Portfolio Clean-Up
Continued market strength makes dips an opportunity to buy on the long side. However, sector and company specific developments lead us to sell a couple Wealth Builders Portfolio members and add one.
From Growth to Value
Many investors and the financial media tend to get bogged down by volatility and “noise” in economic data releases. We prefer to look at a handful of big-picture indicators that have stood the test of time. And these indicators point to continued strength in the economy.
World Markets: Bubble Time
Investment correlations that favored passive investment strategies are likely to break down while the bull market nears its end, favoring strong pickers. Look to emerging markets for some of the best opportunities.
Europe’s Synchronized Growth
Four months into the year and the global economy is in the midst of synchronized growth that should allow it to grow around 3.5 percent this year. China’s solid growth, India’s recovery after the monetarization jitters and the eurozone’s stronger-than-expected growth have been the catalysts for the strong showing this year.
Europe: Things are Good
The current policies of the ECB were designed to fight deflation and financial fragmentation in the eurozone. Currently, though, stronger economic activity, easier access to credit, lower borrowing rates and weakening deflation pressures open the door for tightening, even if only gradual in nature.
Good News and Bad News
Two portfolio members are making the news, and we break down what it likely means for the holdings. Also, if you weren’t part of the inaugural subscriber chat, be sure to read the transcript.
Global Synchronized Growth: Favor China & Europe
The data continues to point to synchronized global growth. Specific trends from China and recent European electoral results point to these areas as two worthy of your investment attention.
Still Fans of Financials
Although the S&P 500 appears overdue for a pullback of at least 5 to 10 percent, we remain bullish on select financial stocks and would regard any correction as an opportunity to accumulate our favorites.
Has the Trump Trade Peaked?
Investor talk has turned against the Trump Trade, and for all the wrong reasons. While a market correction is due, look to the sectors that did well during the post-election period to perform well–making pullbacks an opportunity to buy.
Risk Management and Positioning for the Future
We exit a few positions where our investment theses no longer hold, kick the tires on two of our winners and round out the Wealth Builders Portfolio’s financial sleeve with a new addition.