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Notes to myself, possibly of interest to others.
-- Bill Northlich

Thursday, March 31, 2011

Rosenberg Strategies for a Volatile Range-Bound Market

In sum, the six strategies I think are going to make the most sense this year in terms of generating solid risk-adjusted returns are going to be first, an emphasis on large cap and mid cap equities that have, once again, strong balance sheets, payout a consistent dividend stream, stable earnings growth, have relatively low correlations with the U.S. economy. We remain in the camp that believes higher- quality equities will provide more sustainable returns over the intermediate run.

Secondly, commodities, especially the energy sector as well as precious metals, as a hedge against recurring weakness in global currencies makes imminent sense. We’re also constructive on agriculture.

Thirdly, again fixed income securities, especially corporate bonds. We continue to see tremendous opportunities in the high-yield sector in particular.

Fourth, classic diversified hybrids that have low volatility, yields that exceed what anyone can get in the government sector.

Fifth, capital preservation strategies remain a cornerstone.

Lastly, once again emphasis on Canadian dollar investments, as well as a diversification towards the faster-growing emerging markets.

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