The CompleatAdvisor Update
FOR THE WEEK OF MARCH 23RD – 27TH, 2015
PORTFOLIO MANAGER’S COMMENTARY
Recent volatility has led to some raised eyebrows and concern over the near-term direction of U.S. equity
markets.
It is our opinion that yesterday’s sell off was primarily an act of taking profit and rebalancing portfolios at
quarter-end. Two of the hardest hit areas were technology at large and more specifically biotechnology. It is
important to note that technology and biotechnology have been outperformers for much of the past 5 years,
and it is reasonable that those who have been in these spaces will occasionally take some profit.
The timing of the sell-off to some degree can be attributed to the end of the quarter, where managers look
to rebalance portfolios, and those most heavily sold will be those that have appreciated disproportionately to
the rest of the portfolio. It can also be tied back into a lower than expected durable goods new orders figure
which caused some concern regarding the near term strength of the economy. Our opinion on the strength of
the U.S. economy is not shifting as a result of a single data point, since month to month these figures can tell
very different stories. Rather it is the longer term trends in multiple economic indicators which provide the
most relevant guidance on the state of the economy. For instance, while February’s durable goods new orders
fell by approximately 1.35%, January saw this same figure increase by approximately 2%.
As a result, no major allocation changes have been made this week.
PORTFOLIO ALLOCATION UPDATE
Conservative
Decreased the allocation to industrials and health care, while increasing allocation to preferred stock and aggregate bonds.
Moderate
Increased the allocation to municipal debt, while reducing equity exposure.
Growth
No major allocation changes have been made.
Global Financial Private Capital, is an SEC registered investment adviser principally located in Sarasota, Florida. Investment Advisory Services offered on a fee basis
through Global Financial Private Capital, LLC. Securities offered through GF Investment Services, LLC, Member FINRA/SIPC.
2080 Ringling Boulevard, Sarasota, Florida 34237 • Tel: (866) 641-2186 • Fax: (941) 918-0405 • www.gf-pc.com • [email protected]
The CompleatAdvisor Update
Allocation Summary
Fixed Income Allocation
Equity Allocation
Alternative Allocation
Conservative
Income
Conservative
Income with
Growth
Moderate
Growth
with Income
Focused
Growth
Base
70.00%
60.00%
30.00%
0.00%
Current
60.80%
42.77%
26.57%
4.95%
Base
30.00%
40.00%
70.00%
100.00%
Current
29.95%
48.34%
71.63%
95.05%
Base
0.00%
0.00%
0.00%
0.00%
Current
9.25%
8.89%
1.80%
0.00%
Market Activity Update:
03/18/2015 – 03/25/2015
YTD as of 03/25/2015
S&P 500 Total Return:
-1.82%
+0.58%
Russell 1000 Value Total Return:
-1.86%
-1.21%
U.S. 10 Year Treasury Yield:
+1.00bps
-25.00bps
Crude Oil WTI:
+10.19%
-7.62%
Gold XAU:
+2.39%
+0.94%
Data Source: Bloomberg
This commentary is not intended as investment advice or an investment recommendation. It is solely the opinion of our investment
managers at the time of writing. Nothing in the commentary should be construed as a solicitation to buy or sell securities. Past
performance is no indication of future performance. Liquid securities, such as those held within DIAS portfolios, can fall in value.
Global Financial Private Capital is an SEC Registered Investment Adviser.
S&P 500 Index Total Return: The Standard and Poor’s 500 index is a capitalization-weighted index of 500 stocks. The index is
designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks
representing all major industries. Total return includes interest, capital gains, dividends and distributions realized over a given
period of time.
Russell 1000 Value Index Total Return: The Russell 1000 Value index measures the performance of those Russell 1000 companies with
lower price-to-book ratios and lower forecasted growth values. Total return includes interest, capital gains, dividends and distributions
realized over a given period of time.
U.S. 10 Year Treasury Yield: The on-the-run aggregate yield of 10 year U.S. Treasury bonds.
Crude Oil WTI: Crude Oil WTI refers to the front month futures for West Texas Intermediate crude oil. WTI crude oil is the underlying
commodity of the New York Mercantile Exchange’s oil futures contracts.
Gold XAU: Gold XAU is the spot price of 1 troy ounce of gold used for international trade and is denominated in USD.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Global Financial Private Capital, is an SEC registered investment adviser principally located in Sarasota, Florida. Investment Advisory Services offered on a fee basis
through Global Financial Private Capital, LLC. Securities offered through GF Investment Services, LLC, Member FINRA/SIPC.
2080 Ringling Boulevard, Sarasota, Florida 34237 • Tel: (866) 641-2186 • Fax: (941) 918-0405 • www.gf-pc.com • [email protected]