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After moving to an underweight position in equities in 2018, we are closely watching our indicators to see what is next for the markets and our portfolios. While our indicators are giving mixed signals, our portfolios remain in a defensive position despite the recent market rebound. However, we believe they are well positioned to take advantage of any buying opportunities that arise. Here are our key takeaways from BWM Financial’s most recent webinar:
- Pros: The Federal Reserve appears to be on hold with their campaign of interest rate hikes, trade talks with China appear to be moving forward, and market breadth (momentum) has improved since the December lows.
- Cons: Market sentiment is now too optimistic, economic data is surprising to the downside, the global slowdown remains intact, and earnings expectations have deteriorated which could be a headwind 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.
