• / Free eNewsletters & Magazine
  • / My Account
Home>PCM Report May 2014

Related Content

  1. Videos
  2. Articles
  1. Markets and Economy: Put the Big Picture in Perspective

    BlackRock's Heidi Richardson, University of Chicago professor Randy Kroszner, and Morningstar's Bob Johnson tackle today's key macro issues--including employment, housing, consumer and corporate spending, the Fed taper, and much more.

  2. How to Make the Most of Your 401(k)

    In this special presentation, get the answers to key questions about the quality of your plan, whether your savings are on track with your goals, how to allocate assets, and what to do with assets when you leave your job.

  3. Johnson: Don't Fret the Fed

    The Fed has played a key role in nudging the recovery along, but the taper of bond purchases won't torpedo the economy, says Morningstar's Bob Johnson.

  4. Sharpen Your Portfolio Plan for 2014 and Beyond

    Roundtable Report: At the outset of 2014, Morningstar strategists dig into the market's current valuation and expected return, seek out high-quality U.S. and foreign stock opportunities, size up the role of cash today, assess the Fed's impact on the market, and reveal the best ways to fight inflation.

PCM Report May 2014

05/02/2014

Welcome to the first day of May!

We are seeing significant market impacting news stories the last couple of days. The more-abysmal-than-expected 1st quarter GDP was released followed by what we view as a surprising move by the Fed to reduce their tapering by 50% for the time being. This is the first signal by the Fed that they believe the weather-induced economic hangover could become more persistent than originally thought.

We were projecting in January that the 2014 market highs would occur in late April or early May and the market is essentially at new highs as we expected. We continue to believe a severe correction will occur this summer regardless of the pace of economic growth, to be followed by a market rally in the closing months of 2014.

While our team maintains a current outlook based on our macro and technical interpretations, we will continue to allow the actual movement of the markets to determine our position sizing and exposure.

We introduce a fresh look and format for the PCM Report this month. The format will return to research-focused content next month but we hope you enjoy the perspective provided through this month’s Q&A.

Warmest Regards,

Brian Lockhart, CFP
Chief Investment Officer
Geoff Eliason

 

blog comments powered by Disqus
Upcoming Events
Conferences
Webinars

©2014 Morningstar Advisor. All right reserved.