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Daily Blog

Tuesday, March 20, 2018
Returns for a globally diversified strategy over the last 10 years refute the notion of a “lost decade”.

The S&P500 tech sector is still leading in performance for the year despite some companies getting slammed over privacy concerns and misuse of personal data. Political agents have been purchasing consumer data long before social media was created. But in the last decade, big tech firms upped the game in monetizing consumer information and have been handsomely rewarded with high revenues and earnings. Investors began to think the sky was indeed the limit when it comes to big tech stocks. The tech sector posted double digit earnings growth in each quarter of 2017, is forecasting 16% growth in earnings for 2018, and returned more than 30% in the last 12 months – justifying its higher than average valuation.
However, this should be a wakeup call to investors who were heavily concentrated in FAANG giants. Global diversification is always a good idea to help mitigate volatility. In fact, diversification is the only free lunch you’ll ever get, because when it comes to the internet, if the service is free, you are the service. Data mining will continue to be profitable for marketers, politicians, and merchants and technology will continue to get better and, hence, more invasive. Perhaps the next tech growth opportunity will be oriented toward shielding personal data stalking. Please see an example of a globally diversified portfolio on page 4 of the Global Perspectives book.

Weekly Commentary & Statistics

Monday, March 19, 2018

Media commentary seemingly continued to cue equity markets as major U.S. indexes finished the week lower. Gold lost ground and oil climbed. The U.S. Treasury note finished the period at approximately 2.85%.

Monthly Commentary & Outlook

December 2017

In our view, the economy is experiencing a marked shift back to free-market capitalism, rewarding private risk-taking. That inspires growth.

  • Pro-business tax cuts are the icing on the cake of a strong global economy
  • The United States, China and Europe are the “big three” that will drive global growth
  • Amid market complexity, it is best to focus on the ABCs of economic growth
  • Productivity to regain its mojo, even as inflation struggles to regain its luster
  • Currency stability of the big three is the base case but tail risk might wag this dog
  • Global diversification will dominate U.S.-centric investing for a second straight year

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