Over the last few years, there have been more and more articles surrounding the topic…
Just a quick note to let you all know what our thoughts and actions are after the past few days. Backing up a couple of weeks, we were steadfast in our belief that the debt debacle would be addressed before the August 2nd deadline and that the GDP and forward looking earnings numbers supported a growth continuum (all be it slow).
Then came Monday and Tuesday and Wednesday and every economic number turned for the worst, starting with the first quarter GDP estimated to come in at 1.9% being revised down to 0.3%. Can somebody say our government at its best? This number along with slower job creation has put a new view on the U.S. economy and the next 12 months. We believe we could be headed into a cyclical correction or bear market. As a result, we are backing off on our domestic and international growth exposures by 8-20%, depending on which portfolio you have.
Our core belief is the same and that is that time in the market wins and timing the market does not, but with these economic facts changing so quickly we feel it is prudent to be more conservative. Cash will be king for us! We will be continuing to monitor all of our positions for additional changes but please give us a call with any and all questions.
|Past Allocation||New Allocation|
|Portfolio||Cash/Bonds/US Stk/Int Stk/Other||Cash/Bonds/US Stk/Int Stk/Other|
|Income||6% / 46% / 31% / 15% / 2%||12% / 46% / 27% / 13% / 2%|
|Balanced||3% / 34% / 36% / 24% / 3%||13% / 34% / 29% / 21% / 3%|
|Cons Growth||1% / 20% / 44% / 31% / 4%||15% / 20% / 34% / 27% / 4%|
|Growth||1% / 8% / 51% / 36% / 4%||17% / 8% / 40% / 31% / 4%|
Have a great day!
Bob and the All Star Team