SUMMARY. Over the past 2 weeks we began the reopening of the the economy. As a result, we have seen a shift to those companies that would benefit the most as a result. Housing data remains positive while employment claims continue to be high although down from the peak. In China manufacturing through a private survey showed signs of expansion in May a very positive sign. Lastly, we will watch closes the rate of business failure post covid-19 as we deem that and employment keys to determining the pace of economic improvement.
INVESTMENT IMPACT. Our model portfolios remained weighted towards those companies who's valuations (in our view) have been slow to reflect the reopening of the economy. Having said that we have reduced exposure to US markets and to select names that recently appreciated significantly. Further, we shifted some assets overseas in markets that are depressed such as Brazil where Covid-19 cases are ramping still and markets that remain at depressed valuations relative to the US. Cash levels are slightly elevated across our growth models.
Our model portfolio performance has been updated on our website as of 5/29/20.
For more insights see our website and disclosures found there at BCA. As always contact us for further explanation of how these events can affect your finances.
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