We have made only minor changes in the portfolio during November, reducing our hedge by approximately 4% and our cash moved up by about 5%. Most of our technical and fundamental indicators are very cautious regarding the equity and fixed income markets. We believe the markets have been driven primarily by very aggressive Federal Reserve…
Our Equity Income Strategy had a good month in October, up 1.29%. The sentiment has clearly gotten very bullish lately as bulls out number bears 3 to 1. This type of excessive bullishness is associated with market tops. Our three year view of the market is for a flattening of returns, with both bonds and…
Pat Adams, CFA (PVG’s CEO and Portfolio Manager) was quoted in USA Today’s article “Is the Fed inflating a stock bubble?”. “We believe a bubble is developing in stocks,” says Patrick Adams, portfolio manager at PVG Asset Management. “Fed policy is forcing money into (stocks), pushing forward returns that would have come in future years….
Financial advisors and clients have a tough job with managing their expectations and financial needs with the underlying fundamentals and risks of the financial markets. It may seem like an impossible task at times. After all, we are only human, and it is a human instinct to be greedy at market tops and conversely, believe…
Stocks, Particularly the High Yielding, Still Preferred Over Bonds Our economic view was well expressed last week by John Williams, president of the San Francisco branch of the Federal Reserve when he said: “We’re seeing an economy that continues to grow,” but “The growth is frustratingly slow.” Deleveraging of both private and sovereign debt and…
April 2012 Cautious After a Good Quarter We are pleased that all PVG portfolio strategies benefited from strong first quarter market performance. After such a strong quarter, we have become more conservative or protective of client portfolios. Full article…. April 2012 Market Review
We anticipate stronger markets for U.S. stocks and higher yielding corporate equity, bonds and income funds this year. The economy continues its slow expansion. Stock values are attractive, particularly relative to low yields on treasury bonds. And, investor confidence has recently been at extreme low levels, similar to those last seen at the 2008-2009 bottom….
We are becoming more constructive on the markets. The lack of new negative economic or political news, growing negativity on the part of investors, market volatility without a renewed decline, along with the passage of time since early August are all positives in our opinion. In hindsight, stock and bond-market investors, including professionals, were spooked during…