Weekly Macro Themes - Remain bullish small caps

TopdownCharts
11-23

This week I covered the following topics/ideas:

1. Gold 60/40: In comparing gold $Gold - main 2412(GCmain)$ vs bonds for the 40% of the 60/40 portfolio, the key takeaways are to diversify diversifiers and to diversify discerningly (be valuation-aware, don’t set and forget the 40).

2. US Housing: Valuation indicators remain near record highs for US residential property, this can resolve fast and painful, but may be more likely to resolve over a long-time through relative price stagnation.

3. Small Caps: Remain bullish small caps given attractive absolute and relative valuations, mixed-to-negative sentiment and flows, and potential sector skew benefits.

4. UK Equities: Both UK equities and the GBPUSD offer some attractiveness in (relative) value vs expensive US, but the broader picture is not particularly compelling at this point.

5. European Equities: Similarly, European equities and EURUSD boast cheap relative value vs US, but the technicals and wider setup do not currently look promising, on watch for potential breakdowns.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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