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Stock valuations are at an all time high while bonds are at an all time low...where do we go from here and how will today's valuations impact your portfolio allocations going forward.
On the equity side... trading the gains in QQQ (Thank Q, Thank Q, Thank Q) into under valued allocations of Small Caps, Emerging Markets, and commodities.
On the Bond side... no longer a hedge for equity risk. 10 year treasury is at 0.7% . A 60/40 portfolio may successfully return 1- 3% over the next 10 years (Grantham has felt this way for the last 10 years). Retirees don't want a potential 50% equity side draw down.
Gold and commodities have upside potential of 10-12 % increase due to inflation pressure as a result of a secular weak dollar and price increases in resources (industrial output).
Be Bullish - China Stocks & Asia Satellite Countries - US Small Cap - Commodities - A weak dollar makes the rest of the world's markets strong with more stimulus on the way which may also be good for silver and gold. - A Global approach to equities exposure might look like (25% US / 75% Foreign)
Comments
On the equity side... trading the gains in QQQ (Thank Q, Thank Q, Thank Q) into under valued allocations of Small Caps, Emerging Markets, and commodities.
On the Bond side... no longer a hedge for equity risk. 10 year treasury is at 0.7% . A 60/40 portfolio may successfully return 1- 3% over the next 10 years (Grantham has felt this way for the last 10 years). Retirees don't want a potential 50% equity side draw down.
Gold and commodities have upside potential of 10-12 % increase due to inflation pressure as a result of a secular weak dollar and price increases in resources (industrial output).
Be Bullish
- China Stocks & Asia Satellite Countries
- US Small Cap
- Commodities
- A weak dollar makes the rest of the world's markets strong with more stimulus on the way which may also be good for silver and gold.
- A Global approach to equities exposure might look like (25% US / 75% Foreign)