Blaine Rollins

361 Capital Weekly Research Briefing: The markets may look asleep...

August 15, 2016

The markets may look asleep…

Volumes show it. Sentiment reflects it. Major index trading ranges are very narrow. But don’t let the headlines lull you into drowsiness because while this leopard sleeps, its next meal is being planned. And even though portfolio managers may be invisible to the office this month, they are also planning moves today to help their clients and put them in a better spot to win their year-end performance bonuses. You can see the risk appetite increasing in the markets across nearly every asset class. The economic data looks fair and the Fed should remain on hold with global rates continuing to fall. Appetite for M&A, IPOs and secondaries looks healthy. And whether or not you like it, the U.S. Presidential race looks like a done deal. So safe assets are not likely going to be rewarded into year end, especially if you promised your pensioners that you will return 7-8%. If you are a billionaire and don’t mind missing an up move, then find a log and take a nap. But for the rest of us, it is time to fish and hunt.

Volumes are dead…

Last week was the slowest week of 2016.

Individual investor sentiment is also bored…

@bespokeinvest: Bullish sentiment has been below 40% for a record 41 straight weeks and 75 of last 76.

Even the fund flow data shows the lack of excitement in Equities. All the interest remains in Bonds…

( WSJ )

To read the 361 Capital Weekly Research Briefing in its entirety, please visit: http://hvst.co/2b1qAV5 


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