Bonds do not look attractive and most fixed income managers are looking to convertible bonds and preferred securities for yield.
Bullish seasonality is coming into play as market breadth has expanded last week. Small caps (IWM) was up substantially – about 6% – this week. As we we have been waiting for, Industrials (XLI) and Builders (XLB) are reacting well on hopes of fiscal stimulus (possibly on a Biden win), while Transports (IYT) reaches new highs.
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