A very interesting quarter comes to a close with significant questions still being debated in the market. Most important to strategy that will be described herein are, a) is the US equity market decline a garden-variety correction, or does it portend something more significant? b) Have interest rates increased too quickly too soon, or has a persistent trend only just begun? c) Why are emerging markets underperforming the US so dramatically?
Thus far in 2013, the financial markets can be characterized as US-driven almost entirely. Outcomes are highly disparate amongst markets with many showing significantly negative returns. With rates rising and many equity markets negative on the year, portfolio performance has been challenging. With six months remaining in 2013, a focused strategy, implemented in a disciplined fashion is required make the year a rewarding one. This report will attempt to lay the foundation of what that strategy will look like and on what tenets it will be based.