Financial Professionals


Are You Formulating Your 2011 Strategy?


First and foremost, Happy Holidays to all!

Thank you for your readership throughout 2010; I promise that in 2011 my continued focus will be on providing quality blog content.

As 2010 draws to a close, one's natural inclination is to sit back and reflect upon the year. In some cases, investors are satisfied with their 2010 year-to-date return, while in others, I imagine that frustration prevails. We endured a long "Baseball Season of Frustration" before the Back-to-School 20% S&P 500 surge higher.

What's important now is to prepare. In fact, I believe the final two to three weeks of this year are extremely important for a successful 2011. Over the past twenty years, I have witnessed successful traders, investors, and institutions use the December "down time" to formulate a strategy for the following year.

There will be headwinds, just like in any other year, in 2011. The trick is to identify, in advance, where you believe the headwinds and tailwinds might appear.  Formulating a strategy built around expectations provides confidence when headwinds eventually do surface. This time last year, we identified a "Baseball Season of Frustration" well in advance of its occurrence. On January 11, 2010 "Follow the Yellow Brick Road" was posted on our blog - feel free to re-read. 

Much has changed at the tail-end of 2010 - rising yields, rising commodity prices, growth expectations etc. These all must be incorporated into a written strategic plan.

My colleagues and I are currently working on releasing my expectations for 2011, including possible headwinds and tailwinds, and the asset classes in which I have the highest degree of confidence for 2011.

What Is Your Strategy for 2011? Don't set out on a journey without first mapping out the planned route!

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.