|
|
 |
|
|
|
|
|
|
Quarterly Investment Strategy
2nd Quarter 2008 Investment Strategy
MBT invests its WMG Group clients in US and International equities exhibiting consistent earnings growth, reasonable valuation, and likely above-average return on investment. We prefer companies with strong balance sheets, a record of increasing earnings, and strong internal reporting safeguards. We adjust equity portfolios by overweighting S&P sectors poised for better performance relative to other market sectors, and we regularly reassess “buy” rated equities for relative valuation, earnings quality, and positive earnings expectations. Our individual equity and mutual fund models reflect this discipline, and we invest portfolios utilizing these options as well as Exchange-Traded funds to create well diversified equity portfolios.
For the 2nd Quarter we recommend overweighting in the Consumer Staples, Energy, Industrials, and Materials sectors and underweighting of the Financial, Consumer Discretionary, and Telecommunications sectors. We recommend neutral weightings in Health Care, Utilities, and Technology. We prefer equities relative to fixed income, however, we expect continued market volatility and economic uncertainty will require disciplined equity purchase decisions and tolerance of near-term price swings. We continue to allocate 59% of our equity position weighting to high-quality large capitalization stocks, and utilize alternative asset classes to mitigate some portfolio risk. We have reduced our cash position given the low yields available, and our fixed income holdings are focused on high quality short and intermediate- term holdings.
The 1st quarter of 2008 was grueling for most investors as equity markets were roiled by economic slowing in most markets and a pervasive environment of gloom. Bold moves by the Federal Reserve to lower rates and increase liquidity for lending markets were countered by rising inflation, energy and commodity costs. As we enter the 2nd quarter more turbulence is to be expected, and investors eagerly await corporate earnings announcements and the bottoming of the housing and credit markets.
|
The information above is not intended nor should it be used as a substitute for the advice of an attorney, estate or tax planner, whose advice should be sought to review your personal circumstances and goals. |
|
|
|
|