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A year after cutting equity exposure from an overweight position to marketweight, we are focusing on key indicators to help determine what’s next for the markets. Here are our key takeaways from BWM Financial’s Mid Year Update Webinar:
- The secular bull market will favor an overweight to equities… at the right time.
- Market momentum is conflicting with market fundamentals.
- The global economy slowdown continues to persist. The U.S. is still avoiding recession.
- Stocks and bonds are giving conflicting signals about the future of the markets.
- Bulls are focusing on Fed cuts, corporate buybacks, and the hope of a trade war resolution.
- Bears are focusing on reasons for Fed cuts, the slowing global economy, the inverted yield curve, and the possibility of a US recession.
- BWM is still taking a “wait and see” approach and a conservative allocation at the present time. We believe the portfolios are well positioned to take advantage of future opportunities that might arise.
Now is a good time to review risk tolerance, large holdings of employer stock, and account allocations for investments outside of BWM Financial. We will continue to monitor our objective indicators for signs that it is time for a shift in investment strategy.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.