The last few weeks of less than flattering economic data are a reminder that the economy has a long way to go in this recovery.
A great deal of focus has been placed on the U.S. consumer, which amounts to roughly 70% of GDP over the last 50 years, and approximately 48% of the first year past recoveries. But now more than ever, the U.S. consumer is shouldering less of a burden.
Emerging markets share of global consumption has eclipsed that of the U.S. consumer.
A nice reference guide that covers 2010 contribution limits for 401(k)s, 529 college savings plans and other qualified plans, required minimum distribution information and retirement plan rollover rules.
Source: iShares
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U.S. Stocks with Heavy Foreign Exposure: Company Listed followed by its % of Sales Outside North America
You may be surprised by how big your foreign exposure is, or how small your domestic exposure is, when looking at your portfolio of individual securities, or what securities your mutual funds may hold.
Ibbotson’s Quarterly Market and Investment Strategy Commentary is now available for our clients. For a PDF of this report, please email us at info@kaizenwm.com.
Despite and impressive run in equities, $375 billion moved into bond funds, and $9 billion exited equity funds. Our concern is that investor behavior is once again the culprit and this inflow/outflow occurred after the equity pullback early in 2009 – causing this.
Chart: J.P.Morgan Asset Management
Historic Tightening Cycles
Last week, the FOMC reiterated its decision to keep short-term rates low for an extended period of time; however an eventual move toward tighter monetary policy warrants a look at historical tightening cycles.
In all of these cycles, bond investors have experienced poor or even negative returns. Now may not be a good time to be overweight bonds.