IceCap Asset Management BELIEVE “As we approach the last days of winter, we anticipate significant market volatility heading into the US debt ceiling debate, and then the French/German elections.Political and Interest Rate Pendulums have started to swing away from a place where the majority of the world had grown very accustomed to experiencing.”
March 2017 The Pendulum
These swings will intensify away from most peoples’ comfort zone,reigniting the government debt crisis in Europe, which will in turn produce incredible opportunities to lose money in bond strategies and currencies, while also make money in stocks and USD.
Bonds
No changes to our long-term outlook for bonds. All of our portfolios hold minimum allocations to bonds, with no high yield, no emerging market debt, and no long duration.Current conditions make bonds the riskiest long-term investment.
Stocks
We have neither added nor sold any equity holdings since our last Global Outlook.Despite many negative news headlines about equity markets, our research indicates there is no major risk on the horizon.Stock market sentiment has reached extreme levels, and we’ll once again patiently await for an opportunity to add further to these strategies.
The only reason they are not adding to stocks is current Excessive optimism in stock markets and similar disdain for bond markets ( emphasis mine)
Currencies
Their long-term outlook remains the same – as the global crisis accelerates, they fully expect USD to surge.
http://icecapassetmanagement.com/wp-content/uploads/2017/03/2017.3-IceCap-Global-Market-Outlook.pdf