050114 CGI Seasonality of various Asset Classes and Mid Year Strategies

Short and intermediate technical indicators for most global markets and sectors are overbought and rolling over. We are advising investors to use any temporary market strength is an opportunity to take profits, keeping seasonal trends of the various shown equity indices, bond indices and currency indices in mind. We believe that it would be prudent for investors to reduce exposure in US & European equity markets in economically sensitive sectors at current prices.

We have been focusing on various type of alpha generating strategies since our early days; however, one of the most effective strategies we constantly attempt to refine and adapt to maximize outperformance is the “seasonality affect” of various asset categories.Although there are defined seasonal trends for equities, bonds, currencies, and commodities, they are not directly correlated, nor inversely correlated. It takes more detailed analysis in order to get a better understanding on the “why’s and why not’s” of seasonality factors for each asset class.

We welcome the opportunity to work with you directly to create appropriate portfolio hedging strategies to take advantage of these seasonality trends.