Sticking With Current Asset Allocation<\/strong><\/h2>\n\n\n\nThere are few things that cause me grief more than knowing our clients have 20% of their normal stock allocation sitting in boring money market funds while stocks are up double digits. It’s been a drag on year-to-date performance, for sure. I kick myself for not re-allocating at least a portion of that cash back into the market when stocks were down 20% late last year. <\/p>\n\n\n\n
But we\u2019re tasked with guiding you towards your financial goals over the long haul. And the thing that keeps me on the \u201csidelines\u201d is my belief that the next decade is going to prove much more difficult for investors to navigate. I\u2019m wary of going back \u201call in\u201d on stocks until the full impact of the historic rise in Federal Reserve short-term rates is made apparent. Waiting for policy time lags (i.e. the time from when rates rise to when the impact is felt) always seems to take longer than you think it will. But history says we WILL feel those effects.<\/p>\n\n\n\n
Even with the performance drag from cash, client portfolios are up almost a full year\u2019s worth of gains that we project on a long-term basis. That means those long-term goals of retiring early, or traveling, or donating to favorite charities is on-track. And those are the things that really matter.\u00a0<\/p>\n\n\n\n
Next Steps in this Bullish Market<\/h2>\n\n\n\n You will probably see more trading activity in accounts in the future as we\u2019ll be even more tactical to take advantage of market dislocations when they arise. For example, we may reallocate some money market funds back into stocks temporarily, if prices become attractive. We make each investment decision in the context of where we believe we are in the long-term cycle. <\/p>\n\n\n\n
We as a team are extremely grateful for every one of you. It\u2019s fun to help clients work through new challenges and opportunities. As always, the entire team is here to serve you to answer questions and work on new financial goals or issues you may have.<\/p>\n","protected":false},"excerpt":{"rendered":"
Early 2023 has been a banner year for investors. Are the bulls back in control of the stock market? We review first half performance and give our thoughts on some hot topics in finance: is a recession still coming, and what does that mean for stocks and bonds?<\/p>\n","protected":false},"author":11,"featured_media":12292,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11],"tags":[148,176,313],"acf":[],"yoast_head":"\n
Are the Bulls Back In Control of the Stock Market?<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n