Current market environment

What is working in the current market environment:
1.       Small Cap Companies (IWM)

      2.      Overall U.S. economy (SPY)

      3.      Hi Yield junk bonds (JNK)

      4.     Gold (GLD)

What is not working in the current market environment:

      1.       Growth Momentum Leaders  

      2.      Treasury Bonds (TLT)

Stock categories like “Small Cap Companies (IWM)”, and “Overall U.S. economy (SPY)”  are working due to the valuation play. Companies have a lot of cash on their balance sheet, so at their current stock price they are attractive from a value standpoint.

“Hi Yield junk bonds” are working because of their high yields. Here again we see a value/income play.

“Gold” is working because of monetary easing by central banks all over the world.

“Growth Momentum Leaders" are not working currently and have not been working for sometime because there is no growth in the economy. We need to wait for growth in the economy so some new “leadership” starts to show in this area.

“Treasury Bonds” are not working because the market considers them to be extended in price, currently.