|January 1, 2019||
What is your outlook for the U.S. equity market for 2019?
Our global tactical asset allocation (GTAA) model still signals a relatively bullish outlook for the U.S. equities. Strong readings in sentiment and valuation indicators outweigh weaker technicals and recent price pullbacks.
In 2018, the U.S. economy enjoyed a banner year with real GDP annual growth rate on track to increase by close to 3%, which is the strongest gain of the nearly decade-long expansion. We believe the deficit-financed tax cuts and government spending increases will continue to help the economy grow much of next year. We also expect the labor market to continue to grow and unemployment to stay low by historical standards.
Despite these positive signals, we do recognize some possibilities of weakness moving forward. The stimulus effect might fade and put downward pressure on the market in the longer term and diminishing labor supply might result in gradually decreasing prices. The ceasefire between the U.S. and China may indicate that the worst of the escalations are behind us. However, the trade tension remains and might contribute to equity volatility. We do expect some market volatility to continue through 2019 despite our model indicating that the odds of a near-term recession remain relatively low.
|June 23, 2015||
Lannet Company (LCI) has excelled in the portfolio since its original purchase on July 21, 2014. In less than a year, the stock has returned +58% in a period where the S&P500 has returned +8%. Recent activity and quarterly earnings announcement have led to increased volatility over the quarter. After a moderate correction in April and company acquisition announcements in May, the stock price has increased +13% within the last 30 days.
|April 6, 2015||
Small-cap and mid-cap positions played a major role in the strong start for Vista.
|January 1, 2015||
NorthCoast’s newest separate account offering provides a fully invested
strategy selecting stocks at a reasonable price.
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