Stocks were basically flat over the past week. And looking further back, they’ve really gone nowhere over the last few months. In comparing stocks to bonds, stocks appear much more attractive, but only because bonds did so badly when interest rates recently rose. Rates over the past week fell back slightly, but not enough to raise the value of bonds. In a portfolio split between stocks and bonds, it appears time to overweight stocks.
Looking at the various asset classes, gold still looks really unattractive. Brazilian stocks are the only worse performer right now. European stocks have returned to positive momentum, slightly behind US large caps. Almost everything else is negative. The asset class with the best momentum currently is US small caps (IWM). I would own it, but I don’t like dealing with the currency exchange and I’m still happy with the momentum of MG.