Strategic Income Fund with an excellent monthly return of 1,10 % in September. Year to date performance plus 4,58 %. Our indicators have correctly kept us fully invested this year in face of numerous warnings by others that a market correction is overdue.
We still have any evidence to change our bullish outlook.
Fact is that most of the major equity indices are trading at or close to all-time highs. From a fundamental point of view, there is little doubt that surprisingly strong earnings have been the primary driver behind these rising prices.
The Fed will normalize interest rates. The hurricanes may slow the Fed’s inclination to boost rates. The yield of the 10year treasury bond is rising slowly but steadily. If the 200-days-mooving average at 2,32 % will be topped the way to this year’s high at 2,61 % is to be expect.
The US Yield Curve is becoming steeper. Interest rates at the long end are rising faster than short term rates.
Different indicators like US-purchasing manager index or the ratio nondurable goods vs. durable goods as well as different others are at top levels and give us comfort that we will not see a big correction shortly.
In the absence of an unexpected and significant geopolitical event, there is ample reason to expect that the bull market will persist.
Our view continues to be that a significant market decline is not likely before a period of euphoria characterizes investors sentiment, which is typical for the final phase of a multi-year bull market.
Our clients should take comfort in knowing that their money is being managed in accordance with a disciplined, time-tested methodology that has weathered many storms over its more than 25-year history.
More Information: Strategic Income Fund