BCA: As Populists Rule, 35 Year Government Debt Bull Market Nears End

Research out from BCA|Edge points to a portfolio allocation strategy that in some cases ignores the sprinkling of economic wisdom recently dispensed by well-known hedge fund and asset managers.

In a monthly portfolio strategy out July 29, BCA reveals that it likes equity investing in Japan and prefers high yield and investment grade debt over government sovereigns. Overall the allocation is equally neutral on equities, fixed income or cash. In terms of sectors, they like energy, industrials, healthcare and info technology while not much liking consumer discretionary, consumer staples, financials and telecoms.

Is stimulus at its end in Japan or with fiscal help is it the beginning?

There are two sets of arguments...