What Our Managers Are Saying
PMA portfolio managers tend to be “bottoms-up” investors, focused primarily on company financial fundamentals in an attempt to identify those stocks that have real growth potential and staying power. They are not pleased by the current market environment, despite the historic bull market now closing in on its eighth anniversary.
What displeases them most is that central bank actions across the world have used easy money – in the form of “quantitative easing” – and low interest rates to provide stimulus to post-recession economies in the absence of the real fiscal policy changes (tax reform, regulatory reform, infrastructure spending) that legislative bodies have been reluctant to undertake. They see the former as financial engineering, but very much favor the latter as the development of real, lasting policies that could support the economy and the markets for years to come.