December, 2013 PCM Quant Coalescence
The December reallocation remained committed to US equities. The PCM Global Tactical Index maintained US equity exposure to industrials, healthcare and the broader equity market, while adding exposure to technology and the DAX. After hitting all-time highs at the end of November, the PCM US Industries Total Return Index kept 25% in medical devices, while moving the remaining three positions into aerospace and defense, US industrials and insurance.
The PCM US Bond Index remained committed 25% in each of: 1-3 year US Treasuries, 3-7 year US Treasuries, and high yield corporates. The remaining 25% weighting is in the inverse 20 year U.... Read More..
We will more than likely see the Fed continue its asset purchases for the remainder of the fourth quarter and probably into the first quarter until February when Janet Yellen chairs the first Fed Board meeting as Ben Bernacke's successor. The current accommodating and dovish monitory policy is bullish for assets such as stocks. Unfortunately, corporate earnings and slower than expected GDP growth will likely apply downward pressure in the fourth quarter. Thus far the Fed's easy monetary policies have been able to keep the U.S. Stock Market on an upward trajectory for 2013, in spite of negative headwinds and a less.... Read More...
Provident Capital's Absolute Indexes are now available on www.morningstar.com for registered Morningstar Direct and Morningstar Office users.
Provident Capital's composite performance and investment indexes are available on Informa.
Provident Capital's Indexes are now available on Lipper