Baseline charts for the New Year

We should look at the SP 500 and its components first.  In the past  two years all but XLY and XLF out-performed the SPY.  In the long-term those two will come back and make lots of money for those brave enough.  I find the range of returns from -10 percent for XLP to nearly -70 percent for XLF amazing, what is even more amazing it has contracted from July 2007 when XLE was nearly up 60 percent  and XLF was down 60 percent. 



Next, a quick look at Market Capitalization performance for the last two years.


Pretty tight therefore look for Small and Mid Cap to out-perform in the long-term from here.

Next, how does US compare to the world?


Pretty tight, so risk is on sale!

Lastly Domestic fixed income.



Did I say risk is on sale.  Sell long-duration Treasuries NOW!  If you have a real appetite for risk, TBT.

 

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