Valuation factors are modestly negative even though interest rates are quite low and the Federal Reserve has pledged to keep them there for some time.
Strategies
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The Fed’s QE3 announcement is welcome by a lot of people on the Street, but not many retirees on Main Street.
Many people age 22 don't care about money: They expect to inherit it. For most, that's a very poor assumption.
A contrarian might take a look at their lack of strong conviction and see it as a bullish signal to tack on a little risk for the last quarter.
Increased consumption, lower business expenses and consistent tax rules will get the economy going again. None of that is happening right now.
China's economy is unlikely to have a hard-landing and demand for luxury brands like Ralph Lauren will remain relatively resilient.
This move makes sense because of the downside volatility and flat performance exhibited by this asset class over the summer.