Page 65 - FINAL CFA I SLIDES JUNE 2019 DAY 4
P. 65
Session Unit 3:
13. Technical Analysis
LOS 13.h: Describe intermarket analysis as it relates to technical analysis and asset allocation.,
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Intermarket analysis refers to analysis of the interrelationships among the market values of
major asset classes, such as stocks, bonds, commodities, and currencies.
Relative strength ratios (described earlier in this topic review) are a useful tool
for determining which asset classes are outperforming others.
After identifying attractive asset classes, an analyst can apply relative strength analysis
to identify which assets within these classes are outperforming others.
This approach is also useful for comparing the relative performance of equity market
sectors or industries, and of various international markets.
