Pacifica Partners’ January 2011 “Investment Strategy Notes” is intended to provide our market outlook with a higher level of technical detail than our Financial Post column or Investment Compass Quarterly Newsletter.
The accompanying strategy notes summarizes our observations on the equity and bond markets. Unlike previous comments, we have devoted more commentary to economics specifically to the US unemployment situation (getting better) and global inflation emerging market imbalances (getting hotter).
US equity markets are fairly valued, not expensive; not cheap but not out of line with historical tendencies at this stage of an economic recovery. We continue to reiterate the case for US large cap companies especially the very largest companies in this segment.
GDP estimates have been revised higher as those in the double dip/deflation camps are revising their thoughts–with some exceptions.
Our caution on the gold sector over the last few months has been warranted and now rewarded and valuations are starting to become very attractive faster than we thought they would given the size of the declines in gold stocks so far this year.
This report is for information purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. The information contained in this report has been compiled from sources we believe to be reliable, however, we make no guarantee, representation or warranty, expressed or implied, as to such information’s accuracy or completeness. All opinions and estimates contained in this report, whether or not our own, are based on assumptions we believe to be reasonable as of the date of the report and are subject to change without notice. Past performance is not indicative of future performance.Please note that, as at the date of this report, our firm may hold positions in some of the companies mentioned.
Copyright (C) 2011 Pacifica Partners Inc. All rights reserved.