Nick Pirsos, Wealth Advisor at MRA Advisory Group, published his updated view of equity markets. You are invited to schedule a complimentary first meeting (via the link below) to discuss his views in greater detail and to learn how to best to optimize your portfolio to better attain your retirement goals.
The new year is off to an optimistic start surprising most investors as January recorded solid gains across the globe, with the NASDAQ leading the way up 11.5%. Much of the enthusiasm reflects expected slowing of interest rate increases as inflation trends appear to have peaked.
Has the Bull Market Started?
As we turn to the month of Love, investors are trying to ascertain if Mr. Market shot his Cupid’s arrow, having turned Bullish back at the October 2022 low, or is the recent three-month run thru January simply a short-term romance and the continuation of a Bear Market rally?
In terms of full-year 2023 expected market performance, while there is compelling empirical evidence supporting the old Wall Street axiom “as goes January, so goes the Year”, the saying is limited in so far that it does not speak to near-term monthly volatility nor strength in quality of overall market performance.
As noted in our January 2023 Outlook piece, we advised and positioned our clients to maintain a near-term tactical trading overweight in equities, which has captured the recent upside, notwithstanding our view that the market had not yet transitioned to full-fledge Bullish conditions. The next few months we expect will shed light on if the investment market’s recent love is for real. We need more convincing before putting a ring on it.
The onset of a Recession we believe is a foregone conclusion as depicted by the 10-Year Treasury less 3-Month curve, recently published by GMO. It can even debated that a recession started in 2022, or perhaps a short one ran its course, and a new one is now formulating.
Should investors be scared of an impending recession? One key determinant will be its duration and severity. Another will be investment portfolio allocations undertaken NOW.
Recessions driven by Fed Interest Rate hike cycles have yielded various outcomes. To paraphrase Mr. Gump, Recessions and the impact on the stock market, are like a box of Valentine’s chocolates coming in various shapes, sizes, flavors and performance.
Source: Charles Schwab
Unsure which (investment) sweet treat to select? Call us today and we can help position your portfolio for your optimal performance. Don’t wait for the inevitable last coconut-filled bon-bon, when a chocolate-covered strawberry is also on the table.
ACTION PLAN: “How do you know when you have arrived, if you don’t know where you are going?”
We can help you align and optimize your Savings and Retirement funds with your Lifestyle Plan to current and expected investment market conditions.
Specifically, we can assist you with these and other personal advisory services:
- Building consistent monthly investment income.
- Strategies to mitigate monthly equity volatility.
- Identifying your portfolio’s current and long-term expected risk/opportunity preferences.
- Capital gains tax optimization.
- Or any other personal Financial Planning and Retirement Savings needs including College Planning/529 Plans, Insurance (Life, Disability, Group Health), Wills, and Estate Planning.
- Small Business owners, we can help improve employee retention creating low-cost 401K plans, Pension Plans, and Group Medical Health Insurance programs and maximize owner tax deferred contributions.
Feel free to share our views with family or friends who are also confronted with these important life 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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Advisory Services are offered through MRA Advisory Group, a Registered Investment Adviser. This information was developed by Broadridge, an independent third party. 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. The 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.