I look at a lot of ratios, ratios of asset classes, ratios of style and ratios of market cap and so forth. It does not stop there every day of my life.
What I get from this is where the money is moving on an intermediate term time frame.
So what do I mean by ratios? I divide one thing by the other and plot on a chart. If x is outperforming y, I want to be overweight X.
One Ratio that has been great for me (not perfect) is the ratio of stocks (equal weight) to the put to call ratio (a sentiment indicator). Right now this indicator remains bullish.
Here is the chart:
And I’ll check with my west coast analyst, Erin to see what she thinks!
Thanks for your time!