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