US Equities: 7 February 2014

Following a very consistent rally in global stock markets since the March 2009 lows, the uptrend has accelerated higher over the past 12 months and is now starting to break down. Accelerations higher in stock markets are typically ending patterns, suggesting that the consistent uptrend is now at risk of breaking lower. Those that are following our model portfolio are well positioned with an allocation of 20% stocks, 50% bonds, 20% gold and 10% cash.