RRG Charts

April 2015

RRG Charts

All asset classes starting to hug the benchmark

by Julius de Kempenaer

The Relative Rotation Graph below shows the rotation of various asset classes (ETFs) around a balanced portfolio as represented by VBINX (Vanguard Balanced Index Fund). While reading this RRG the two asset classes that remain on the outskirts of the plot are commodities (DJP) and Real Estate (VNQ). All other securities on this Relative Rotation Graph are getting closer and closer to the center of the chart i.e. closer to the benchmark. A rotation close to the center of the chart means that the performance of these securities lies in line with the performance of the Read More 

RRG Charts

Strong relative rotation for GE, JPM and GS

by Julius de Kempenaer

It is time for a look at the relative rotation of the Dow 30 industrial stocks again. The Relative Rotation Graph below shows the 30 stocks that make up this index. When I look at that RRG there are two things that immediately catch my eye. The first thing is the 'cluster' of stocks that just started heading into the leading quadrant from improving, in combination with one that is 'returning' to the leading quadrant from weakening. The second is the cluster of stock that are inside the weakening quadrant but heading towards the lagging quadrant at different angles. Read More 

RRG Charts

China flying off the (RRG) charts!

by Julius de Kempenaer

The first time I wrote about international equity markets on this blog was last year in October. Already back then China had entered the leading quadrant on the Relative Rotation Graph holding a number of international equity indices. And if we look today we will see that China is still on the far right-hand side of the plot, indicating that the strong relative up-trend against the rest of the world is still fully intact. So if you are short on time the main takeaway from this article is that China is still strongly leading over pretty much any other equity market in the world and the Read More