This strategy currently owns semiconductors, aerospace & medical devices with a year-to-date return of 9%.
The trend of the market is starting to turn higher after experiencing eight weeks of a mild pull back. Positive corporate earnings reports this month should bring good news to the market.
With the vaccine rollout going well, the continued re-opening of the economy, and the anticipation of a very busy summer travel season…I have high expectations for strong economic growth over the next several months.
In an environment of rising interest rates and market volatility, our defensive strategy performed well during the 1st quarter of ‘21.
The 10yr treasury rose and stabilized at 1.67% after dropping to a low of 0.51% in 2020. I expect rising rates to continue, which will have a negative impact on bond valuations. Thus, we continue to hold bonds with short maturities/duration.