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As Bonds Approach Turning Point Look to Cyclical Stocks

Bonds are rapidly approaching a major turning point and investors should pay close attention in the coming weeks. Why? A recent Bank of America survey highlighted the bearish positioning by most institutional managers: a heavy overweight in bonds proxies, such as utilities, consumer staples and REITs, and underweight exposure in equities, notably cyclicals.

My technical work continues to suggest investors are at risk of major reversals developing for which they are not positioned. An upside break...

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