In this update we want to review how the strategy works, what the investor should expect, and how to best to use it in an overall allocation. The strategy is defensive in nature, focuses on the naturally defensive sectors of the market, protects from systemic risks with market hedges, has a compelling dividend yield, and…
Read BlogThe Federal Reserve minutes that was released on Wednesday of last week, sparked a rally in the market. We think the Fed is very likely to raise rates in December. In a less obvious way, the Fed has implied their target would be around 2% on the Fed Funds rate rather than the prior target…
Read BlogOur Dynamic Core Strategy works off of moving averages, or technical analysis, and has no fundamental input. As a result, if the trend is down, we are defensive, and if the market trend is up, we are invested. It’s easier to look at it like Index investing with some bear market protection. Please click the…
Read BlogAs we expected, the market did come down to the support level of 2020 on the S&P 500 but then on Monday it bounced off of this level. You can see from the chart the resistance is roughly 2060 on the S&P 500. Please click the link below to continue reading: Market in a Minute…
Read BlogWith the top of the technology bubble in 2000, there were a handful of large cap technology companies that drove a large percentage of the final move of the stock market. There were actually about 6 stocks, including EMC, CSCO, NOK, INTC, MSFT, and DELL. To continue reading click the link below: Market in a…
Read BlogThe markets have gone nowhere now for 11 months, as earnings and revenue growth have been weak. So far for the quarter, earnings for the S&P 500 are a little better than the original down -5% estimate, which is currently down -2%, but revenues are down -3% as expected. There has been a flight to…
Read BlogWe would have to say last week was very odd. As we have mentioned, the expectations were very low going into the earnings reports, so some companies were greeted with aggressive short covering when the quarterly reports were not as bad as expected. The technology sector was the big winner up 4.4%. Some companies are…
Read BlogWe have a list of all companies reporting earnings, last week it was only 2.5 pages long and this week it is 10 pages. About 30% of the S&P 500 reports earnings this week. From last week, the banks were generally better than feared. The banks are being well managed in a tough regulatory and…
Read BlogThis week we will begin to get a fair number of companies reporting third quarter earnings. The concern of the market is how much of the global economic malaise will impact earnings. Tuesday will be a very active day with Johnson & Johnson, CSX, Intel, and JP Morgan reporting. In fact, most of the big…
Read BlogWith the selloff in the market during August and September, as the S&P 500 fell nearly 13% from its recent high, we took advantage of that selloff, and opportunistically purchased quality companies with attractive dividend yields. Our current expected yield of 6.92% on the portfolio at the end of the third quarter is extremely high…
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