Monthly Asset Allocation Strategies: Market Analysis and Opportunities to Seize

The updated monthly asset allocation table is now available here.

The stock market continues to rally after the famous January effect observed last month. Most regions are now in a positive trend, however, in terms of valuations, there is a big gap.

In Switzerland the surge is spectacular, but at the risk of repeating myself the prices are in a very large majority totally irrelevant. Comparison is not reason, but I remember that in 1999-2000 we had already experienced extreme valuations with very strong surges. We know how that ended.

In Europe, on the other hand, it's becoming interesting, because we have simultaneously decent prices that are starting to pick up. The trend is not yet clear, but it's going in the right direction. Given the context linked to Brexit, I took the opportunity to separate Great Britain from the rest of the continent a little in advance. The indicators are exactly the same, for the moment. As these two regions are becoming interesting to invest in again, I'm going to run my screeners in the coming days to see if any opportunities arise there.

In the USA, on the other hand, the same fight as in Switzerland, a fairly marked trend, but dissuasive prices. Still to be avoided. Its Canadian neighbor, on the other hand, continues in the same vein as last month, with a trend that is even accelerating and valuations that are unfortunately starting to become a little expensive. I have started to take small positions on stocks that are still cheap.

Japan is not moving. Valuations are still incredible, but the trend does not want to go up. I still have several stocks in my portfolio that are holding up well, but I am impatient to see the whole market recover, because there will really be a good move to be made when it does.

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A new region is appearing in my allocation, Australia. It is one of the countries in the world with the best historical stock market returns along with Canada, the USA and Switzerland. The prices are like in Canada, quite expensive. In terms of the trend, it is a region for which it is difficult to establish. We must see the positive side, we only have to worry about the price. I will also run my screeners in the coming days to see if there are any affordable stocks there.

Last but not least in terms of stocks, emerging countries. Like last month, valuations are particularly affordable and the positive trend is quite well marked. I have started investing there and I intend to continue in the coming months.

For all other assets, no changes since last month. Still no long-term bonds, still invested in gold and real estate, and proud of it.

The target share of cash continues to fall, due to the return to favor of more and more stock markets. It is now targeted at 14%. I am still far from the mark, with 41% of liquidity, but I am not rushing, even if for the moment the Swiss market is beating me hands down. I have been in the turtle mindset for some time 😉


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