Our Robot Allocator further shifts the allocation weighting across asset classes due to lower volatility and a broader market rebound throughout the week. The cash position thus decreases to 10% (against 15% last week) while our Krach indicator remains well above the trigger level (score at 45.5). However, the composition remains unchanged within the different asset classes.
Over the past week, the biggest variations in scores have occurred on equities and on agricultural commodities.
The short-term ratings continue to deteriorate on equities despite the rebound this week, but the impact of the correction remains for the moment essentially in the short term, and does not give rise to arbitrations within this asset class because the long-term ratings remain high enough that the positive trend is not in question. The current correction, although brutal does not constitute a reversal of tendency even if this one is weakened. A larger relapse than announced by this rebound could, however, begin to impact long-term trends.
It is interesting to note that certain assets do not seem to be affected by the correction at all, as some agricultural commodities: corn, wheat or cocoa, which, on the contrary, show a steady acceleration of their short-term dynamics for specific reasons.
In terms of bonds, the rebound of the week seems rather technical but produces a slight improvement in the short term in a world that remains fragmented.
After a pullback last week, volatility is now being watched closely as the market correction may not be over, which justifies a share of liquidity in the portfolios.