Kyle (Defiance Capital) stated that the market outside the US is in a structural bullish trend and has decided to allocate 75% outside the US, 25% into the US.
The assessment was made on February 10th after he observed the performance of the stock market over the past 4 months: the US market has been highly volatile, facing the risk of currency depreciation and two-way fluctuations exceeding 20% in a non-bullish environment.
MAIN CONTENT
Market outside the US: structural bullish trend over the past 4 months.
US market: highly volatile, two-way fluctuations >20% and currency risks.
New allocation: 75% outside the US, 25% US market.
Market assessment and volatility levels
Kyle assesses that the market outside the US is in a bullish trend, while the US market is not in a bullish environment and is highly volatile.
According to him, data from the past 4 months show that markets outside the US are exhibiting a structural bull market state. In contrast, the US market has experienced significant volatility, with trading conditions not reflecting a bull market.
Kyle specifically pointed out that the US market is simultaneously facing the risks of currency depreciation and two-way fluctuations exceeding 20%. These factors are the main basis for changing the asset allocation strategy.
