This newsletter updates the main ETF rankings and the composition of all our Premium Portfolios. If you want to access their holdings updated for the month of February 2013, please login or upgrade your membership to a premium plan.
U.S. Equity Markets had their best January since 1997, bringing the main indexes closer to the all time high reached in late 2007. Factoring in dividends, the Dow Jones Industrial Average and the S&P500 are indeed already at their best level higher. The VIX (volatility index used as a proxy for risk aversion) decreased to its lowest level in more than 5 years. In this favorable context, our 3 Premium Portfolios have performed well, with the Platinum Portfolio up +3.1%, the Aggressive Portfolio +2.9% and our more conservative +1.9% (while keeping 45% in cash).
This may seem odd to many investors, given that the recovery remains subdued, as was once again illustrated by the recent abysmal GDP growth number for the last quarter. In addition, although tail risks have diminished, downside risks to global growth remain significant: unresolved fiscal issues in the U.S., still struggling euro area expected to extend its recession in 2013, and increasing structural challenges in emerging markets. Still, corporate profits remain strong, and a majority of U.S. companies that have already reported earnings have beaten expectations.
Click the link below to access the February Newsletter, now downloadable (and easily printable) in PDF Format!