TAARSS says prefer European and US equities in August
Deutsche Bank – Synthetic Equity & Index Strategy – Global
The Flow Whisperer – TAARSS says prefer European and US equities in August
11 August 2015 (22 pages/ 887 kb)
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Tactical Asset Allocation Relative Strength Signal (TAARSS) Monthly Update
Top recommendations for August: Europe, Japan, and US Consumer Staples equities, and US Treasuries.
Market review
Global equities and bonds ended up on the positive side on July. Global equities (ACWI) and US Bonds (AGG) rose by 0.82% and 0.86%, respectively; while Commodities (DBC) plunged by 12.61%
TAARSS rotation strategy monthly and quarterly performance review
Quarterly and monthly TAARSS strategies were mixed during July. Quarterly multi asset and monthly market rotations were the best TAARSS strategies.
Tactical positioning for August 2015 based on TAARSS
This month in global equity markets prefer Intl DM, and the US, while staying away from EM. Region wise prefer Europe and North America equities, while staying away from Latin America and Asia Pacific. In US equities we prefer large caps and small caps over mid caps. Sector wise we see support in Consumer Staples and Healthcare. In Intl DM countries prefer Japan and stay away from Canada. Within EM countries, we see weakness across the board especially in China and South East Asian countries such as Indonesia and Thailand. In Fixed Income trends suggest rates over credit; while within Commodities we see general weakness. See Figure 13 and Figure 14 for full allocation details for the month of August and Q3.