28 Key Asset Categories: How Do They Compare?

This table presents 336 data points that quantitatively compare 12 attributes of the price charts for 28 key asset categories that may be found in many portfolios. The categories include representation for domestic and foreign bonds, hybrid securities, domestic and foreign stocks, real assets, commodities and currencies.

The data provides a compact way to help develop an overall perspective on market performance and trends.

Data in the table first shows the ratio of the current 200-day simple moving average to its level 20 days ago and 200 days ago, as an indication of the short-term and long-term direction of the primary trend.

The data then shows the ratio of the current 100-day, 50-day, 25-day simple moving averages to their value 20 days ago, as an indication of the short-term direction of secondary trend indicators.

Next, the data shows the ratio of the price and the secondary trend indicators to the current primary trend.

Lastly, it shows the relative position of the price and the secondary trend levels to each other by showing the ratio of the price to the 25-day average, the ratio of the 25-day average to the 50-day average, and the ratio of the 50-day average to the 100-day average.

Those ratios that fall within +/- 3% (1.03 to 0.97) are shaded yellow to indicate relative stability or flatness. Those with variation greater than 3% are shaded pink or green.

Pink shading is for ratios less than 0.97, indicating a downward movement (or for relative positions indicating an adverse relationship).

Green shading is for ratios greater than 1.03, indicating an upward movement (or for relative positions indicating a favorable relationship).

Disclosure: We own some of the listed securities in some managed acccounts.

Comments

[Prudent Man...:]

"28 Key Assets"? Myopic sophistry!

Just one can bring down a house of cards.

Like most academic nonsense, irrelevant to the fact of economic life.

Jun 10 11:06 AM

[Richard Shaw:]

Prudent Man CFA: If you were a trend follower, you would not find the data to be nonsense, or irrelevant. There are other approaches as CFAs are taught to follow, but it is nonsense to call the data nonsense.

Jun 10 12:37 PM

[Prudent Man...:]

On Jun 10 12:37 PM Richard Shaw wrote:

> Prudent Man CFA: If you were a trend follower, you would not find
> the data to be nonsense, or irrelevant. There are other approaches
> as CFAs are taught to follow, but it is nonsense to call the data
> nonsense.

I have been successfully managing institutional portfolios successfully, including derivatives, for over fifty years, winning Lipper awards. I don't know your experience or care, but needing 28 eight indicators to confirm a decision to me is a sign of lack of confidence and hiding behind the numbers. I have colleagues who buy these printouts and manage billions and need a committed to make a decision. Investing is an art not science and those who don't realize this either end up teaching at some Ivy League diploma mill or drive cab.

I have probably been a CFA longer than you have lived and I would never higher anyone just because they were a PhD.d, MBA and/or CFA. The proof is in the pudding.

Have fun with your numbers! You get better info off of Yahoo Finance. Save your time and money. Never met a "trend follower" who survived more than a couple of years as they are broke by the time they realize the trend has changed.

Jun 10 03:30 PM

[Emerald:]

Arrogance and hubris are not engaging qualities for someone who places "CFA" after their name. As a self described options trader, you may not care about "trends", only the next thirty days or less. That's fine, but observing trends, combined with real world knowledge of interest rates, industry and politics have enabled many investors to make money or not lose their life savings. Many people do not have the time or skill to follow individual companies and use mutual funds or ETF's. Taking cheap shots at others weakens your opinion.

Jun 11 11:30 AM

[woodsey:]

Yeah, the proof is in the pudding.

Jun 11 11:54 AM

[Indexor:]

Hmmm..."Prudent Man CFA" is an options trader? That seems like a bit of a dichotomy in and of itself.

I agree that investing is more art and less science. And as Richard Shaw has provided for us once again, his version of art has painted a colorful canvas that many of us non-CFA's find extremely beneficial. While it may be void of continuously diminishing intrinsic values, I find it full of useful ideas, among a broad array of asset classes, that mere mortals might actually use to make money.

Thank you Mr. Shaw.

Jun 11 03:03 PM