Friends in High Places

Most of our clients are keenly aware of the regimen and diligence we put into researching our investments and strategies. We try to share as much of that with our clients as possible to help them understand where much of our advice is derived from. We had some time earlier this week which we thought would be good to share with you. Recently, we had a unique opportunity from a research partner to talk to a portfolio manager of a well-known and large mutual fund. This is an opportunity that happens a handful of times over the course of a year but provides us with immense and differentiated insight into the markets and the economy. This fund manager specifically, is tasked with managing approximately $25 billion dollars across the specific strategy. At that scale, this individual has direct access to various corporate executives and political decision makers across the globe. It is an incredible opportunity for us to take our own research and thoughts and have them discussed with someone with this perspective. There were of course more than a few takeaways regarding the markets and economy. Some of the highlights include:

• This manager has been heavily overweight U.S. stocks and other assets. However, as economic data continues to improve overseas, this positioning has been unwinding and more investments are being made globally.

• The economic backdrop over the next 12-18 months appears to still be constructive for growth. There are plenty of reasons to continue to believe we will see growth in the economy over the near-term. The biggest driver is the consumer. People are still quite confident and data on spending and business confidence remain quite strong.

• There is some question as to the outlook for fixed income, considering rates and yields are so low. While this year has been strong, the outlook over the shorter and medium term may not be as good. While it doesn’t happen all that often, we always relish the opportunity to speak to these individuals who have incredible resources and connections. No one has a crystal ball on the future of the markets or economy, but this opportunity brings a unique perspective to our internal research efforts.

Connecting with these individuals remains a high priority to our research efforts. Their input directly helps us in our decision making regarding your investments. We will continue to update you with additional research efforts through our blog in the future.


The views are those of Robert Jeter and Eric Johnston and should not be construed as specific investment advice. Investors cannot directly invest in indices. Past performance is not a guarantee of future results. Investments in securities do not offer a fixed rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards. Investment Advisor Representative offering securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity.