Follow the Powell Spread
Disclaimer: Your capital is at risk. This is not investment advice.
AAA: April Edition;
Equity markets are rallying but few have made annual rolling highs, indicating that the current situation is not the beginning of a new bull market. The moves are simply bear market rallies that could continue until the end of May before falling back later in the year.
Multiple indicators confirm that the US and global economy are hurtling towards a recession. Even the Fed’s preferred indicator is giving the same message. Investor sentiment remains very negative, and investors are piling into high-quality bonds. However, our Model suggests owning equities, as part of the continuing pain trade. Gold is a strong buy and diversifies the risks associated with this.
