For two successive columns now, the JLI has been unreserved in his bearish long-term outlook for global equities markets. As noted previously, the “Relative Strength Indices” (RSI) of all the major exchanges are operating in perilously overbought territory, and P/E ratios are also at or near historic highs. Economists at Bank of America keep track of nineteen mostly inside-baseball statistical “triggers” for a bear market, and over the past three months eleven of them have been triggered. The arrival of the next bear market is, in the eyes of most seasoned pros out there, no longer so much a question of whether as a question of when. Which leaves only the question of how to weather the gloom.
Fortunately I am here to help, with five recommendations for ETFs to consider as part of a defensive portfolio — analyzed with strategy breakdowns, geek-out statistics galore, and more than a few helpful visuals. The entire column should take about fifteen minutes to read.… Continue reading