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WSJ ... Week In Review ... Major Indexes ... P/E Ratios & Yields
A week is too short to detect a trend but I do sense the beginning of a rotation from relatively recession-resistant assets (health care, tech, etc) into global economic growth exploiting sectors (commodities, inflation hedges, emerging markets, etc). It could just be profit taking in the former that had a good run up but something to keep an eye on for active allocators.
What stands out year-to-date, to me, is that European markets as a whole are mostly green and seem to be doing better than both the Americas and the Asia Pacific areas. In the US, the metals (gold & silver) are starting to recover form being oversold and the REITS and utilities are making a good showing but biotech is by far the leader.
What I have done ...
I added to my reit fund at the first part of the year which has worked out well ... some of the funds I own in my specality sleeve own the metals so this has also worked ... in my small/mid cap sleeve I have some exposure to biotech another strong performer ... and, in my (two) global equity sleeves (one in the growth & income area and one in the growth area) I have better than a thirty percent exposure to Europe in each along with about a twenty percent exposure to the emerging markets in the one found in the growth area. These two sleeves have also performed well. About ten percent of my equities are in utilities and this sector has been a recent leader so this has also been a contributor.
The results ...
Year-to-date my portfolio is leading the Lipper Balanced Index which is just barely positive at about one tenth of a percent while I am up better than one half of one percent. Not where I'd like to be but better than my bogey. Extending my year-to-date results out for a full year, results in only a five to six percent return which will make distributions. I'll take it but would like to do better as this is far short of my 16.5% annualized return over the past five years.
Additional comment ...
Generally speaking the best two quarters, I have found, to be invested in the stock market are the first and fourth quarters. Seems we are sure off to a slow start.
Reply to @Old_Skeet: I agree regarding those Reits. My holding in ARYVX has shown good resilience and bounced back after losing its gains late last year. The EM funds are also coming back even while most investors were selling.
Comments
Here is my one paragraph take ...
What stands out year-to-date, to me, is that European markets as a whole are mostly green and seem to be doing better than both the Americas and the Asia Pacific areas. In the US, the metals (gold & silver) are starting to recover form being oversold and the REITS and utilities are making a good showing but biotech is by far the leader.
What I have done ...
I added to my reit fund at the first part of the year which has worked out well ... some of the funds I own in my specality sleeve own the metals so this has also worked ... in my small/mid cap sleeve I have some exposure to biotech another strong performer ... and, in my (two) global equity sleeves (one in the growth & income area and one in the growth area) I have better than a thirty percent exposure to Europe in each along with about a twenty percent exposure to the emerging markets in the one found in the growth area. These two sleeves have also performed well. About ten percent of my equities are in utilities and this sector has been a recent leader so this has also been a contributor.
The results ...
Year-to-date my portfolio is leading the Lipper Balanced Index which is just barely positive at about one tenth of a percent while I am up better than one half of one percent. Not where I'd like to be but better than my bogey. Extending my year-to-date results out for a full year, results in only a five to six percent return which will make distributions. I'll take it but would like to do better as this is far short of my 16.5% annualized return over the past five years.
Additional comment ...
Generally speaking the best two quarters, I have found, to be invested in the stock market are the first and fourth quarters. Seems we are sure off to a slow start.
Old_Skeet
Bond Land