Over the last month, we have been suggesting that as the new administration and Congress try to pass legislation, there would be bumps in the road, and that this would spark corrective behavior. The technical indicators support this scenario. If SOYB starts trading around 19, then we would buy either DBA or SOYB and hold through the end of June/beginning of July. We think developed markets, especially Europe, could do better than emerging – and we do note, once again, the strong accumulation model buy signal in EFA to bolster this view. We rate emerging markets a hold, and cautious advisors might want to take some steps to manage risk in this area.
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