As I look back at the past four months of blog’s, there is a recurring theme that is intermixed in our comments, “The foundation is forming but not yet complete!”This week brings more uncertainties with a splash or two of good news, or should I say, not as bad of news. With layoffs continuing, but slowing down, and corporate earnings still declining, but not as significantly, we get that sense of going nowhere fast.My thoughts are – better sideways than down!
After this very nice bounce off the bottom, we are anticipating a sideways market, or should I say, hoping for a little break.The market has actually gotten ahead of its self and at this point earnings need to catch up a bit.
As we meet and talk with you, our clients, the question of what next is very common. After anticipating the high yield bounce (up 25% YTD), being ahead of the game on the emerging market exposure (up 50% YTD), we are now looking for an entry point to the small cap world over the next two months.With somewhere between a 12-30% cash position still available in your portfolio’s, we will use at least 4-10% of this money for the small and mid size company exposure.These always turn around much quicker than the large companies!
As the famous hockey payer Wayne Gretzky so eloquently said, “You succeed by going to where the puck will be, not to where it is now!”
Have a great week – Happy Spring.