Our outlook for global economic expansion bodes well for equity markets, especially those that have lagged over the past 12 months. We prefer emerging markets that have a current account surplus and significant exposure to global trade.
Our Wealth Builders Portfolio has benefited from its overweight exposure to industrials and energy stocks; in this issue, we add a consumer-discretionary name that stands to benefit from the housing market’s recovery and the remodeling boom.
Welcome to the bear market for the once-booming global mining complex. With prices of copper, gold and other mined commodities sliding, the prices of the world’s largest mining companies have approached valuations not seen since the nadir of the 2008-09 bear market. But there's gold in this downtrodden sector--especially for hardy income-seeking investors with the patience to wait for a turnaround.
Investors preference for low-beta names and dividend payers has pushed valuations of consumer staples and other safety-first fare to frothy levels. Our favorite cyclical sectors, on the other hand, sport favorable valuations and solid upside potential.
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