This is one of those classic glass half full or half empty metaphors. The optimist uses this cliché to point out that no matter how bad things seem, there is hope down the line. The pessimist sees the headlight of an oncoming train rushing forward to crush the observer.

Since the Global Financial Crisis started, we have certainly seen our fair share of Express Trains coming through the tunnel. Despite calming assurances that we were almost clear of the worst parts of the recession, we have had to cope with property busts, toxic assets, higher than expected unemployment, sovereign debt crises, bailouts and contradictory signals of inflation and deflation.

But this time the light at the end of the tunnel may be of the positive variety. Although the ranking orders have not changed dramatically in most of our portfolios, we are starting to see more positive numbers lower down in the rankings for the first time since April of this year. Since the Fund King System looks to capture the medium term trend, the uptick suggests that strength is building in select asset classes. Given the relatively limited upside available in government bonds, we would not be surprised to see some ranking changes in the coming few weeks. Whether Gold and Silver can maintain their leading status will depend largely on how much panic we have left in the system (panic has not been in short supply over the past few years). This is a good time to pay attention to the direction the Fund King System is indicating because most asset classes have been fairly directionless for almost half a year.

Are their downside risks? Of course there are and if you want to give yourself a good scare, check out some of the hyperinflation articles that have been running on the ZeroHedge Blog. There have been a number of good articles on hyperinflation lately which correctly point out that hyperinflation is not the result of really strong inflation but rather a loss of faith in the currency. Therefore, a bit of deflation beforehand is no inoculation against subsequent bouts of hyperinflation. This is a serious topic which does not seem to be on the agenda in Washington, Brussels or Tokyo.

New Feature

In response to requests and hopefully in time to take advantage of slightly better market conditions, we are taking the wrapper off our SPDR Component Stock Ranking Engine. The Ranking Engine takes 15 ETFs from the SPDR series that represent different subsectors of the US Stock Markets. It ranks the component stocks at the end of each day and presents the tickers in order of their ranking. We are still working all the last bugs out so if you find an error, please let us know. This feature is available to Gold and Silver members.

SPDR Page

In the coming weeks we will show you several ways in which to use this function to help build a portfolio which should keep you invested in the strongest bits of the market at any given time.

Investment Website Reviews

We are also busy building up a library of website reviews. With all the choices available on the web, our goal is to provide a useful clutch of websites which can help inform your investment activities. Take a look at the Websource tab on the Fund King Website. Please feel free to leave a comment (positive, negative or otherwise) and please feel free to suggest other sites that we may have overlooked. If you see a review that you feel is useful, click the Facebook “like” button to share it with your friends on Facebook.

Websource

Taiwan Analytics

We are also taking the wrapper off of a new website that we have been plugging away at for several months. This website takes the data off of the Taiwan Stock Exchange Website at the end of the session and crunches it into usable information about what institutional investors are buying, selling and holding in the Taiwan market. As interest swings back towards Asian Equity markets, we hope this will help our institutional investors fine tune their Taiwan portfolios. If you have any comments, suggestions or criticisms, let us know.

Taiwan Analytics Website


Filed under: ETFInvestment ProductMarket CommentNew Feature

Like this post? Subscribe to my RSS feed and get loads more!

Possibly related posts