I’m Keith DeGreen and this is your Investors Minute

At DeGreen Capital Management we’ve rotated heavily into U.S. equity ETFs. We’ve even added some leveraged exchange-traded funds. We expect a strong year-end for U.S. markets. Here are some more reasons why:

There remains a significant comparative-value gap between U.S. government bonds, and bonds issued by other developed countries. Meanwhile, the dollar continues to appreciate against the Euro and the Yen. This should cause
U.S. interest rates to remain relatively low.

For example, U.S. ten-year Treasuries yield about 2.3% while ten-year German bonds yields .8% and while ten-year Japanese government bonds yield .4%. This discrepancy in value, along with our appreciating dollar, should not only drive more buyers into the U.S. bond market.

With low yields on bonds everywhere, U.S. equities should continue to look attractive by comparison.

Tomorrow, I’ll offer more reasons why we’re bullish on U.S. equities.

FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Irvine: 949-333-4550. Scottsdale: 480-609-9900. www.DeGreen.com. Minimum portfolio requirement $1,000,000.

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