The US economy is showing clear signs of an upswing as the housing market continues to improve, manufacturing activity is advancing, and employment levels continue to advance. Indeed, weekly jobless claims are at their lowest level since 1973. As part of this strong economic backdrop, wage gains have accelerated as the labor markets tighten and the CPI price index has begun to exceed the Federal Reserve’s 2% target for inflation. Not surprisingly, the Fed is now on a clear path to raise short-term rates. We anticipate that higher inflation readings and higher rates will limit capital gains opportunities in the months ahead and, as such, believe a defensive posture is warranted. We have attempted to position the Saratoga Investment Quality Bond Portfolio in high quality short-term corporate bonds and continue to believe US Treasury Inflation Protected Securities will outperform other intermediate-term fixed income securities.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.