Over the last few years, there have been more and more articles surrounding the topic…
During the last few weeks S&P 500 companies have been reporting 3rd quarter earnings. It is now apparent that these earnings will be less than what was originally forecasted just a few weeks ago.
Weaker earnings have also shown up in technology sector stocks, which have recently led the stock market and represent some of the leading companies in America. Microsoft, Intel, Google, and even Apple have missed forecasts in recent weeks, and the technology sector’s ability to drive earnings growth in the future is in question.
In light of these weaker earnings, and the other risks that lay ahead of the market, we have removed our tactical sector position in technology and invested it into our all asset fund, which is a diversified basket of assets that provides a better yield than most bond or stock options. This will slightly reduce risk across the portfolios, increase the dividend yield, and help manage volatility as we head into the election and year-end.
Please call us with any questions or concerns. Feel free to forward this to others who might be interested.
Have a great day!
The All Star Team