So, after a 1% move on a relatively quiet trading day yesterday, we’re taking the chance to look back and see what’s worked over the last 2 months. We are looking to break the 2015 trend of virtually nothing working according to expectations.
As you all know, we are value players in our income portfolios-we like to buy titans on sale. Recent examples include Ford under 8X, and Cisco under 14 X. Both exceedingly profitable, and unlikely to be the first up against the wall in the event of panic.
This has played out well for us. The S&P 1500 Pure Value Index is up by about 1.8% year to date, while the Pure Growth Index is down over 4.4%.
What this means down on the ground is that we will be reaching out to those of you that should consider moving from index-based portfolios to individual equity portfolios. This is not suitable for every one of our clients, but there are definitely those for whom indexing is not the end-all be-all.