Sit Investment Associates provides quality investment management expertise in domestic and international growth equities and fixed income. Investment management services are offered across four channels: Separate Accounts, Private Investment Funds, Collective Investment Funds, and Mutual Funds. We take pride in serving as a true extension of our clients’ operations, providing highly individualized service in an increasingly challenging economic and financial environment.

We view investing as the practice of applying a consistent philosophy and decision-making process over meaningful time periods. In fact, the firm’s success is built on long-term client relationships, which in turn are built on a foundation of trust, commitment, understanding, and expertise.

The firm is owned by its seasoned investment professionals, who work hands-on in every aspect of the investment process and client service. We are 100 percent committed to achieving clients’ investment objectives, because our clients’ success results in our success.

Global Investment Outlook and Strategy

February 10, 2020

U.S. stocks, many of which entered 2020 technically overbought following robust fourth quarter gains, produced mixed results in January, with large capitalization and growth indices outperforming small- and value-oriented counterparts.  Sector outperformance for the month was split between high growth technology stocks and interest rate sensitive bond proxies (i.e., utilities, real estate, staples), whereas the energy sector significantly underperformed on plummeting oil prices.  While the rapidly spreading novel coronavirus (2019-nCoV) could impede a prospective reacceleration in global economic growth and negatively impact supply chains, underlying strength in the U.S. economy and investor hopes for fresh global stimulus have helped buoy domestic equities.  From an economic perspective, the response to the virus is disruptive to global trade.  We believe it is too early to tell just how severe the outbreak will become at this juncture, but it is already worse than SARS.  Under our base case scenario, we expect an eventual slowing in the spread of the virus as treatment protocols are refined, resulting in only a temporary reduction in global economic growth.    Coronavirus-related risks notwithstanding, global monetary easing and the phase one U.S.-China trade deal have set the stage for at least a modest uptick in global economic activity against easier year-over-year comparisons.  However, we expect equity markets will remain volatile, with sector leadership vacillating as investors struggle with ongoing uncertainties surrounding the virus, geopolitics, trade, and the efficacy of easier monetary policy at this stage of the economic cycle.  As a result, diversification and bottom-up stock selection remain key elements of our investment strategy.  Interest rates declined in January, as the Coronavirus dominated headlines and investors struggled to come to grips with the extent of its potential severity.

For more details, including a longer discussion of the outlook for global equity markets in 2020, please see Sit Investment Associates’ January 2020 Global Investment Outlook and Strategy paper. Click here: Global Outlook and Strategy (Adobe Acrobat) or e-mail us at: siainfo@sitinvest.com.

Since 2005, we have been proud supporters of the Federated Challenge in their efforts to support youth mentoring through Big Brothers Big Sisters.

MMAF Has Awarded Over 17,000 Grants

Since its inception in 2005, Minnesotan’s Military Appreciation Fund (MMAF) has awarded over 17,000 grants totaling over $10.5 million to Minnesota military personnel and their families.   MMAF is a non-partisan, non-political 501(c)(3) non-profit corporation.  It is a statewide fundraising initiative by the citizens of Minnesota.  Its mission is to say “thanks” to Minnesota service members and their families by providing cash grants to those who are making sacrifices in the defense of our freedoms in combat zones around the world.

The tragedy of 9/11 compelled the late Eugene C. Sit, founder of Sit Investment Associates Inc., to create MMAF in order to thank and give back to Minnesota service members.    Sit Investment Associates Inc. continues to support the efforts of MMAF.

To donate and learn more about Minnesotans’ Military Appreciation Fund, please visit the website at www.thankmntroops.org.