We favor large caps, overseas markets and energy MLPs

By Henry Ma, Julex Capital Management Markets Covestor

The positive trends that started in September and October persisted through November as fears of the quantitative easing tapering by the U.S. Federal Reserve faded.

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November showed continued market strength with strong investment returns across developed equity markets. U.S. small and large cap equities continued their market leadership and international developed markets also showed good gains.

The emerging market recovery paused during November as returns were mostly negative, with the major exception being China. Fixed income markets ended with mostly modest negative returns.

The Covestor Julex Dynamic Focus portfolio maintained a “risk on” signal during November with overweight positions in U.S. large and small cap equities, developed international equities, high dividend stocks and energy MLPs contributed to positive returns.

For December, I continue to be “risk on” and continue to favor U.S. large and small cap equities, international developed markets and energy MLPs.

In emerging markets,I continue to be fully invested. Within the U.S. equity arena, I have maintained dynamic overweights in cyclical sectors and also added new exposure to the technology sector.

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Disclaimer:  All investments involve risk and various investment strategies will not always be profitable.  Past performance does not guarantee future results.