May & Maybe

May is an eventful month in my household and business. I am lucky to be Sophia’s Mom and got to celebrate Mother’s Day (although she makes everyday special and full of pride), we celebrated the end of another successful school year and are looking forward to our special family day on the 17th in honor of my mother. It’s also the time in which I lay out the investment strategies and portfolios for the summer months.

The latter can be a bit stressful. It’s full of “maybes”. Maybe, the summer will bring another spike in energy prices, maybe the hurricane season will be bad, maybe the equity markets will remain flat and frustrate investors, or maybe, just maybe, we will see the conditions outlined below.

Rebalancing for Summer –

I am in the process of rebalancing portfolios for the summer with consideration being given to the following possible outcomes of the next few months:

* Financials of U.S. industrial companies continue to improve
* Concerns about European debt are met with sound solutions
* U.S. banks and insurance companies continue reform
* Innovative small and mid-sized firms continue to impress with product design and creativity
* Current tax-rates are fairly low
* The American way-of-life still appeals to most everyone outside of the U.S.
* Interest rates continue a slow climb and this is perceived as a sign of strength
* High-flying sectors are replaced with moderate gains from many
* Currency fluctuations around globe become more manageable

As optimistic as all of these “maybes” may sound, by rebalancing portfolios with these assumptions and cleaning up overweighted sectors, we should be able to deal with any and all summer events in stride. That is not a maybe.

Until next week,
Susan R. Linkous