Sloy Dahl & Holst's Second Quarter Market Review
Portland, OR (PRWEB) July 22, 2013 -- Sloy, Dahl & Holst’s First Quarter Market Review held a prediction that interest rates would head up during the course of this year as there continued to be improvement in economic conditions. Therefore, Sloy, Dahl & Holst was (and still remains) bearish on bonds and gold. Both stances have proved accurate with gold down roughly 30% year-to-date and the 10-year T-Bill moving from a low of 1.63% to 2.5%.
There continues to be positive signs in the market overall; the S&P 500 posted its best first half since 1998, closing up13.82%, the housing market and auto sales continued to improve during the second quarter, and unemployment went unchanged.
It is further predicted there will be an increasing trend toward volatility, which surged in late June after Federal Reserve Chairman Ben Bernanke suggested the Central Bank could slow its $85 billion a month in bond purchases before the end of the year, if the economy is strong enough. That one comment drove the 10-year T-Bill up over 2.5% in a hurry.
The firm continues to overweight portfolios with Financial Services, Technology and Health Care, where all three of the model’s funds in those sectors have significantly outperformed the market. Concerns regarding Europe’s ongoing credit crisis and economic downturn remain. Volatility in the Pacific Rim is also still of concern, with Japan’s continued economic stall and the slowing in China’s super-heated economy reinforcing the current underweight position to these economies.
Sloy, Dahl & Holst continues to be overweight in stocks vs. bonds, with nearly 100% U.S. stocks. The five Model Portfolios have nicely outperformed their relative benchmarks for the first six months of the year. While there is an expectation of greater volatility during the summer months, the stated outlook and current allocations have clients well positioned for the second half of 2013.
Enjoy your summer! Thank you for your continued confidence and support.
Sloy, Dahl & Holst, Inc.
Ron Sloy, Sloy, Dahl & Holst, http://sdh-inc.com/, 503-248-9800, [email protected]
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