Based on our behavioral measures for the past year, we have been a bull on India. Since investing in India we are up over 40%, which is our best performing ETF. For the first time in months our behavioral measures have signaled to reduce the allocation to India slightly, 1.5%. The markets we should re-allocate to are Turkey and South Africa which are our second and third largest exposures at the moment. We are still bullish on high yield bonds, but we are running the models every week to determine the right time to sell. Our allocation to the US is still under 5%, our lowest exposure.
At the beginning of last week we said this week will help determine the direction of the markets for the next several weeks. Based on the week we believe the markets are going to continue going higher. Currently, our agent-based-behavioral measure for the US is 0.88. The last time it went as high as 0.88 was back in the beginning of March 2010. From that point it went up to 0.94 right before the flash crash. If the dynamics repeat themselves we see the markets going higher and then a slight correction.
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