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Equity markets continue to reach all-time highs and the US economy is currently showing little threat of a recession. Because of this, our portfolios remain overweight equities – primarily overweight US large cap equities and diversified international equities. Here are our key takeaways from BWM Financial’s most recent Market Outlook Webinar:
- Pros: Strong earnings growth has continued to support the bull market. We continue to see improvement in the global economy, with NDR’s measures of economic breadth making multi-year highs.
- Cons: Although relative values are reasonable, the elevated absolute valuation of US equity markets carries extra risk. US equities are overdue for a correction, but this may happen within the current secular bull market. Slowing earnings growth could be the correction catalyst.
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 closely monitor our indicators to dictate the best course of action based on the weight of the evidence.
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.
