A Brief Update on Portfolio Strategy
The election is over. And with it the relentless abuse of political advertisements and campaign bashing comes to end. So now what? Investors woke up November 7th to a sea of red as Mr. Market began to consider the implications for “four more years.” But was this price action a leading indicator of things to come? We think the answer depends on your time horizon and as such, this letter will serve to outline both our near term market predictions (i.e. essentially educated, but incredibly popular, guesses on short term market direction) as well as our long-term portfolio strategy (i.e. strategic asset allocation that drives the great majority of portfolio returns, but puts most investors to sleep).
Please see the letter below on our latest thinking as well as an update on current portfolio construction.