Good article in the Financial Post - http://network.nationalpost.com/np/b...

The markets are in a transition from “worse to bad” following a rally driven by “seller exhaustion” and a sense of investor “realism” that the world indeed is not coming to an end, says Vincent Delisle, a strategist at Scotia Capital. He says now is an opportune time to begin to build positions in cyclical assets.

“Last week’s showing offered a glimpse of what to expect when the sun shines again: Equities outperformed bonds, small caps beat large caps, gold lagged the CRB index, and financials were leading the way,” he says.

Scotia Capital has raised its equity position to be 5% overweight, with corporate bonds 3% overweight. It has been adding TSX financials, discretionary and industrials-rails to its portfolio and rotating away from gold equities. It has also raised its stakes in mining, oil and fertilizers.

Snug