February 2020 Newsletter

Welcome to the month and year of the first palindrome in over 909 years. 02/02/2020 was the first world calendar palindrome since 11/11/1111. If you’re struggling to understand the significance of these historic events, there may be none. This itself is an important recognition as most of our observations may include novelty without importance or, like failed impeachment, the significance may come later. So, I searched significant dates in history and found nothing for 11/11/1111, though King Henry V and the Pope were up to much mischief during the year. As for its sister palindrome, 02/02/2020, now that the Chargers were moved to Los Angeles, I no longer find anything the NFL does salient. Therefore, it’s best to consider the next palindrome date, (1202021) January 20, 2021. This is a 7-digit palindrome. There are 26 of these in the 21st century, but only 12 8-digit palindrome dates in the 21st century, the next of which will be (12022021) December 2, 2021.

Let’s now turn ourselves to more significant data, the Credit Suisse Equity Strategy Navigator Report for February of 2020, attached, which includes the following themes:

  • Lower for longer labor force growth
  • Slower for longer demographics by age group
  • The key observation that all G7 and BRIC nations, with the exception of India, are below replacement birth rates
  • How growth models (the dividend discount model) point to higher valuations in the current environment
  • Why extremely low interest rates suppress spending, limiting their potential benefits
  • How foreign-exposed companies are expected to lead in 2020
  • Why energy’s drag on earnings is not expected to continue into 2020
  • The case for technology…why technology may not be expensive
  • Why dividends plus corporate buybacks make stocks more attractive than bonds
  • How defensive sectors lag when interest rates rise
  • Estimates for S&P operating earnings for 2020 and 2021

and much more.

Happy reading. As you have questions feel free to send me an email.

Vaughn Woods, CFP, MBA

Investors should be aware that there are risks inherent in all investments such as fluctuations in investment principal.  Past performance is not a guarantee of future results.  Asset allocation cannot assure a profit nor protect against loss.  Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed.  Views expressed in this newsletter may not reflect the views of Bolton Global Capital or Bolton Global Asset Management.  The information provided her is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice.  VW1/VWA0242.

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