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After a move back to benchmark weighting in equities for the first time in nearly 3 years, we are shifting our focus on what is next for our portfolios. While our indicators are giving mixed signals as to what the next allocation shift will be, we believe our portfolios are still well positioned based on the weight of the evidence. Here are our key takeaways from BWM Financial’s most recent Market Outlook Webinar:
- Pros: 2018 earnings have benefited from the U.S. corporate tax plan that was put into place. 2019 earnings growth continues to look solid which will help keep high valuations in check, and central banks remain accommodative.
- Cons: A decline in the breadth of the stock market, narrow leadership within the market capitalization of the world stock markets, high valuations on U.S. equities, the potential for continued trade conflict, and rising interest rates could all be headwinds for equities.
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.