Aurum Wealth Management Blog

Aurum Wealth Management Group: 2nd Quarter Strategy Report

Aurum Wealth Management Group's Second Quarter Strategy Report includes the following topics:

  • The global economy is full of the haves and the have nots.
  • Japan and the U.S. propelled global equity markets higher with regional results varying.
  • Higher interest rates detracted from fixed income returns, while credit opportunities evolve.
  • REIT valuations ascend to familiar territory.


Reports in the fourth quarter from the IMF seemingly indicated an understanding that austerity led to worse long-term economic outcomes, yet ECB officials continue to prefer insanity (doing the same thing over again and expecting different results). It is not just periphery countries either. France’s industrial production looks set to contract and the performance is diverging markedly with Germany.

Click here to read more about the global economy.


The bull market beginning in March 2009 marked its fourth birthday with a double digit quarter across U.S. markets. Value beat out growth across large, mid, and small caps as the heavily weighted tech darling Apple detracted from returns. Healthcare and consumer staples were the top performers while the materials and technology sectors were up only 5%.

Click here to read more about global equity markets.

Fixed Income

Interest rates moving higher detracted from returns from high quality fixed income, with the paltry yields not being enough to offset the drop in prices.

Click here to read more about the fixed income returns.

Alternative Investments

The performance of REITs topped the alternatives category followed by hedge funds and Treasury-Inflation-Protected Securities (TIPS). Aurum maintains an overweight to diversified alternative strategies, equal weight to TIPS, and underweight to REITs.

Click here to read more about REIT valuations.

For more information on our Private Wealth Management Services, contact Michael McKeown by leaving a comment below, or by calling 440-449-6800.

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