Quality Growth Is Not Dead

Let me take a minute to introduce myself and my publication The FRED Report. My name is Fred Meissner, hence the name The Fred Report, and I was the Technical Research Analyst at The Robinson – Humphrey Company in Atlanta, Georgia from around 1990 to 2000.

I then became a Technician at Merrill Lynch in New York City from 2004 to 2009 covering all the Financial Advisors in the firm, so if you were there during that time then you might remember me. When I left Merrill after the Financial Crisis, I started The FRED Report to assist Financial Advisors with their practices. Teams call us their Technical Analyst on staff!

We have had a great year in 2022 which always gets me worried that I might be wrong on my thinking, but so far so good. We thought it would be good to give a recap of our thinking and how we got to our current thinking in our first article.

In December 2021 we looked at our longer-term indicators. These flashed warning signs so we took the following actions: We removed high growth names from our Sector Portfolios and replaced them with value oriented names that were less extended. We overweighted Staples and Materials, and were negative on Tech.

After several conference calls with analysts at Invesco, we started to emphasize dividends and low volatility themes. We have been looking at the possibility of a low in the June timeframe since we got these signals. So, what strategies are we looking to implement at mid year?