When interest rates, rise bond prices fall. From May 2013 through December 2013 interest rates rose from 1.6% to about 3.0% on the 10 year Treasury. During this period bond prices fell around 20%. The U.S. Economy is growing around 2%, generally speaking, and inflation appears to be normalizing around 2%, getting us nominal GDP…
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We are up in a down market (PVG Tactical Total Return +0.59%; S&P 500 -0.24%*), as the market fell in January and the first part of February we protected the portfolio with inverse ETFs and then took the hedges off and allowed the portfolio to rally when the market bounced. We have recently started to…
Read BlogWe have put together a comprehensive white paper on asset allocation and specifically how to implement tactical asset allocation. We believe you will find this very helpful. Please take advantage of this research. PVG Tactical Asset Allocation Guide
Read BlogWe have discussed how to use our Loss Averse Equity Income in an asset allocation in the past. We thought we would do it again as we are still getting questions as to why we did not perform like the equity markets in 2013, and how to best use the strategy in a portfolio. We…
Read BlogPlease find enclosed a presentation which covers both fundamental and technical analysis of the markets, and the concerns we have for 2014. As a summary, we believe both the equity and fixed income markets have valuation issues, which investors need to be aware of if they are investing. We believe investor expectations are very lofty,…
Read BlogWe have made only minor changes in the portfolio during November, reducing our hedge by approximately 4% and our cash moved up by about 5%. Most of our technical and fundamental indicators are very cautious regarding the equity and fixed income markets. We believe the markets have been driven primarily by very aggressive Federal Reserve…
Read BlogOur Equity Income Strategy had a good month in October, up 1.29%. The sentiment has clearly gotten very bullish lately as bulls out number bears 3 to 1. This type of excessive bullishness is associated with market tops. Our three year view of the market is for a flattening of returns, with both bonds and…
Read BlogPat Adams, CFA (PVG’s CEO and Portfolio Manager) was quoted in USA Today’s article “Is the Fed inflating a stock bubble?”. “We believe a bubble is developing in stocks,” says Patrick Adams, portfolio manager at PVG Asset Management. “Fed policy is forcing money into (stocks), pushing forward returns that would have come in future years….
Read BlogFinancial advisors and clients have a tough job with managing their expectations and financial needs with the underlying fundamentals and risks of the financial markets. It may seem like an impossible task at times. After all, we are only human, and it is a human instinct to be greedy at market tops and conversely, believe…
Read BlogStocks, Particularly the High Yielding, Still Preferred Over Bonds Our economic view was well expressed last week by John Williams, president of the San Francisco branch of the Federal Reserve when he said: “We’re seeing an economy that continues to grow,” but “The growth is frustratingly slow.” Deleveraging of both private and sovereign debt and…
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