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About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Friday, September 02, 2011

Investor Worry Near Flashpoint

I like to watch the relative strength of the cyclicals to glean investor expectations regarding the
future behavoir of the economy. I have linked to the relative strength of cyclical stocks ($CYC)
compared to the SPX here.

The cyclicals were the market leaders until February, 2011. The group has weakened appreciably
since late July and a further drop in relative strength below that .685 level could signify market
players may have thrown in the towel on continued economic recovery in the US.

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