Written By Nathan White, Paragon’s Chief Investment Officer
The markets have been down for the first two weeks of May. This was led by weakness in commodities, which had been on a tear over the last six to nine months. The materials and energy sectors have been hit the worst. We have been using the ups and down to lighten exposure in the materials area because it looks like it has seen its best days on a risk adjusted basis. We also pared back some energy exposure, but might look to re-enter at lower prices if given the opportunity.
This is a seasonally tougher time of year for the market. The market is looking tired after the good run we saw and the uncertainty of the impact of QE2 ending. The majority of our models are still bullish, but not with a same degree of conviction as we saw over the last two years. We have built up a cash position in our growth portfolio
, Top Flight, to hedge and take advantage of any dips.
Hopefully the market is just entering a consolidation phase wherein any corrections would not become severe as the fundamentals still supporting the cyclical bull market remain intact.
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.