Tim Hayes, chief investment strategist at Ned Davis Research, stopped by the Bloomberg studios for a brief interview:
NDR has been very bullish for some time now. They actually went maximum overweight equities in early April, just ahead of the intermediate market top. And they remained with that thesis throughout the summer: NDR Continuing Bullish.
As Tim Hayes mentions, one of the primary reasons for NDR’s bullish views have been the historical performance of stocks within this specific period according to the US Presidencial cycle:
Valuation also remains relatively low. But the market is obviously overbought at the moment. So NDR wouldn’t be surprised by a short term correction within a continuing bull market.
I’m always comforted when my own views coincide with those of NDR and other technical minded luminaries like Lowry, Leuthold, etc. For the moment I’ll take the solace that it offers.
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