Not to Get Technical, But Let’s Get Technical
The article discusses various investment approaches, emphasizing Orion's belief in dynamic, diversified, multi-asset portfolios combining active and passive strategies, while highlighting the role of technical analysis—specifically noting that 91% of stocks in a certain context exhibit patterns related to recent performance, trading volume, and moving averages—which may provide insights into the ongoing bull market.
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Not to Get Technical, But Let’s Get Technical
Wealth Management
May 3, 2021
May 3, 2021 11:22 AM
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One of the more interesting points about investing is the myriad of ways one can go about putting capital into risk assets. Among other options, there are actively managed and passive vehicles; there are highly-concentrated and broadly-diversified strategies; and there are fundamentally and quantitatively driven portfolios. There is also the use of technical analysis when considering what securities, sectors or asset classes to invest in and when. It is this approach – or at least one datapoint that ties back to technical analysis, and what it might mean for the ongoing bull market – that is the focus of this Weekly Wire.
But before we speak to that point, we would note Orion believes dynamic, diversified, multi-asset class portfolios (that are both actively managed and incorporate active and passive vehicles) are the most prudent way to allocate capital, and the best means of ensuring a favorable investor outcome. With that written, technical analysis – at a high level – is an attempt to discern the direction of a security, sector or broad market based on factors that could include recent performance, trading volume and price relative to a moving average. Well, it turns out 91% of the stocks that make up the S&P 500 are trading above their respective 200-day moving average (the highest since 1971).
This datapoint indicates the ongoing move higher by the market is both broad based and has meaningful momentum to it. And if history is any guide, a bull market top for the S&P 500 does not present itself when so many of the stocks that make up the index are biased higher. We remain constructive on US equities.
The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital Investments, LLC, a registered investment advisor. 1493-BCI-5/3/2021
Tagged: Tim Holland, weekly wire, market perspectives, U.S. economic growth
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