Equal and Opposite Signals

Thursday, October 24th, 2019   Categories: Emerging Markets, Equities, Government Bonds, Market Timing

Crossover for EM Equities and EM Bonds

The macro picture remains confused, so we are reduced to talking about signals which may appear in the near future. On present trends, we expect EM Equities to overtake their moving average and EM Bonds to drop below theirs. Both are measured relative to the equity and fixed income models as appropriate. At first, the switching opportunity would be for EM specialists, but it may develop wider significance.