QVM Client Letter (Vol. 7 No. 7): Current Market Conditions

By: Richard Shaw | Mon, May 5, 2014
Print Email


Federal Reserve indexes say that the economy is going at about its long-term trend rate, and financial stresses are at low levels.

Stock markets indicate a shift toward a more conservative bias (with the exception of emerging markets showing life from depressed levels).

Bond markets show a shift back toward bonds, and toward longer maturities in an apparent goal of more safety (with the exception of emerging markets improving from depressed levels).

US stock sectors show a move away from economically sensitive sectors, such as the consumer cyclicals; toward economically defensive sectors such as utilities and consumer staples (even though utilities are well overvalued and staples are expensive). Energy is also doing well recently.

Some of these changes may be the result of fears over the Russia/Ukraine situation, and others may be concerns about Chinese banking problems; as well as a sense that stocks may be at the upper end of fair value. Note that market reactions to geopolitical events have historically generally been overdone and short-lived.

QVM Client Letter (Vol. 7 No. 7): Current Market Conditions



Richard Shaw

Author: Richard Shaw

Richard Shaw

Richard Shaw

Disclaimer: Opinions expressed in this material and our disclosed positions are as of July 5, 2010. Our opinions and positions may change as subsequent conditions vary. We are a fee-only investment advisor, and are compensated only by our clients. We do not sell securities, and do not receive any form of revenue or incentive from any source other than directly from clients. We are not affiliated with any securities dealer, any fund, any fund sponsor or any company issuer of any security. All of our published material is for informational purposes only, and is not personal investment advice to any specific person for any particular purpose. We utilize information sources that we believe to be reliable, but do not warrant the accuracy of those sources or our analysis. Past performance is no guarantee of future performance, and there is no guarantee that any forecast will come to pass. Do not rely solely on this material when making an investment decision. Other factors may be important too. Investment involves risks of loss of capital. Consider seeking professional advice before implementing your portfolio ideas.

IMPORTANT NOTE: We are a Registered Investment Advisor. We do not sell investments or control client assets. We are professional advisors compensated on an hourly basis or flat fee basis for portfolio management or for our coaching advice. Clients for personal investment advice receive recommendations and guidance tailored to their specific needs. Newsletters and research publications, are not personal investment advice, are generic in nature and should not be interpreted as specific advice for any specific person or situation. In our research, we utilize information sources that we believe are reliable, but do not warrant the accuracy of those sources or our analysis. Research, data and opinions expressed on this site are for information purposes only, are general in character and are not advice specific to any individual investor.

Copyright 2008-2017 by QVM Group LLC All rights reserved.

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com