Schwab Sector Views: The Building Blocks
This space is most often devoted to discussion of our tactical moves, designed to potentially benefit from near-term trends and development in the economy and the market. But we also note that investors should only move around the edges of their portfolios in making these tactical moves, while leaving the core equity investments diversified among all ten sectors. Assuming this has occurred, we recognize, it may be a bit of a leap so we decided to take a step back and discuss why we believe its important to start with a good base, and some things to look for as you build the foundation.
After you've determined what percentage of your overall investable assets should be invested in domestic equities, according to your risk tolerances and time horizon, then you can set to work making sure those equities are appropriately distributed among the ten sectors. Below, you'll find a table that breaks out the sectors according to how S&P does it. We think this is a good starting point as it tends to be a good representation of market capitalization and economic impact. But here's where it can get a bit tricky. Depending on the vehicles you choose to invest with, determining the actual sector allocations can require a little extra work, but we think it's worth it. Individual stocks and sector specific ETFs and mutual funds are relatively easy to place, and there are some great tools on Schwab.com that will help to do that. Where investors can get tripped up, however, is with broader funds. Actively managed funds and certain ETFs have relatively wide ranges they can operate in with sectors. It can be quite easy to become out of balance without even knowing it by not paying attention to what the funds you hold invest in. It's important to do a little extra work, the information is usually readily available, to determine what your funds are actually holding and allocate it appropriately.
Doing this, while taking a little extra time in some cases, can help to maintain a diversified core of your portfolio, which we believe helps to smooth out the inevitable roller coaster ride in stocks to some degree. No one can predict the future, so making huge bets on sectors, knowingly or unknowingly, can carry big risks, that could impact your ability to achieve your financial goals. Then, knowing that you have a good foundation to build on, you can start to "decorate" your investments with small, tactical sector bets, which we try to give you guidance on through our sector recommendations that follow.
We strongly suggest looking for more details on all of our specific sector views and information on our outperform and underperform ratings by reading the expanded analysis below, and then making adjustments to portfolios as you see fit. One final note: Our tactical recommendations change quickly at times as we continually monitor economic progress and factors influencing individual sectors, so check back often.
Source: Schwab Center for Financial Research and Standard and Poor's as of November 11, 2013.
Even though the consumer discretionary sector has posted stellar gains to this point in the year, we continue to believe there will be more upside over the next few months, and are holding our outperform rating on the group.
Attention in now squarely on the holiday shopping season. Estimates have largely been for some tepid growth over last year, with the rate projected by ShopperTrak to be the slowest since 2009. Rather than concern, we view this as an opportunity for the sector to climb a "wall of worry" and outperform reduced expectations. Headwinds certainly remain, as they have throughout the year but the consumer has largely taken these issues in stride, while it appears retailers have been able to manage inventories and keep costs in check, helping to bolster our view of the sector.
And the fundamental picture seems to be improving as well as we've seen some of the perceived larger headwinds facing consumers appear to dissipate somewhat. We have seen consumers reduce their debt load, housing strengthen, auto sales improve, which indicates better consumer confidence, and the job market continues to heal. Additionally, one headwind for the consumer, in the form of higher oil prices largely due to concerns over the Middle East, has reversed course, turning a headwind into a potential tailwind, as lower energy prices should leave more money in consumers' pockets. Finally, we believe there continues to be some pent-up demand among consumers that have put off purchases. And with the improvement in the housing and the labor markets seeming to bolster consumer confidence, we believe demand will improve in the coming months.
We have long acknowledged the American consumer has shown a remarkable ability to overcome obstacles, and this time appears to be no different at this point, and are maintaining our outperform rating on the discretionary sector.
Positive factors for the consumer discretionary sector:
- Inventories remain quite lean. This should provide retailers with some pricing power as activity picks up.
- The Federal Reserve continues to be quite accommodative, which could help to support the consumer.
- Global central banks appear to be firmly in an easing stance, which could help bolster the consumer.
- The job market, although still somewhat sluggish, appears to be improving at a steady rate.
Negative factors for the consumer discretionary sector:
- Credit standards remain tight, although there are signs of easing.
- Uncertainty in Washington could dent consumer confidence for a longer time period than expected and push shoppers to the sidelines.
Despite some recent brief bouts of outperformance, for the past several months the staples group has generally underperformed the overall market. We continue to believe underperformance is the most likely near-term course for the staples group as US economic data continues to indicate growth and investors look to boost return potential and move out the risk spectrum to some degree.
Although a consumer group, in contrast to the discretionary sector, the staples group is considered defensive because it tends to sell items that will be purchased regardless of the economic environment, such as toilet paper and laundry detergent. While this is a positive during tough economic times, it can also be a negative during times of improving economic conditions as consumers don't typically expand their spending on such items as the economy improves—demand tends to stay relatively constant. And with concerns about a repeat recession appearing to be diminishing, the more defensive group could continue to be in for a bit of a rough ride.
Additionally, staples companies typically deal with relatively narrow margins, which can make it difficult to rapidly increase profitability and thus support swift growth in stock prices. These margins could be squeezed even further as the payroll tax hikes impact Americans.
Although the majority of fundamentals in the group still seem somewhat decent to us, and despite some recent selling, we believe the group remains somewhat extended and valuations are concerning to us. As such, we believe that an underperform rating is most appropriate.
Positive factors for the consumer staples sector:
- Staples retailers have aggressively cut costs and are attempting to create more perceived value for consumers, which could support sales.
- The defensive consumer staples group could benefit from tighter consumer wallets if confidence doesn't recover like we believe it will.
- If government budget uncertainty continues, investors could start to move more to defensive areas of the market, such as staples.
Negative factors for the consumer staples sector:
- Competition continues to accelerate and is exacerbated by the increasing emergence of low-cost, emerging market production, which could potentially cause pricing power in the group to evaporate by compressing margins and squeezing earnings.
- An acceleration of economic growth would likely cause the staples sector to underperform.
- Numerous central banks are now firmly in easing mode in an effort to stimulate the economy, which could hurt the more defensive sectors.
Oil prices have eased off their highs much as we expected once the Middle Eastern situation died down and as we moved past the summer driving season. This has helped the energy sector modestly underperform the overall market over the past couple of months, a trend we believe is starting to moderate, although volatility in the sector is always possible, resulting in largely marketperformance.
Energy, and especially crude oil, tends to have a large speculative element at times which can make it difficult to focus on the underlying fundamentals, but we believe that's exactly what investors should do. Although there are likely to be many twists and turns, we believe it ultimately comes down to supply and demand factors, influenced largely by the global economic outlook. And right now, the Fed is holding off on scaling back on asset purchases and global growth appears to be improving, which would typically benefit the energy sector, but improved supplies and still modest demand growth lead us to a relatively balance picture that we believe will result in performance roughly inline with the overall market.
We believe the US and Chinese economies will ultimately drive the direction of the sector. To that end, China's response to its economic softening had been almost nonexistent and leadership appeared to be more concerned with longer-term structural issues than near-term growth. That appears to be changing as China seems to be reverting to previous attitudes and supporting short-term stimulus efforts. Alternatively in the US, the Federal Reserve has been extremely aggressive, but its effectiveness appears to be diminishing as time goes on, although they are now expected to hold their current policy in place longer due in large part to the fiscal uncertainty which is likely offsetting some of their efforts.
Moving past the short-term movements in the energy markets, economic developments seem to be moving more in the direction of supporting the energy sector. The US economy continues to expand but at a modest rate, Japan's recovery may be gaining traction, and Europe's economic situation continues to be in question but there are signs that the economy is turning around. However, there is also an increase in domestic production that could bring prices lower as US supplies of energy products build.
Longer term, we have a mainly positive outlook for the energy sector and believe a buying opportunity may present itself during a deeper retrenchment in oil prices. Developing countries will almost certainly continue to need more fuel, demand will likely continue to grow but we also note that supplies are increasing as well leaving us with a relatively neutral view for at least the time being.
Positive factors for the energy sector:
- Global uncertainties could threaten some supplies, although we don't believe the recent Egyptian problem will result in a disruption.
- Developing nations will likely need more energy as they improve their infrastructures and modernize their economies.
- Global central banks appear to generally have an easing bias, which could help the more cyclical sectors such as energy.
Negative factors for the energy sector:
- Supplies could increase dramatically with a renewed commitment to exploration and technological improvements. We've already seen new discoveries and existing fields produce more oil than originally projected.
- Conservation efforts and new technology could impact the growth in demand for energy products.
The performance of the financial sector has been impressive to this point in the year, modestly outpacing the general market, but performance has lagged over the past few months and we continue to believe that chasing the earlier outperformance is not the right course of action, especially given the uncertain, and even at times, seemingly punitive regulatory environment, and are sticking with our marketperform rating on the group for the present time.
There are still risks for the group, although we believe the sector's fundamentals and broader macroeconomic developments help to offset some of those risks. A still extremely accommodative Fed provides financial companies with low borrowing rates on money that they can potentially then lend out at higher rates. And although the spread isn't historically large, the possibility for longer-term interest rates to move higher, although they've fallen a bit recently, while the short end remains anchored by the Fed provides the opportunity for margin expansion. Also, balance sheets of consumers and companies appear to be improving. Corporate cash balances are high and household debt as a percentage of disposable income for consumers has fallen. This has enabled banks to gradually reduce the reserves on their balance sheets for loan losses. And the continued improvement in the housing market should, in our view, bolster financials as they are able to get foreclosed homes off their balance sheets more quickly, although mortgage demand has softened due to the increase in rates over the past several months.
We still have concerns, and chief among them as mentioned above is the regulatory environment. Regulations that limit trading financial institutions can do for themselves, which has been a major profit driver for some companies, remain a concern for us. In fact, the debit card fee limit imposed by the Federal Reserve was found to be too high, a court decision that has the potential to impact lucrative revenue stream. And already-instituted new capital requirements restrict the amount of money banks can lend, limiting profit potential for many of them. Additionally, uncertainty remains as only a portion of the Dodd-Frank regulations have been decided on, while the rest continue to be debated.
We maintain relative confidence in the ability of the financial industry to reshape itself and adjust to the changing environment as it has done so many times, but are watching developments in Washington carefully to determine what our next move may be.
Positive factors for the financials sector:
- Most financial institutions have paid back government loans and are increasing share buybacks and dividend payments, illustrating their growing health and stability.
- Recent delinquent loan estimates have decreased among credit card companies, indicating improving balance sheets.
- Lending standards have loosened somewhat, which could help loan volume grow.
- Businesses could increase borrowing, as they take advantage of low rates and look to spend on projects they’ve been . postponing in light of economic and fiscal uncertainty.
Negative factors for the financials sector:
- Rising interest rates could dampen demand for mortgages, which could impact profits in certain areas of the financial sector.
- Government intervention, such as new limits on certain fees that can be charged, has already started to affect the financial industry and could hold back performance for the foreseeable future.
- A new round of foreclosure uncertainty or a push by the Federal government to again loan to higher risk borrowers could pose problems for the financial sector.
We've liked the health care sector for some time as the fundamentals of the group have remained attractive to us but the area continues to face political headwinds, leading us to maintain our marketperform rating. Health care continues to be at the center of much political discussion, even after the Affordable Care Act was solidified by a Supreme Court decision and the election results. However, implementing the numerous provisions of the Act still remains under debate and seem to change on a relatively frequent basis—causing some additional volatility in the group.
Containing costs remains a high-profile issue and increased government involvement could mean a more challenging environment for at least some of the space. Until we get a better handle on what impact the current negotiations have on the economy as a whole and the health care sector specifically, we believe a marketperform rating is appropriate. The sequestration cuts, if sustained, would likely have an impact on the sector due to the scheduled cuts in Medicare reimbursements.
But it's also important to remember that the political aspect is only one piece to the puzzle and that investors should also look to the overall fundamental picture. In our view, these fundamentals look good as valuations are decent, balance sheets are solid, the group has good dividend yields, and the overall cost structure appears to have been much improved. And while the fight in Washington is largely on how to pay for health care, there seems to be little debate that there is an increasing demand for health care products and services, which is typically a good sign for an industry.
Finally, we believe the health care sector provides both growth and defensive characteristics, which can be attractive to investor, leading to our relatively positive view of the sector and the possibility that it may regain its outperform rating in the near future.
Positive factors for the health-care sector:
- The aging population could provide a boon for the industry as an increasing number of Americans require more extensive drug treatments and medical care.
- Americans are increasingly obese, which results in a greater need for medical attention due to the myriad of health issues that coincide with obesity.
- Balance sheets in the health-care sector remain flush with cash, boosting the possibility of higher dividend payments, share-enhancing stock buybacks, and mergers and acquisitions.
Negative factors for the health-care sector:
- Government regulation will likely continue to increase during the coming years as an aging population demands intervention in order to theoretically lower their out-of-pocket health-care costs.
- The current and fiscal situation in Washington creates continued uncertainty regarding the group.
- Medicare spending could be reduced as the government seeks to reduce the deficit, which could hurt some of the health care sector.
Although the global manufacturing picture still appears a bit murky to us at the present time, we continue to believe in our recommendation on the group of outperform. The national ISM Manufacturing Index moved back into territory depicting expansion recently and had another very strong reading recently and regional surveys have been better, helping to ease concerns over a potential sustained pullback. Additionally, Europe remains weak but there are some encouraging signs as governments appear to be shifting off of some of the more onerous austerity policies that could help to boost growth and the ECB is finally being more aggressive, while Japan's situation appears to be improving, although China remains a concern. This somewhat disjointed, but potentially improving picture leads us to believe that an outperform rating is appropriate.
We have concerns, but they are slowly being balanced out as Europe is apparently out of their recession and has made progress on their debt crisis, despite recent flare-ups, China's growth is slow relative to history but they appear to be making structural improvements and are focusing again on infrastructure investments, India's bureaucracy remains troubling although there are nascent signs of reforms, and US political concerns continue to weigh on companies. We believe corporations have been cautious, but the investment picture appears to be brightening as the head into next year.
We also continue to watch fiscal austerity measures around the world, which could dampen growth in the industrials arena, but as mentioned above do appear to be dialed down at least somewhat, painting a potentially positive picture for industrial stocks.
Positive factors for industrials:
- Corporate balance sheets remain relatively cash rich, which could help push management to invest in new, more-efficient equipment to help offset production losses due to layoffs.
- Lending standards, while still tight, have started to loosen, which should help boost capital spending.
- Inventories in much of the manufacturing area appear relatively low, leading to the possibility of a demand-inspired rebuilding phase.
- Countries are now considering undoing some of their more stringent austerity-related policies, which could help to boost economic activity and demand for industrial goods.
Negative factors for industrials:
- Access to credit remains limited in many cases—among smaller businesses, for example—which tends to dampen spending plans.
- Fiscal austerity, if maintained, could result in slower economic growth and decreased demand for industrial products.
We've seen signs of a perk up in performance of the tech sector, and we continue to believe that the sector is poised to outperform and reward those investors who are patient. The innovation and entrepreneurial spirit that seems to pervade the tech sector are factors that are sometimes difficult to quantify but make us excited about the future of the sector and push us to have an outperform view on the group.
With large cash balances, increasing dividend payments, solid management in many cases and tight inventory controls, the tech sector appears far more stable than it was in the late-1990s environment that so many still remember. We've been touting this stability as one of the reasons to stick with the group and in fact the sector has outperformed during the past couple of downturns in the market, illustrating some of the tech defensiveness we've seen developing. We believe those who remain invested in tech will continue to be rewarded with outperformance in the coming months.
The fundamentals of the group also appeal to us. Companies that have underinvested in technological improvements during the past couple of years appear to be at the point where they need to upgrade equipment. Such investments are typically attractive because they tend to increase companies' efficiency and productivity at all levels.
As a result, companies can produce more with fewer workers—as we're seeing with relatively high productivity numbers but still-high unemployment readings—which allows them to cut back on costs and potentially expand margins.
Additionally, balance sheets in the sector appear solid, with large cash balances and relatively low debt. This enables the group to increase dividends and pursue mergers and acquisitions that might help performance as competition is removed and expenses consolidated. We believe this also helps provide stability to the group, which in turn gives it a certain level of defensiveness mentioned above, contrary to its high-beta history.
Positive factors for information technology:
- Growth in business investment in technology is now outpacing growth in total business investment.
- Real tech investment has been below trend for several years, which could bode well for the future of the sector as spending returns to more normal levels.
- We're starting to see banks loosen lending standards, which could slowly help revive capital investments.
Negative factors for information technology:
- Increasing global competition, especially in areas with low labor costs, will likely continue to compress profit margins.
- We see signs that companies remain hesitant to increase capital spending.
The materials sector has rebounded a bit recently as the global growth outlook may be picking up modestly, and the US dollar has had a bit of weakness, which we don't believe is sustainable but can help to juice the materials sector. However, there is still uncertainty surrounding global economic growth with a still tepid at best European environment , Chinese growth that has slowed based on the past several years, and a likely stronger US dollar longer-term that dampens profitability from abroad. With aggressive responses from central banks and a reduction in austerity measures around the world having the potential to improve some of these issues, we are watching the materials group closely, but we continue to believe marketperform is the best place to be at the present time.
Accommodative monetary policy, as we are now seeing in most of the globe, has typically been a positive for the materials sector as growth expectations increase. These actions have not resulted in a surge in growth so far, however, but we view these as signs that important central banks around the world are starting to come over to the Fed’s view of bolstering growth. Additionally, we are starting to see a new potentially positive phenomenon as some indebted governments have scaled back on their austerity plans, and are focusing a little more on generating economic growth. This could provide a bit of a tailwind behind the materials sector, warranting a marketperform rating, with an eye toward another upgrade should global improvement take hold .
Positive factors for the materials sector:
- Developing countries continue to need more natural resources to support their infrastructure building.
- Global central banks are now largely in easing mode, which should help to support economic activity and the materials sector.
- Some austerity measures seem to be easing, which could help to stimulate growth.
Negative factors for the materials sector:
- Chinese demand for processed commodities might be slowing as technological advances and a build-out of production facilities allow the country to produce more of its own materials. China recently transitioned from a net importer to a net exporter of steel.
- Wage costs are rising in the materials sector as we’ve seen skilled labor shortages in certain segments of the market.
- US dollar strength could undermine the results in the materials sector.
The telecom sector has become increasingly concerning to us and we recently cut our rating on the group, from marketperform to underperfrom. The yield provided by the sector, and traditionally defensive nature of the group, can make it attractive to investors in an environment where income is difficult to come by. But as we've seen recently, when interest rates start to rise, the telecom sector could suffer. We also believe the boost the group's received from recent merger and acquisition activity will be relatively short term in nature as some concerning fundamentals come to the forefront.
The telecom sector has lost some of its traditional defensive appeal, in our opinion, given that the group has moved much of its business model from the seemingly stable, regulated fixed-line business to the more variable, consumer-dependent wireless arena, while also dealing with an onslaught of competition from a variety of sources. And although consumers are increasingly demanding more wireless services, which could boost revenues, costs remain elevated which could make profitability more difficult.
Generally, many investors apparently do still view telecom as defensive, seeing the remaining fixed-line business as a cushion against variable revenues in less certain times. Additionally, dividend yields in the space have been relatively attractive to income-hungry investors. But we are seeing wage costs, which had been under control, start to rise, while announcements of increases in capital expenditures could reduce margins, causing us some increasing concern.
Competition for increasingly budget-conscious consumers remains fierce, and telecom certainly hasn't been immune to bargain-hunting shoppers, as evidenced by declining pricing power in the space. We're watching developments in this area especially closely given that new products still seem to be enticing consumers to spend, but we wonder how many times the sector can draw from that well.
In contrast to the technology sector, companies in the telecom sector have a lot of debt on their balance sheets, so we continue to view the group with caution as interest rates continue to rise, and we feel comfortable lowing our rating to the group at this point.
Positive factors for the telecommunications sector:
- Wireless demand appears to be increasing as more communication and media devices move to the wireless arena, although some of that movement is likely to take away from fixed-line revenue.
- The higher dividends typically paid by telecom companies are increasingly attracting investors tired of paltry fixed-income yields. But the yield advantage these companies have over the market appears to be diminishing.
Negative factors for the telecommunications sector:
- Consumer spending on telecom compared to total spending is now falling, which has typically coincided with underperformance for the sector.
- Net profit margins are declining for the telecom sector as competition squeezes margins.
- Capital expenditures in the telecom space are rising as companies look to improve and expand their networks, which could be a burden on profitability in the near future.
- The telecom sector has the highest debt-to-equity ratio of any nonfinancial sector. That could hurt the group in this time of tight credit.
We have been concerned about stock valuations in the utilities sector for some time as investors chased the relatively higher yields, and we cut the rating to underperform from marketperform. After a nice run to start the year, as investors hunting for yield piled into the utilities sector, we believe the group's rally got a little long in the tooth and we've seen some underperformance, which we believe is not done yet.
Additionally, the Fed appears to be attempting to make riskier assets more attractive through extremely loose monetary policy, which we believe will make the utilities sector increasingly unattractive to investors. Finally, should interest rates continue to creep higher with stronger economic growth, the yield characteristics of the utilities sector may become less attractive, leading us to believe an underperform rating is most appropriate.
Certainly, if the economic situation deteriorates, the utilities sector could benefit from a search for perceived safer assets. Additionally, an improving housing market could result in an increase in electricity needs in developing areas, and we’re seeing signs that may be occurring as housing starts have started to creep higher. But we believe these potential positives don't outweigh our concerns and the sentiment shift among investors we believe is now occurring.
Positive factors for the utilities sector:
- Dividend-paying stocks remain attractive as long as yields on conservative fixed-income products remain relatively low. And should economic prospects decline more than currently expected, defensive, dividend-paying stocks could become even more attractive.
Negative factors for the utilities sector:
- Utilization rates of electric and gas utilities have moved down modestly while production has spiked, indicating a potential oversupply issue that could pressure margins.
- Capacity growth has been rising, which has been a sign of underperformance for the sector in the past.
- Accelerating economic growth would likely make the defensive utilities sector less attractive.
About Schwab Sector Views
Schwab Sector Views were developed by Charles Schwab & Co., Inc.'s ("Schwab's") Investment Strategy Council. Schwab Sector Views are Schwab's outlook on the 10 broad sectors as classified by the widely recognized Global Industry Classification Standard groupings. The GICS structure comprises sectors, industry groups, industries and subindustries. Schwab Sector Views are at the sector level. While Schwab Equity Ratings and Schwab Industry Ratings utilize a disciplined approach that evaluates all stocks (Schwab Equity Ratings) or all industries (Schwab Industry Ratings) in the same manner, Schwab Sector Views uses analytical techniques and methods that vary from sector to sector.
Explanation of columns in the table: The benchmark weights are provided for reference and represent each sector's market capitalization weight in its index.
Schwab Sector Views represent our current outlook on each particular sector. All investors should be well-diversified across all sectors. However, investors who want to tactically overweight or underweight particular sectors may want to consider our three- to six-month relative performance outlook reflected in this column. These views refer only to the domestic equity portion of investors' portfolios.
How should I use Schwab Sector Views?
Investors should generally be well-diversified across all sectors, at or near the respective sector market capitalization weights relative to the overall market (benchmark). However, investors who want to make tactical shifts to those weights with a goal of outperforming the overall market can consider the Schwab Sector Views as a resource. Schwab clients can also use the Stock Screener or Mutual Fund Screener to help identify buy and/or sell stock or mutual fund candidates in particular sectors that they may be underweighted or overweighted in their portfolios.
How to use Schwab Sector Views in conjunction with Schwab Equity Ratings
Sector diversification is an important building block in portfolio construction. Schwab Sector Views are expressed in terms of outperform, marketperform and underperform, and can be particularly helpful in evaluating and monitoring your portfolio composition. Schwab Sector Views can be useful in screening new stock purchases and in identifying portfolio holdings for possible sale. A review of sector weights coupled with individual stock concentration should be a critical measure of equity portfolio diversification. Schwab Equity Ratings provide an objective and powerful approach for helping you select and monitor stocks.
Schwab Sector Views do not represent a personalized recommendation of a particular investment strategy to you. You should not buy or sell an investment without first considering whether it is appropriate for you and your portfolio. Additionally, you should review and consider any recent market news.
The Institute for Supply Management (ISM) Manufacturing Index is an index based on surveys of more than 300 manufacturing firms by the Institute of Supply Management. The ISM Manufacturing Index monitors employment, production inventories, new orders and supplier deliveries.
Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. The table indicates returns based on gross returns. If commissions and other costs are deducted, the performance would be lower. Past performance is no guarantee of future results.
The GICS was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor's. GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc.
The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.
Diversification strategies do not assure a profit and do not protect against losses in declining markets.
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.