The Diversified ETFs portfolio is positioned defensively right now with half allocated to cash and short term bonds. The rest of the portfolio is committed to gold, commodities and long bonds.
I expect that the quantitative strategy will change to a more aggressive stance when the current short term S&P correction works through.
Earnings growth for our portfolio companies remains overshadowed by volatility and the manic-depressive behavior of the markets. Our portfolio holds considerable appreciation potential based on prospects of our businesses and the substantial relative value versus bonds.
With interest rates still low, there could be a boomlet in mergers.
Allianz SE (AZSEY) is an integrated financial services provider. The Company serves approximately 75 million customers in about 70 countries.
In 2013, the US Federal Reserve may need to reverse its quantitative easing programs.
