Nick Pirsos, Wealth Advisor at MRA Advisory Group, gives his thoughts on the market. Below is Nick’s June recap. Nick offers a complimentary first meeting (via the link below), learn more about him and schedule your complimentary meeting today for assistance in positioning your portfolio for the fast changing business climate.
By any measure, investment markets had a difficult first half of 2022 with all geographic equity regions down YTD (thru 6/24) ranging from -6.7% in Hong Kong to -26.7% for US NASDAQ listed companies.
Within the US, the same broad-based weakness has taken place as all S&P 500 sectors declined in the first half of the year. The one exception being the Energy sector.
Is the US heading for an economic soft or hard landing? Knowing where we have been is helpful but determining where we are going is the challenge.
In terms of Recession, put us in the investment minority camp as we expect the National Bureau of Economic Research will look back and state a downturn has already started. If correct, and coupled with typical anticipatory investor behavior of market conditions, we could be closer to a sustainable stock market recovery than most expect.
As always, we are mindful however that unforeseen Black Swan events could elongate matters. While Russia and inflation/interest rate developments could heighten further, they are probably largely baked into current expectations. One item not gathering much attention is the Japanese Yen which is down 20% YTD vs the USD. If the Bank of Japan’s ongoing support of the Yen were to falter, currency markets we expect could usher in further equity market volatility.
For the upcoming quarter, equity investors may still try to find their longer-term footing and we expect swift periodic reversals will still be in play. A potential positive catalyst of support later in the year is the November US mid-term elections. If current polling data is to be believed and if were to hold, the US will be returning to divided government. More often than not, political gridlock equates to stock market goldilocks.
Given the still murky economic firmament, effective diversification is best suited for current conditions. The following table provides helpful long-term equity sector asset class performance data.
Reach out to us if you need assistance creating an effective diversified investment strategy for current conditions (and the long haul) or if would like to discuss any of the following in greater detail:
- Our forward twelve-month Equity Market Outlook.
- Strategies to mitigate monthly equity volatility.
- Identifying your portfolio’s current expected risk/opportunity level.
- Enhancing your portfolio’s performance.
- Capital gains tax optimization.
- Or any other personal Financial Planning and Retirement Savings needs including Insurance (Life, Disability, Group Health), College Planning/529 Plans, Wills and Estate Planning.
- Small Business owners, we can help you with employee retention creating low-cost 401K and Pension Plans and Group Medical Health Insurance.
Feel free to share our views with family or friends who are also confronted with these important Wealth Planning decisions. MRA Advisory Group and I are ready to discuss all your investment concerns to best position your Retirement Goals.
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To get started with Nick, click the link below. Your answers and solutions are one click away! https://mraadvisory.com/nickpirsos/
Advisory Services offered through MRA Advisory Group, a Registered Investment Adviser. It is general in nature, is not a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance is no guarantee of future results. Nothing herein, nor any attachment, shall be considered to constitute (i) an offer to sell, nor a solicitation of an offer to purchase, any security or (ii) tax or legal advice.