Patience is a Virtue!
With divergences among global policy makers, the volatility in the 4th quarter was expressed in currency value fluctuation, commodity prices – oil in particular, and stock and bond prices. This policy divergence is coupled with an investor view that there will be a difference in economic performance between developed, developing and emerging markets across the globe in 2015.
We take a look at both the equity and fixed income markets as we look toward 2015. In the equity markets, stock valuations are a way to understand how well positioned stocks are to produce an above, below or average return along with interest rates. On the fixed income side, we look and the effects of low interest rates, how the different sectors are performing and what to watch for as the Federal Reserve policy unfolds.
We hope that the newsletter brings some clarity to what’s going on and how we are thinking about portfolio positioning.