August 2024 barometer update
There has been a rotation out of high growth US technology stocks into smaller cap and high growth non-technology stocks. As a consequence the FTSE is holding its position more strongly than the Nasdaq index which has slumped. In spite of this, the Sector Rotation Clock has remained at Mid Expansion in the cycle.
Here is the clock but with no change from last month:
To summarise the indicators:
The Barometer has reduced slightly to +1.
The Hi-Lo-Grometer is still in the amber zone. It is not safe to buy stocks.
The US Treasury Yield indicator has remained heavily inverted and has fallen beyond the -150 points zone. This is still an anomalous reading as far as I am concerned.
Once again the US Treasury Yield indicator is at odds with the positioning of the sector cycle. Which one is right? I’m betting on the latter.
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