Our interest remains focused on the tech and healthcare sectors as earnings unfold and companies offer some view of how they see the progress of economic recovery. Democrats and Republicans will likely soon wrestle through a further stimulus package, since neither wants to disappoint constituents ahead of an election season that is likely to be bitter and fierce.
We are attentive to rotations, and while commodities are sparking some interest, we do not yet see signs of an enduring change in leadership. A sensible risk barbell at this juncture, we believe, would include continued allocations to the high-growth tech-focused names, a gold hedge, and exploratory attention to tech- and trade-focused commodities such as rare earths, as mentioned above.
The most important factor remains the abundant stimuli entering the financial system from governments and central banks. “Don’t fight the Fed,” and add on dips to preferred themes.
Thanks for listening; we welcome your calls and questions.
