August Newsletter Highlights

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Here are the highlights from the August Newsletter:

  • The economy remains in post-recession expansion mode. The 30-Year Fixed Mortgage sits at 3.92% and inflation remains low at 1.98%.
  • Stocks look expensive by standard value metrics. However, this does not necessarily signal an imminent correction. The economy is generally strong, and risk measures are low. Consumer confidence is high and the dollar is strong.
  • The LGI Active portfolio returned 3.5% last month, compared with the 2.0% of the S&P 500. This outperformance is consistent with the LGI portfolio’s 3-Year Sharpe ratio of 1.56 versus 0.67 of the overall market.
  • Familiar names top our list of Value Stocks including Sinopec Shanghai Petrochemical, Carnival Corp, Siliconware Precision, and Owens Corning.
  • Real Estate market forecasts improved across the board this month, pushing up Cash-on-Cash above 20% for several metropolitan areas.
  • We focus our in-depth analysis on Las Vegas, which boasts high predicted returns, a positive population growth rate, decent employment statistics and a vacancy rate below the national average.
LGI Asset Allocation Strategy Volatility

LGI Asset Allocation Strategy Volatility