Trading and price momentum in the market overall is small and measurably positive. In my opinion, values, compared to last month, are higher for the style box, lower for sectors, and higher for world indexes.
At this time, growth stocks are outperforming value stocks, while the semiconductors and oil sectors are delivering better returns than the financials, utilities, and gold categories. Emerging markets, in my opinion, look more promising than developed markets.
Bond yields continue to be very low even with U.S. Fed reserve tapering (selling bonds) underway. US bond yields are lower for 10- and 30-year bonds.
This decreasing yield phenomenon is likely due, in part, to international turmoil in the Ukraine, Thailand and elsewhere. The U.S. bond market has less default risk than other sovereign bond markets.
My own analysis suggests long positions in: OTC, mobile telecommunications, technology, transportation, biotech, and Internet index funds. I also like mid-cap growth stocks.
DISCLAIMER: The investments discussed are held in client accounts as of May 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.
