Page 1 of 1

Post-Trump Rally Rotation??

Posted: Thu Apr 13, 2017 6:42 am
by RKresearch
I haven't found news mentions of a post-Trump rally rotation from stocks into bonds but if you chart the F fund against the C fund since March 15 it sure looks like the C fund money is going into F.

I did find this on the CNN Fear And Greed site this morning.

"Bonds have outperformed stocks by 3.51 percentage points during the last 20 trading days. This is close to the weakest performance for stocks relative to bonds in the past two years and indicates investors are fleeing risky stocks for the safety of bonds."

Re: Post-Trump Rally Rotation??

Posted: Thu Apr 13, 2017 9:41 am
by Tomanyiron
May I add to this in a visual way? If you look at a ratio chart ($SPX:AGG) you can see this taking place.
Image
http://schrts.co/r0sJV7
On the main part of the chart, the red line is that ratio, which is C fund compared to the F fund.
The green line is the C fund by it’s self.
At the top is the RSI indicator changed to 18 (normal default is 14). A buy signal could be when there is a sudden up-spike near the 30-line. (Green circles with corresponding green vertical lines)
And at the bottom is the PMO indicator for a sell signal. (Red circles with corresponding red vertical lines)

Re: Post-Trump Rally Rotation??

Posted: Thu Apr 13, 2017 10:09 am
by RKresearch
Thanks Tomyanyiron for posting the comparison chart. I have not figured out how to paste in a chart from Google finance or from this sit itself, but what I'm seeing is C vs F funds since March 15 are nice mirror images which sent me looking for talk of stock rotation to bonds. Cramer on Mad Money had a big thing yesterday about what is limiting the bull market but didn't mention a flight to bonds.

Re: Post-Trump Rally Rotation??

Posted: Thu Apr 13, 2017 11:05 am
by cswift01
RKresearch wrote:Thanks Tomyanyiron for posting the comparison chart. I have not figured out how to paste in a chart from Google finance or from this sit itself, but what I'm seeing is C vs F funds since March 15 are nice mirror images which sent me looking for talk of stock rotation to bonds. Cramer on Mad Money had a big thing yesterday about what is limiting the bull market but didn't mention a flight to bonds.


Bogle suggests that returns on stocks will not go much beyond 4% for the next few years. I tend to agree.

http://www.marketwatch.com/story/jack-b ... 2017-04-13

Best,

Me