Hello;
You have to understand, there are serious questions with her indicators.
She assigns a very heavy weighting to an Interest Rate indicator. When she made her still incorrect call in July, the Long Bond was around 7.15% - 7.25%. She saw this as a bad trending sign. Now the Long Bond is about 6.75%. So her indicator has turned around, quite sharply I might add.
She also assigns a serious weighting to Mutual Fund cash balances. It was dropping to 7% in July. It is now at approx. 8%, and from indications at Fidelity, Vanguard, Putnam and one other who I can't remember, the inflows are rising.
These 2 indicators have turned somewhat bullish, if not entirely bullish, yet she has not changed her call. I'm not a fan of hers.
However, there will be sectors of the market that will drop, and drop severly. The Semiconductor Industry got rocked over the past 6-12 months. I believe that there will be a rotation basis in the market, some sectors up while others are down, while most move slightly in either direction.
Just an opinion.
Later.
Mark |
