2022 has been a difficult year for financial assets with the traditional 60/40 portfolio suffering one of its worst annual performances on record. This has many investors asking whether the damage done means stocks and bonds now offer an attractive buying opportunity. Perhaps what they should be asking instead is whether a larger regime change is underway.
Of course, that is a very difficult question to answer from a macro perspective but it is made much simpler by way of technical analysis and trend-following studies. In this regard, I recently wrote about the Coppock Curve but there is another way to approach the issue that is just as useful if not more so.