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Resetting the Portfolio Strategy.

The time has come to reframe our thinking. Here are the two overwhelming guidelines:

1. The US is a Self sufficient economy. The US is the only major economy enjoying self sufficiency. It is firmly grounded on a robust consumer at home. Elsewhere it is the most favoured nation for investors around the world. So employment and the stock market are at all time highs Рexpect this to continue.

2. The White House rules. The President, his eyes fixed on his own reelection will take every step in his power to ensure both employment, and the stock market continue to surpass expectation.

Every political thought, foreign policy in particular, will be focussed on ensuring that no black swan event takes place to threaten the steady growth in the US. At home the FED, now politically corralled, will mssage interest and currency rates to underpin and enhance the reelection mission – so a steady stream of cuts throughout the period.

Reset your portfolio – remain focussed on America-centric stocks with strong dividends, reduce gold and any other hedging onvestments and add America – centric stocks for the duration – we have at least 16 months of further growth – don’t miss out.

All the best, James.

James Cooke is advisor to the King Group Wealth Management Team at Merrill Lynch.