The Proper way to Position your CORE Portfolios

October 16, 2017

 

 

Over the past 2 weeks I have had the opportunity to meet with several of our ‘institutional’ investment managers so I wanted to send you out an outline of what they are thinking and how they are positioning our/your CORE portfolios.

 

 

SIGNATURE TEAM:

  • 2013-2015 they were concerned  because CREDIT was going bad and financial systems were contracting

  • Government bonds ‘ruled’

  • Summer of 2016 saw a change in their outlook

  • Started to engage in risk assets (equities and corporate credit)

  • Government bonds sold

  • NO RISK EQUALS ZERO REAL RATE OF RETURN (after inflation)

  • Now (2017) they see an extension of equity cycle

  • Extended period of growth

  • POLITICAL risks are more of concern once we enter next recession…not right now

  • 6-10% returns

  • Corporate bonds though not cheap are supported by the economy

  • See some CDN$ weakness ahead

  • OVERALL-OPTIMISTIC

  • Not concerned about horrible investment grade bond market…bond yields have already moved higher

  • CORE inflation is only 1.7% so long bonds will not move much higher

  • Emerging markets have LESS GOVERNMENT DEBT than developed markets

  • More growth in emerging markets

  • China is growing

  • Research and development spending is high

  • E-commerce system is being developed and is a growth factor

  • Clean energy being developed

  • China has 30% of the worlds renewable energy

  • Electric cars have double the sale of U.S.

  • Resource sectors are stabilizing

  • $45-55 range for oil makes sense

  • low cost firms make money in this price range (think Suncor)

  • International markets have higher growth than the U.S.

  • Inflation is back but only in the 1% range 

If you have any questions regarding this e-mail, financial plan or portfolio please contact the office (Gayle) or myself.

 

I have also attached a chart showing the tactical changes made in the CI Signature Global Income and Growth Portfolio over the last 3 years.

 

I CONTINUE TO VIEW THIS FUND AS THE KEY CORE HOLDING FOR MOST CLIENT PORTFOLIOS.  AS THE CHART BELOW SHOWS THIS FUND HAS OUTPERFORMED ITS PEER GROUP OVER 1,2,3,4,5 AND 10 YEAR TIME FRAMES

 

https://www.theglobeandmail.com//globe-investor/funds-and-etfs/funds/summary/?id=65104&companyName=CI Signature Global Income & Growth 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclaimer:

The information and opinions contained herein have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Argosy nor its affiliates accepts any liability whatsoever for any loss arising from any use of this report or its contents. This report is not, and is not to be construed as, an offer to sell or solicitation of an offer to buy any securities and/or commodity futures contracts. The securities mentioned in this report may not be suitable for all investors nor eligible for sale in some jurisdictions. This research and all the information, opinions, and conclusions contained in it are protected by copyright. This report may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions, and conclusions contained in it be referred to without the prior express consent of Argosy.

 

‘historical analysis does not reflect future returns’

 

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