August 2022
401(k) Allocation

There are trades. 

The long-term trend of the market continues to be down; however, the markets showed strength in July as the US markets rallied off the June lows.  Almost all sectors participated in the current advance and time will tell if this is just a rally within a bear market or the beginning of a longer-term uptrend.  Bears are looking at the Fed’s rate raising cycle and the second consecutive quarter of negative GDP growth and view this as just a bear market rally.  Bulls envision lower rate hikes in the future, a return to positive GDP numbers in Q3, and strong employment as signs that this is the beginning of a new bull market in stocks. 

The truth is no one knows the future.  We do know that the trends tend to be your friend and within the last few weeks our models recently indicated a buy for most of the bond positions.  We have made some adjustments with the 401k allocations to reflect those changes.

On the equity side, we are taking a little more of a cautious approach.  We made some small adjustments to add stock exposure but remain mostly focused on large cap equities.

As always, if you need assistance in rebalancing, please call us at the office and we will be happy to help!

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
TAX PLANNING

To download the August 2022 Newsletter: CLICK HERE

(Click on the Image to enlarge it.)