– The Market Map model indicates allocation to long bonds
– Since 1924, there were 16 instances of long bond allocation
– This allocation applies to the 3rd quarter of 2016
As another predefined date for asset allocation action as defined * by the Market Map model has been reached, at this time the model is indicating an allocation from cash (position allocated on 01/29/2016) to a 75% allocation in the iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT). The model identified 16 previous instances of allocation to long bonds in the investment timeline since 1924.
As we can see from the chart below, there is statistically significant negative correlation between long bonds and S&P500 during Map model bond allocation signaling.
The long bond allocations within the full record of model allocation changes can be seen here.
* Objective # 3. To make infrequent asset allocation changes occurring on fixed, predefined dates during the course of market cycles. See objectives.