10 Year US Treasuries just hit 3%. I believe it will hit 3.25% by end 2013 and 4% by mid 2014. If you're holding on to high yield or investment grade bond funds, it's time to shift to balanced funds NOW before you incur even greater losses. Investment Grade bonds are in their biggest bubble in 3 decades!
I also mentioned in an earlier post that Asia ex Japan and China stocks are in a bear but the downside is limited as valuations are good. Right now, US equities are sideways, and so are Europe. But Asia ex Japan, Emerging Markets and China are attempting to form a base, and at 1 standard deviation below their median valuations. The rise could be very strong.
In developed markets, I prefer Europe to the US because Europe has just emerged from a very long recession.
Silver and gold are still holding steady. I spoke about buying silver at 20. it is now at 23.80. I bought gold at 1310. It is now 1380. If their supports hold, gold and silver could trend higher.
AUDUSD also looks to have formed a base.
I find that so many people are bearish on China, Asia x Japan and EM equities now that it could be time for a change of trend. US is fast becoming a crowded trade so I may just avoid it!
