A New Bull Market in India

The statistical blip up in US inflation last week should prove a one-off. It is a testimony to the power of present bullish sentiment that stock markets in the US and Asia have not reacted more negatively to the news that the Fed has turned to a tightening bias.

Fears about overheating and rising interest rates in the US conflict with the new high made by the Dow Jones Utility Average. Strength in utility stocks is usually a lead indicator of a rally in bond prices. This has not been the case this time. Is the bond correction now over or are the American utility stocks just another resting point for feverish liquidity looking for a home?

Meanwhile, Greed & Fear is adjusting the Far East Free ex-Japan asset allocation primarily for changes in the MSCI weightings announced this week which will be implemented at the end of May. Details can be found below. ...