US markets continue to thrive in a low interest rate environment. Jobs continue to increase as do wages and I expect to see inflation in the market next year. For the first time in several years there is some exuberance in the market. I will be more and more cautious after the 1st quarter of next year and expect more volatility at that time.
We are analyzing opportunities at the turn of the year to upgrade emerging market equities.
Overseas economies have hit their bottom. This will provide an opportunity to increase the international allocation. This will include some emerging market positions that have been light in the portfolio for the last 2 years.
However, we still believe that the U.S. equity markets remain the most favorable, all things considered.
we remain to have overweight in:
military defense, finance companies, home builders, and retail.
Regarding fixed income, we are harvesting some profits with the recent decline interest rates and increasing our allocation in high quality investment grade fixed income.
Chief Investment officer
Cooper Capital Group