Updated: Feb 6
This past week up until Friday was relatively quite as we headed into earnings season. We view the latest concerns over the Virus from China (like many other events) noise in respect to long to medium term global growth. However, with expectations euphoric, like in past events, its used an excuse to ratchet down extended expectations. The over riding driver of growth is unprecedented liquidity reintroduced via money printing by the US FED which will wane, but not cease through 2020. Going into 2020, our model portfolios had reduced exposure to Asia which under performed this week as well as continue to maintain cash/bond levels are at historical highs across our model portfolios particularly in the growth class. We did however add slightly to some positions that presented value and are dividend paying.
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.