April 2021
401(k) Allocation

We remain fully invested – but there are some small changes.  Namely, we have shifted our overweight from Growth to Value and we have removed the High Yield Bonds from consideration in the fixed income section of the bond portfolios.

The promise of an economic re-opening has fueled better performance in that segment of the stock market.  We still love the technology companies that drove the recovery during the pandemic as they are likely to see continued growth, but the out-performance there was due to cool for a bit.  What we have seen across the board this past month has been a push toward those value-oriented companies as a result.

We have been in small cap and international stocks since November.  Small cap had been on a tear since the election and has cooled its trajectory the past few weeks, but remains in an up-trend and should be a big benefactor of a re-emergent economy in the US.  International (as well as commodities) have been hit by the strength in the dollar and the rising yields on the US treasuries, as well as some concern over new lock-downs in Italy and France, so we may find ourselves re-deploying those dollars next month, but the longer trend is still positive and so we will let this play out a bit longer before making that change.

As always, if we have not yet created a de-coder ring for your specific plan options, we invite you to send us your investment options so we can create one for you!  And if you need assistance with rebalancing we are here to help.

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
COLLEGE AND TAX PLANNING

To download the April 2021 Newsletter: CLICK HERE

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