Financial Professionals

Market Insights

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The Market Recovery Continues in Historic Fashion

08/13/2009

The Federal Reserve should be applauded for understanding the deflationary environment and concurrently supporting risky asset prices, as a buyer of last resort.

Investors participate in the market to achieve returns. Unfortunately, the speed of the market's recovery along with the continual chorus of negativity and caution from economist types have left investors under-invested and unable to match the market return since mid-March. Even I have become near-term cautious given current valuations; however, 2009 continues to look like 2003 in terms of market performance - a continual stair step higher and higher that forces an eventual end-of-year chase for performance.

I doubt that the doom-sayers who continue to regurgitate the headlines from January of this year would stay with a correlated bearish market position, if they had their own money on the line. We are all entitled to our own market opinions but to continue to forecast such "market doom" given the market's performance in the past few months is silly and somewhat reckless. Multiple viable investment themes remain in the market which investors should embrace and focus on.

 

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.