Bonds fell back slightly over the past week, while stocks made some progress. As a result, the narrow advantage the stocks enjoyed in momentum over bonds, has now improved somewhat. It appears to be a good time to invest in stocks, and to shift portfolio weightings to favour stocks.
Another indicator that stocks are poised to do well is the positive performance of US stocks. Small caps (IWM) have particularly good momentum, compared to other asset classes, with large caps (SPY) not too far behind. Most other asset classes are now neutral or slightly positive, with the notable exceptions of Canadian small caps and gold.
Over the coming week, I will continue to own Gilead (GILD-US), which has served me well. However, General Dynamics (GD) and Amgen (AMGN) both may warrant a look. In Canadian stocks, Agrium (AGU) looks attractive.