Staying flexible and looking for opportunities

By Henry Ma, Julex Capital ManagementCovestor

U.S. equity markets closed out 2014 by holding onto their gains in December buoyed by a strong revised third-quarter U.S. economic growth of 5.0% and statements of continued monetary support by the U.S. Federal Reserve.

In my opinion, another positive is the continuation of dramatically lower energy prices, which may be a net positive for economic growth and jobs.

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Selloff

In December, the stock market experienced higher volatility environment with a minor selloff in the middle of the month.

However, toward the end of the month the Dow Jones Industrial Average broke through the 18,000 market and the S&P 500 Index finished the year on a strong note.

Developed international and emerging markets are still experiencing weak economic growth bordering on recessions that continue to prompt ultra loose monetary policy around the globe.

At Julex Capital, we maintained a “risk on” stance for the Dynamic Factor and Dynamic Income portfolios during December.

Dynamic Income held broad tactical positions in high dividend stocks, REITs, and broad bonds.//

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