Ned Davis Research has kept a bullish recommendation toward US equities for more than a year, but that may change soon if the weakness seen over the past month persists.
Tim Hayes, the firm’s chief global investment strategist who correctly called the current bull run in US stocks, is closely monitoring whether Ned Davis’s Stock/Bond Composite extends its recent decline. Traders use this key indicator to assess the direction of equities, and it’s been sinking as markets are coming to grips with the already-slim chances of the Federal Reserve lowering borrowing costs again soon.
