The Riskalyze Report: Everyone ♥’s Stocks Again

November 27th – December 3rd

Josh here – well, it didn’t take much other than a spike in treasury yields and a 3% S&P 500 rally to convince us all that there’s a “new paradigm” now at hand and we’re all about to get laid. At least, that seems to be the prevailing sentiment these days in the investment markets. Allocations are being undertaken as though 4% GDP growth and rising rates to accompany that economic growth are a fait accompli. I’m not mad, just saying.

Riskalyze CIO Mike McDaniel tells us that “Advisor use of US Growth and US Equities ratcheted up big week over week with 8 of the top 10 winners falling into US equity category(s). Advisor use of SLV and XLU continued to decline week over week by over 7%.”

So, we’re buying the stuff that grows and selling the stuff that yields. Got it. Full speed ahead!

It’s also interesting to see Jeff Gundlach (DoubleLine Total Return) getting redeemed a bit, but this could have more to do with rebalancing – he’s largely gotten both the election and the post-election rate picture right, after all.

*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).