SUMMARY. Sentiment continues to see saw between growth and value stocks tied to perceptions of the pace of vaccines and economic reopenings as presidential election cloud grows.
INVESTMENT IMPACT. We continue to look past the current market sentiment into positioning client model portfolios for the coming year. The large valuation gaps as outlined in prior newsletters on growth vs value is driving this as well as our expectations of normalization of consumer behavior as vaccines get released in coming months. Our holdings include an significant overweight in Brazil (notwithstanding the country's debt & fiscal constraints) where significant underperformance in 2020 has been born from Covid-19 (and now that and political uncertainty due to fiscal constraints) which we expect like in US to subside upon vaccine availability. Overall we are positioned for the value segment of markets (stocks tied to reopening such as retailers, banks etc) to normalize valuations with growth sector in 2021 and avoidance of technology segment.
Our model portfolio performance has been updated on our website as of 9/04/20.
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