» Asset Allocation Report – 5/31/2011 Decision Economics

Asset Allocation Report – 5/31/2011

Posted May 31, 2011 by Editor

[private]Expansion and the Second Leg of the Cyclical Equity Bull Market—

Intact But A Minefield of Risks

Still Strategically Bullish

But Periodic Corrections and Consolidations

  • Decision Economics, Inc. (DE) macroeconomic top-down asset allocations remain characteristic of early- to mid-stage business expansion—the stage of the business cycle for most of the global economy, particularly the United States.

Macro Fundamentals Strategically Positive

  • Looking forward, key U.S. and global macroeconomic fundamentals—

1) sustained and sustainable economic growth and expansion, 2) rising prices and inflation, 3) increased earnings and 4) relatively low but rising interest rates—suggest higher stock prices, on average, although with periodic corrections or consolidations. Less accommodative, or tighter, monetary policies, where the amount and timing will differ across countries, also are a characteristic.

Asset Allocations Piece 5-31-11