By Nathan White, Chief Investment Officer of Paragon Wealth Management
The following video agrees with our current readings on the economy and the fears regarding a recession. While we acknowledge that there are notable risks to the economy the bulk of the economy is still growing slowly and the data does not currently support a recession call. The global economy is adjusting to lower energy and commodity prices and the resultant effects on associated companies and countries. There’s not much the central banks can do at this point and so we’ll just have to struggle through. The latest global economic data (e.g., leading indicators, PMI’s and sentiment) continues to show signs of stabilizing. We will continue to monitor actual conditions but for the current time the data does not indicate a recession. If actual conditions change then we will act accordingly.
Regarding the markets: We are by no means overly bullish but the current downturn is showing signs of being overextended. While it is impossible to call bottoms we are seeing extremely negative sentiment expressed in the current volatility and the rush to gold and treasuries. We will need to see oil stabilize as markets have been attached to its movements. However, the recent downturn is creating opportunities we have been waiting for in many areas. Valuations, which was one of our biggest concerns have come down to very reasonable levels. Our portfolios have significant cash levels to help protect against the downside and to take advantage of opportunities as they arise.
Disclaimer 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.