To me, when there is market uncertainty, in general, there are two possibilities:
(1) Investors may reduce the amount invested in equities and increase the amount invested in bonds or cash equivalents; or
(2) Investors may rebalanced their portfolio from relative high risk stocks to relative high dividend yield stocks. (Perhaps, it may be just a perception.)
Attached below is the weekly chart of FTSE ST Real Estate Investment Trusts Index vs FTSE STI. For me, the (few) key takeaways from the weekly chart.
- There seem to be a correlation breakdown between both Indexes.
- As per highlighted period for both Indexes, while the FTSE STI was range bounding, FTSE ST Real Estate Investment Trusts Index is trending upwards.
- While there is a possibility of FTSE STI breaking below the Lower Bound of Uptrend Andrew's Pitchfork (in dotted blue) signaling possible downside; the FTSE ST Real Estate ...
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