We’re sharing our rationale for recent investment changes. Integras Partners manages multiple strategies for graduated timeframes. Each client has a unique blend of accounts tailored to their goal timeframes.
With most of the election uncertainty lifted, markets are more focused on stimulus and the pandemic. Euphoria over vaccines and the reality of escalating virus spread drove dramatic lurches this week. We’re also seeing swings between the Growth Sectors (Technology, Communications and Pharma) and Value Sectors (Energy, Industrials, Materials and Financials).
While some are reacting in fear, we are positioning for a full reopening of the economy and strong job recovery over the coming year. There is much more opportunity for appreciation in Value (than in highly-priced Growth) that we believe will be largely realized next year, starting in the Spring.
This will not be a smooth ride, but our clients are generally calm, as our growth investments are insulated in long time-horizon strategies, complemented by conservative accounts providing for shorter-term anticipated cash needs. Markets move on fear and greed and another lockdown is possible, given current infection rates. Yet, as we’ve seen recently, any positive news related to vaccines causes a meaningful upsurge and another move from growth towards value occurs. We believe recovery within these sectors is coming and our clients are comfortable knowing the benefits of our layered paradigm.
Moves: We switched from an unmanaged small cap index fund to an actively managed and top rated small company fund, as we believe intensive research and security selection will provide additional returns. We also addedspecific exposure to the industrials and materials sectors to capture upside opportunities in a broad economic recovery.
We are always paying close attention to economic and market dynamics, keeping our clients and blog followers informed as we identify opportunities and risks to avoid.