Monday, November 24, 2014

Still a bull market although one should be bit cautious

I think we are still in a Risk-On environment. That doesn't mean its a very stable one. I mean the profits growth has really come from cost cutting, margin 
improvements hasn't been solidly based from revenue growth, top line growth, pricing power, its also been a big PE play. Last year two-thirds of S&P was from PE expansion. 

Its not the kind of stock market you'd say you wanna buy and forget about it. In portfolios we manage we take a very defensive position on stocks, in other words we look at things like Utilities, Consumer Staples, Healthcare, things that people are going to buy regardless and also have above average dividend yields.