Below are the returns of five major indexes through the first quarter:
BarCap US Agg Bond +0.82%
S&P 500 +6.07%
Russell 2000 +2.47%
MSCI EAFE (Europe) +7.25%
MSCI EM (Emerging Markets) +11.45%
Sloy, Dahl & Holst, Inc. expects another solid earnings season ahead. Though many investors are nervous, it is vital to remember this: the markets tend to disappoint the majority.
We have stuck by a handful of major themes over the last few years with allocations. These include: protecting against a rising rate environment, the attractive upside potential of Financials and Energy, and the long term value within international markets. Investors who have been patient are starting to see these themes turn together. It is important to remember that patience will always be rewarded.
Above and beyond The S&P 500 has been the best performing index of the last seven years. This is great for investors, but it is also vital to remember that this run comes on the heels of a decade of being negative year over year. This is proof that investment cycles can take a long time to pay out, and that reversion to the mean is real. As many investors continue to chase the S&P and push the theme of Passive/Index investing, Sloy, Dahl & Holst, Inc. will continue to act contrarian. Our tactful move into Passive investing will bode well for active management and the allocations of our portfolios.
As always, we thank you very much for your support and confidence. Please feel free to reach out to us directly if there is anything we can do to help or questions we can answer.
Sloy, Dahl & Holst, Inc.