A Trend Reversal Ahead?
Mike Macdonald | Dec 11, 2014 01:25AM ET
The MSCI World Index continues to outperform the broad based Commodities Index, with prices rising in a steep trend. Warning signals continue to appear on the very overbought RSI, suggesting caution into following this sharp rally. Risk remains for a ‘bubble’, which, when corrected, will likely be swift and deep. With this in mind, we remain cautious of following this rally, and advise risk-averse investors to use any further relative equity strength to reduce equity exposure, and move towards a more neutral equity/commodity allocation.
Month-month investors are advised to monitor their exposure to equities, and to remain cautious of a swift trend reversal.
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