Flower Market, Nuremburg, Germany
Although the week started off with sharp declines in the prices of US equities we ended the week with a bounce and an ending only ~1% lower than last week’s close:
Prices are still sitting at the top of the downtrend channel and we will have wait to see whether we will see a breakout to the upside or a continuation of the downtrend.
In comparison with the performance of other asset classes we see that US Bonds were the strongest performing asset classes with positive returns and commodities continuing the weakness we have seen over the past 2 weeks:
How this performance is reflected in the Rutherford Portfolio can be seen below:
Recent returns are pretty much in line with those of the benchmark AOR fund despite the relatively high (35%) allocation to Cash:
Checking on current rankings and recommendations from the BHS model:
we see no Buy or Hold recommendations and not a lot of positive green signals anywhere other than for TLT. So let’s check the rotation graphs:
where we see the weakness in most asset classes and confirmation of relative strength in TLT. However, this is not translating into a Buy recommendation even from the rotation model:
Based on the above information I will be selling holdings in GLD and DBC in Tranche 5 (the focus of this week’s review) and, despite the fact that there are no Buy recommendations, rather than hold all proceeds in Cash I will be allocating 25% to TLT since the HA Charts are still looking reasonably positive:
David
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