"Analysis Without An Agenda"
"The Last Will Be First and The First Will Be Last" Matthew 20:16

Equity Bubble Has Run Out of Excuses and Time

It is finally going to be a make or break earnings season for stocks. This is because the justification for record high stock prices that have been perched atop extremely stretched valuation metrics has been...


Focused Sector Performance

Here is a quick scan of the market sectors we follow. A few observations stick out to us.

  • Basic Resources had a tough time keeping up with the major indices in Q1 Unsurprisingly, a strong dollar is a difficult backdrop for resource sectors.
  • Chemicals topped the list, and these were the broad category of chemicals, not solely the Agricultural chemical widely used in fertilizers.
  • Utilities did rather poorly, although the index figures to do include dividends, which provide a substantial part of their total return…..particularly in pipelines. We feel this wide underperformance could be chalked up to natural gas prices being at multi year lows and to the wide swings in oil prices, as these trade in sympathy to energy unit pricing. Rising U.S. Treasury yields during the quarter also put pressure on dividend paying securities.

Focused Sector Performance
01/01/2012 - 03/31/2012

The returns for Indices, ETF’s and Stocks do not reflect dividends and are based on the last sale for the date requested. Data courtesy of Dorsey Wright.

Pento In The News

Investments are not FDIC insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested.
Securities offered through Charles Schwab Institutional Brokerage.
© 2012-2016 Pento Portfolio Strategies, LLC A Registered Investment Adviser, All Rights Reserved, Member FINRA

Pento Portfolio Strategies | 291 Rt. 34 North | Colts Neck, NJ 07722