Trade Update – March 10, 2016
With all 3 of our tactical indicators (fundamental, valuation, and technical analysis) directing us toincrease exposure to U.S. Mid Cap stocks, earlier this week we raised exposure to this asset classacross all asset allocation strategies from underweight to equal-weight to the strategic target. Weaccomplished this by buying more IJH (IShares Core S&P Mid-Cap ETF). Funding for the purchasecame from cash.
Stocks over the past two weeks have benefited from seller's exhaustion and stabilization in the priceof oil. Stocks appear to be building a base after several weeks of volatility. The S&P 500 Index mayhave entered a temporary trading range, with the floor set by hopes for profit stabilizationencouraged by a weaker U.S. dollar and easier monetary conditions in the upcoming quarters. Ingeneral, recent economic data including last week’s February employment report suggest thatrecession risks have eased considerably. The preconditions for a sharp economic downturn indeveloped economies are not in place.
Andrew C. Zimmerman - Chief Investment Strategist
Notes: The DT Investment Partners’ Market Commentary discusses general developments, financial events in the news and broad investment principles. It is provided forinformation purposes only. The material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or aguarantee of future results. Investments in various asset classes entail different investment risks. For example, small cap equities tend to be more volatile than large or mid-capequities. International equities and emerging markets have exposure to currency fluctuations, foreign taxes, political instability and the possibility for illiquid markets. Fixedincome investments involve interest rate and credit risks among others. Real estate investing includes risks such as declines in value of real estate, changing economicconditions, tax laws or property taxes. Commodities’ investing is highly volatile and subject to changing economic conditions and the vagaries of speculators among other risks.Further, diversification and strategic or tactical allocation do not assure profit or protect against loss in declining markets. Index performance returns do not reflect anymanagement fees, transaction costs or expenses. One cannot invest directly in an index. Past performance does not guarantee future results.