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I shared this Stock/Bond ratio chart with Premium, Global Dashboard and Sector Extreme Members last week. This chart shouldn’t be used as a market timing tool, yet it is pretty good at helping investors know when to over or underweight portfolios towards stocks.
Over the past few years, when the ratio is hitting current levels, stocks made little to no upward progress over the upcoming six to nine months.
The opposite took place when this ratio was at lower levels, stocks made quality gains in the upcoming months.