SUMMARY. The recent Covid-19 fears combined with election uncertainty continue to weigh on markets. However, we deem this the LAST of the Covid-19 fear and going forward we expect fears to SUBSTANTIALLY subside as we go into 2021. Election issues aside we expect economic growth to continue into 2021, the extent of which will depend on whether existing policies remain.
INVESTMENT IMPACT. Our model portfolios especially in the growth oriented ones have shifted to cyclical names much of which are tied to reopening and retail/ leisure. This week we saw that weighting increase, resulting in OUR HIGHEST EQUITY WEIGHTINGS and lowest cash weightings in some time. Much of the model portfolios are designed to be positioned to potentially benefit regardless of the election outcome with a mix of sectors that would benefit either way with the degree to which dependent on the who wins. We expect to re-weight portfolios upon the outcome reducing healthcare & increasing retail exposure under a Trump win and under a Biden win reducing retail/ leisure and increasing "green energy" exposure names.
Our model portfolio performance has been updated on our website as of 10/05/20.
For more insights see our website and disclosures found there at BCA. 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.