Updated: Feb 6, 2020
This past week it was relatively quite as we headed into earnings season. Banks reported earnings largely ahead of expectations which drove optimism even higher for growth this year. On Friday, we increased cash levels even further tied to elevated optimism levels. Economic indicators for the week were mixed in the US and the Fed revealed that starting in February it will REDUCE its money printing by $5B/month (which isnt much given the magnitude in total.... $500B since Sept).
With expectations for growth remaining high in our view, we continue to favor themes that are less tied to those expectations of economic growth and that we deem reasonably valued paying relatively high dividend yields. Cash/bond levels are at historical highs across our model portfolios particularly in the growth class. The waning of monetary money printing co