June 2022
401(k) Allocation

There are trades.

Risk off for most of this month felt pretty good.  Well, maybe that takes it a bit far!  But there were days when that felt better than being all in….Have exercised a few demons, however, the market oversold and we did manage to finish the month on a more positive tone.

Recovering segments of the market included those most hard hit – growth stocks and small cap stocks – so we find the 401K model adding slightly in each of these areas.  We are still not at full risk back ON until we see if this trend has the strength to keep building.  There are certainly a few headwinds we are watching right now, between corporate earnings and the beginning of the Federal Reserve’s move to decrease their balance sheet.  The latter is not an insignificant headwind, so we may find this trade is short-lived.  The counterpoint to that sentiment is that there is a whole bunch of cash on the sidelines right now and all it would take for sentiment to become more positive is for the inflation numbers to decline – and the price of oil coming down would be a good place to start, am I right?  Time will tell.

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
GRAPHIC OF THE MONTH

To download the June 2022 Newsletter: CLICK HERE

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