The five largest holdings in this capital appreciation fund are: Mastercard Inc A (MA, 6.64% of assets); CBRE Group Inc (CBRE, 5.99%); Moody’s Corporation (MCO, 5.85%); Alphabet Inc Class C (GOOG, 5.49%); and Aon PLC (AON, 5.27%).
YCG Enhanced Fund (YCGEX)
From Moneyletter
Investors responded strongly to comments made yesterday by the Fed Chairman. Jerome Powell said that interest rate cuts would be implemented as needed to help an economy that is spooked by soft economic reports and worries over the trade deal with China. The Dow Industrials gained more than 500 points on Tuesday, and tacked on another 207 points today.
Investors sold stocks throughout the month of May as trade negotiations with China took an apparent turn for the worse. However, a strong consumer, accommodative Fed, and the upcoming G-20 meeting are all reasons for equity investors to be more positive as we enter June.
We are recommending no changes to our asset allocation percentages at this time. We’ve made a couple of fund changes. We will lean on our diversification to handle the current nervousness.
Some subscribers have asked if it is time to “get out.” Not only is that not advisable as we go to press, it is not our style. We advise constructing a portfolio that is diversified based on your intermediate- to long-term risk tolerance. We will typically reduce our equity exposure as needed, but not eliminate it. We choose not to reduce our equity exposure now for these reasons:
1. The consumer is in good shape.
2. Interest rates are stable or declining, supporting stock prices.
3. There is a better chance for a trade deal with China than today’s headlines would have you believe.
We recommend adding YCG Enhanced Fund (YCGEX).
Brian W. Kelly, Moneyletter, www.moneyletter.com, 800-890-9670, June 2019