Updated: Feb 6
Big news of the week was the geopolitical risk that came and went with Iran. We have seen events like these be dismissed by markets when optimism is running high and the current environment is no exception.
With expectations for growth remaining high in our view, we continue to favor themes that are less tied to those expectations and that we deem reasonably valued paying relatively high dividend yields. Cash/bond levels remain near historical highs across our model portfolios particularly in the growth class. We reiterate that the long anticipated Phase 1 signing will occur this month as will a waning of Federal Reserve money printing. That combined with mixed signals on the economy are reasons for our high cash levels.
For more insights see our website and disclosures found there at BCA. As always contact us for further explanation of how these events can effect your finances.