Quarterly International Economic and Market Overview Q4 2014
Going into Q4 2014, a period with historically positive stock performance, we removed the high-dividend tilt to our portfolios while increasing our currency-hedged exposure to Japanese equities. However, for the first time in over 3 years we have now moved equities to a slight underweight position. As the US economy has accelerated, so has the market P/E multiple expanded to uncomfortable levels as most ‘bears’ have capitulated. Currently priced, we have come to the decidedly nonconsensus view that US equities will disappoint this year. 12_2014_CFAL_Quarterly_International_Economic_and_Market_Overview-3 Click here for full Weekly Market Recap

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