Last week was a relatively dull week. Stocks ended the week basically flat. Bonds fell slightly. As such, stocks look more attractive than bonds. Interest rates have risen again. As I’ve mentioned before, much of that seems to be due to the fact that bonds are losing value, not necessarily that stocks are advancing.
Not much has changed in my asset rotation model, either. US stocks (IWM, SPY) have actually improved their momentum. They remain solidly at the forefront. European stocks (XIN) are next (but still less attractive than MG), followed by Canadian stocks (XIU). Real estate, as a sector, is very much out of favour.
So grab a book, find a beach and enjoy the summer. In Canada, it doesn’t last long. (In Calgary, it barely feels like summer.)