This week I wanted to go a little more in depth about portfolio positioning.
We have started to see trade tension escalate more and more, and we have also started to see an impact on U.S. farmers.
Emerging markets have started to suffer from this.
For instance, Turkey has been suffering pretty significantly over the last few days and investors are fearing that this is going to spread to other emerging market countries.
Additionally, interest rates seem to be on auto pilot on the way up which is pretty restrictive for growth.
As we’re exiting earnings season we believe volatility may start to pick up as well.
A lot of these risks are in our mind very short-term, and because of that we have moved into cash and defensive positionings.
We’d rather be safe than sorry.
In our mind, we’d rather give up a little bit of upside to protect against significant downside in the short-term.
However, we do believe that if the markets do reprice, we’re going to have a good position to buy some great bargains as we do see fundamentals as really strong and we see a really strong U.S. economy generally.
So our medium-term outlook and our long-term outlooks is actually very positive.
Have a great weekend!