Well, the positive action from gold appears to have been short-lived. I hate getting jerked out of positions by volatility, but change can come quick and I have to face up to reality. My asset momentum model shows Chinese stocks (FXI) far ahead of Canadian stocks and gold. Nothing else really looks attractive at all. And with bond yields rising, bonds are losing value.

With Canadian stocks looking reasonably good, I’m going back to owning MG (from the one disappointing week I spent owning IMG). The individual stock has better momentum than even the Chinese ETF.

Even if stocks don’t do very well over the coming few weeks, bonds look set to do even worse. I doubt they would offer much shelter.

Market Outlook September 9, 2013

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