SUMMARY. With election uncertainty continuing (despite the media narrative) and optimism running high on vaccine and fiscal stimulus front (despite current trends arguing the opposite with lock downs & congressional stale mate) we continued the trend towards conservatism in regards to growth in 2021. Although we agree we may have a fast start out of the gate growth wise depending on stimulus & vaccine availability there remains very high political uncertainty and negative growth polices implications (see prior newsletters) for later in year.
INVESTMENT IMPACT. Although we continue to be positioned for better economic growth in 2021 particularly in 1H21 we are growing concerned about valuations, high levels of optimism and the potential for growth headwinds in late 2021 & beyond. As a result, we significantly added to those areas (utilities & gold) that we believe may offer less correlation with the market in the event of a decline. Further, we significantly reduced our technology exposure and lessor extent in stocks tied to reopening of the economy again tied to covid-19.
Our model portfolio performance has been updated on our website as of 11/30/20.
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