As we enter into the Q2 earnings reporting period, July also tends to be one of the better-performing months of the year. We still expect a correction heading into the election, but such will likely not occur until August-October.
Continue to maintain current equity exposure based on your personal risk tolerance. The market is overbought, and deviated from longer-term means, but such can remain the case longer than you think.
Bullish sentiment and momentum continue to drive the markets in anticipation of the Federal Reserve cutting interest rates. Eventually, economic realities will collide with the market, leading to a much-needed and deeper correction. However, that is not today.
For now, the portfolio will continue to be predominantly weighted in US large-cap (S&P 500) markets. Money flows, due to passive investing, will continue to keep those stocks elevated.
If you are close to retirement or are concerned about a pickup in volatility, there is nothing wrong with being very underweight equities. It is better to be safe than to give up dreams of retirement to rebuild lost wealth.
Model performance is a two-asset model of stocks and bonds relative to the weighting changes made each week in the newsletter. Such is strictly for informational and educational purposes only, and one should not rely on it for any reason. Past performance is not a guarantee of future results. Use at your own risk and peril.
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The core strategy consists of holdings that are based on market fundamentals, valuations, and long-term market trends. These are holding that should be considered “long-term” investments and should primarily track the benchmark index over time. The turnover of the portfolio should be extremely low with the exception of rebalancing periods due to market gyrations.
The tactical strategy consists of holdings which based on the short- to intermediate-term trends of the market. As macro-economic, monetary and fiscal policy, and investor psychology impacts markets, the holdings in the tactical strategy will shift to take advantage of market rotations. Importantly, this portion of the portfolio can move to all cash if needed to reduce risk in the event of a market downturn.
The fixed income strategy is designed to both take advantage of changes in interest rate and inflation expectations, but also deliver a lower degree of volatility to the overall portfolio. The primary focus of the fixed-income portfolio is to protect capital, generate income, and lower overall portfolio volatility.
As we enter into the Q2 earnings reporting period, July also tends to be one of the better-performing months of the year. We still expect a correction heading into the election, but such will likely not occur until August-October.
Continue to maintain current equity exposure based on your personal risk tolerance. The market is overbought, and deviated from longer-term means, but such can remain the case longer than you think.
Bullish sentiment and momentum continue to drive the markets in anticipation of the Federal Reserve cutting interest rates. Eventually, economic realities will collide with the market, leading to a much-needed and deeper correction. However, that is not today.
For now, the portfolio will continue to be predominantly weighted in US large-cap (S&P 500) markets. Money flows, due to passive investing, will continue to keep those stocks elevated.
If you are close to retirement or are concerned about a pickup in volatility, there is nothing wrong with being very underweight equities. It is better to be safe than to give up dreams of retirement to rebuild lost wealth.
Model performance is a two-asset model of stocks and bonds relative to the weighting changes made each week in the newsletter. Such is strictly for informational and educational purposes only, and one should not rely on it for any reason. Past performance is not a guarantee of future results. Use at your own risk and peril.