“While we acknowledge the increased risks represented by the coronavirus and rising Middle East tensions, the global economic landscape is notably more positive entering 2020,” said Alan Gayle, president at Via Nova Investment Management.
“Moreover, earnings prospects are improving and central bankers intend to keep interest rates low, which supports a higher stock market. We plan to maintain our increased equity exposure at least over the near term.”
"The U.S. reliance on global trade is lower than that of our trading partners, and that lower relative exposure has been a benefit to domestic markets.
"The preponderance of negative bond yields outside the U.S. along with the relatively stronger economy here at home makes us prefer domestic bonds.
"Monetary authorities are doing all they can to support economic growth, and this is appreciated by the equity markets. That said, the risks of a fiscal policy misstep are mounting, and that could overwhelm actions by central banks.
"Our asset allocation strategy will be driven most by developments in the U.S.-China trade war, but a Brexit deal or the emergence of German fiscal stimulus would also affect our investment allocation."
"We are in a battle between facts and fears," said Alan Gayle, president at Via Nova Investment Management. "The facts are a strengthening economy with increased employment, earnings and spending which is helping to fuel impressive sales and earnings growth for companies. The two main fears are how fast the Federal Reserve will raise interest rates and how far trade tensions will escalate. These risks have grown in recent months."
“I don't think that the 3 percent level necessarily makes bonds a buy,” said Alan Gayle, president of Via Nova Investment Management in Fredericksburg, Virginia. “I don't think investors should be abandoning stocks when the economy is growing and earnings are up roughly 20 percent from a year ago.”.
"2018 is shaping up as a year when we’ll see tension between economic strength and the policy reaction to that...
By March, we should start to see some traction from tax reform,” says Alan Gayle, president at Via Nova Investment Management, a registered investment advisor. While working Americans already have seen some benefit in their take-home pay — which could translate to more spending — publicly traded companies still are “digesting the nuances” of tax reform, he adds.
