The market has moved up recently, implying the economy has improved. Although there may be small incremental gains, we are far from being out of the woods in our opinion. We are getting indications that demand is stable in the outsourcing group, but no indications of acceleration. The net result may be a short-term opportunity to take profits. Overall our investment thesis that portfolio positioning should continue to have a defensive nature has not changed. We will be looking for more data points in the upcoming weeks regarding spending patterns and how strong the end of the year will be. Our BUY-rated names are IBM, Accenture, Cognizant, Syntel, Virtusa, Genpact, WNS, and EXLService.
For more information, please contact:
Joseph D. Foresi