We expect to see value show its leadership over growth companies. Value has historically outperformed growth during rising rate environments which has a greater impact on growth company profit margins.
We believe that the labor shortage will continue to impact our supply chain and impact inflation. We expect the Fed to continue its aggressive stance with raising rates until they start to see some signs of inflation slowing.
Pay attention to the valuation of your stocks, as it will be very hard to outperform the market with a portfolio full of overvalued companies.
We continue to “pound the table” about underweighting or even eliminating your bond allocation. Bond prices will be under pressure as the Fed aggressively raises rates.
Clients, talk with your Polaris Wealth advisor about getting a “second opinion” on any assets away from us. Have your financial plan up-to-date, and make sure your allocation meets your needs (risk and return).
If you aren’t a client of Polaris Wealth, take advantage of our complimentary financial planning. It’s free of cost or obligation of working with us. Coordinate with your Schwab financial consultant to schedule a meeting.
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