Report Detail Summary

The LJE Asset Allocation Process: Second Quarter Performance and Third 2019 Outlook

June 30, 2019

The third quarter outlook calls for the middle of the yield curve to outperform the short end. In line with our expectations, we will slightly increase the duration of the fixed income portfolio. The outlook also calls for the fixed income component to underperform the equity component of the portfolio. Within the equity side, we look for the international stocks to underperform the domestic stocks. Domestically, we expected the small-cap stocks to underperform the mid-cap and large-cap stocks, and the mid- caps to outperform the large-cap stocks. In turn, we expect a slight style bias in favor of growth stocks. The expected outlook leads us to decrease the fixed income exposure of the portfolio. Collectively, we expect the international stocks to underperform the U.S. Thus, a decreased exposure to international equities favoring domestic stocks is warranted this quarter. Net the effect of the increased equity exposure combined with the reduced international exposure resulted in a slight decrease in the international exposure. Within the international group the process yielded a slight increase in the allocation to the developed Asia/Pacific, Emerging and Frontier market regions. Domestically, we increase exposure to the. mid and large-cap stocks and reduces the exposure to the small cap stocks.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format

Copyright © 2018 La Jolla Economics All Rights Reserved
Legal Disclaimer - Privacy Policy - Contact Information - Login



The ValueTiming™ strategy is based on the assumption that politicians and policymakers have particular views of the world, and that they will in general adopt policy measures that are consistent with these views.


Economic Disturbances and Equilibrium in an Integrated Global Economy

Cocktail Economics: Discovering Investment Truths from Everyday Conversations

Understanding Asset Allocation: An Intuitive Approach to Maximizing Your Portfolio