July 2023
401(k) Allocation

There are trades.

By: Jake Eggett

The Federal Reserve decided to pause its interest rate increases this month, but they indicated the possibility of future rate hikes due to concerns about sticky inflation. Despite ongoing geopolitical tensions and negative corporate earnings for two consecutive quarters, the stock market has climbed the wall of worry, with the S&P 500 experiencing one of the longest periods without a 3% pullback since World War II, according to Deutsche Bank. Although low volatility environments typically yield favorable returns, it is crucial that investors avoid becoming complacent, as markets can shift quickly.

Currently, we are fully invested in both our stock and bond portfolios and therefore we’ll maintain our risk-on approach with the 401k allocation. At present, domestic and growth-oriented stocks continue to exhibit the strongest trend. Consequently, we are reducing our international exposure and increasing our allocation to the US markets.

As we cannot predict the future, our approach remains aligned with market dynamics, adjusting as conditions evolve.

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
FRAUD ALERT

To download the July 2023 Newsletter: CLICK HERE

(Click on the Image to enlarge it.)