Between the Invasion of Poland in September 1939 and the Battle of France in May 1940, the British, French and Germans declared war on each other but did not initially engage in any serious battles. The six month period was dubbed the “Phoney War”.

Investors in global equity markets must feel very much like poor French farmers in Eastern France in the beginning of 1940. The Bulls and Bears have both lined up impressive resources, politicians and central bankers are playing a high stakes game of chicken in Europe and twitchy investors (hedge funds, perhaps?) are jumping back and forth between “risk on” and “risk off” trades to attempt to eke out enough performance to hang onto some of their funds at the year end redemption sweepstakes.

For the week ahead, there doesn’t appear to be anything too dangerous on the economic front and with Italy and Greece poised for new, technocrat governments, the political side might not yield any surprises for a few days.

That said, the S&P 500 is having a difficult time cracking rhrough to the positive side of the 200 day moving average.

The Fund King System is still suggesting a cautious outlook with low positive ratings on US government bonds, gold and Japanese Yen. The rest of the field is still rating in negative numbers, suggesting that discretion is still the better part of valor as we approach the holiday season.

New Developments

We will soon be releasing our app for the Android system as soon as we have worked out all the kinks. An iPhone/iPad app is on the to do list as well.

The improvements in the code will also be retrofitted into the systems that we use on the website.


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