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BCA Weekly Commentary 1/01/21: Balancing Waning Covid-19 & Risk

SUMMARY. As we enter 2021, we weigh the recognition on our optimism tied to waning covid-19 risks with market valuations, policy risks and levels of investor optimism of growth in 2021. Also, we are monitoring closely retail/individual investor speculation and the falling US dollar as well.

INVESTMENT IMPACT. Although our models do not posses high levels of cash like at the the end of 2019 we have chosen to overweight the utility sector and gold mining sector to reflect our concerns mentioned above. These sectors historically posses potentially lower levels of correlation with the market in the event of a decline. Further, most of our holdings are in the value category vs growth category across all of our model portfolios implying relatively lower valuations. Although we expect positive overall economic growth we are cognizant of the risks it may disappoint. Thus, overall we believe our model portfolios are positioned for conservatism. Although in recent past, higher cash/ bond levels have been better at preserving capital, we still favor higher equity levels albeit the ones mentioned above as well as specific stocks in our models.

One a separate note, we have published our full year 2020 performance on our website which we are proud of. We thank our faithful clients and look forward to serving them and prospective clients in the future as we focus on preserving and growing their assets. As always please contact us for questions.

Our model portfolio performance has been updated on our website as of 12/31/20.

For more insights see our website and disclosures found there at BCA. The thoughts contained in this newsletters are intended lend insights into BCAs current & future thinking on changes to BCA model portfolios. They are not intended to be recommendations and should not be taken as such. As always contact us for further explanation of how these events can affect your finances. To unsubscribe from our newsletters & website please email us with "unsubscribe" in the subject.

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