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Peter Tasca 468 North Camden Dr. Beverly Hills CA, 90210 3104925301 |
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The firm has issued a caution to all their investors telling them that the market will correct 15% - 20%. Sell rating on APPL, MGM, LVS, and WYNN.
Online PR News – 18-January-2011 –British Virgin Islands -
Laureate BVI Fund finished the year up +23.67% versus +15.06% for the S&P 500 index. The firm has issued a caution to all their investors telling them that the market will correct 15% - 20% and to sell stocks.
Peter Tasca Ceo of Laureate Trust states, “The market is at a pause right now and because of the bullishness of the market now is a good time to sell.” The issues we have with the market are, a depressed housing market, vulnerable corporate profit margins, and rising food, energy and interest rate costs are causes for concern. Tasca states, “A Major Risk Factor is the broad consensus for strong gains always makes me nervous, and that is what we have at present. Sentiment is frothy. Government policies have been key drivers of gains, and everyone now knows that zero percent Fed fund
rates are unsustainable.”
Reviewing market trends and independent data on the markets historic trading patterns have shown us that when markets collapse 50% or more, they have strong upward rallies that typically last an average of 21- months. These rallies typically end with a 25% correction, which we have yet to see as we begin the 23rd month following the March 2009 lows. Tasca States, “I expect the market to correct at least 15% - 20%. If investors are holding on to equities we recommend to sell now.
We have been bullish on Apple(APPL) but now are turning bearish, it is guaranteed to take a hit without Steve Jobs. We are also bearish on casino stocks such as MGM(MGM), Las Vegas Sands(LVS), and Wynn Casino(WYNN) due to their sky high valuations.”
Tasca states, “Risk factors will accumulate as the year goes on, the appropriate action for our investors will be to take a defensive position and maintain our long positions in financial instruments that pay double digit interest rates and offer 2-to-1 coverage and continue to deliver returns to our clients.”
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