June 2023
401(k) Allocation

No trades.

By: Jake Eggett

At the end of last week, the market exhibited strength driven by two factors: the resolution of the debt ceiling issue and a better-than-expected employment report on Friday. Unlike previous advances seen this year, this rally displayed strong breadth as money flowed into not only the largest companies but also small-caps and mid-caps. While it is still early to determine if this shift in the market environment will persist as a lasting change, it was a noteworthy development deserving serious attention.

The current market behavior suggests an anticipation of a Fed pause, ongoing decline in inflation, and sustained economic strength. If any of these assumptions prove to be incorrect, the market could experience another sell-off. However, if all three assumptions hold true, this could potentially market the beginning of a long-awaited bull market. As we cannot predict the future, our approach remains aligned with market dynamics, adjusting as conditions evolve.

We are fully invested in both our stock and bond portfolios therefore we’ll maintain our risk-on posture with the 401k allocation. While growth stocks have had the strongest trend, we suggest keeping the allocation to value for some defensiveness.

As always, if you have any questions about how to rebalance your 401K, we encourage you to reach out to us at the office and we’ll be happy to help!

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
FRAUD ALERT

To download the June 2023 Newsletter: CLICK HERE

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