Summary of Key Points:
- Down markets provide investors with a tremendous opportunity to invest at lower prices. Consider putting additional monies not needed in the next 12-24 months to work. If possible, consider increasing contributions to qualified retirement accounts.
- Take advantage of the increased catch-up provisions outlined in the Secure Act 2.0.
- The velocity of the moves in this market have been very dangerous. Avoid attempts at market timing, aggressively going to cash, and chasing returns. Keep your cool. Successful investors do not allow emotions to impact their investment discipline.
- We expect to see value continue its leadership over growth-oriented companies. Value has historically outperformed growth during rising rate environments which have a greater impact on growth company profit margins.
- We expect the Fed to continue its aggressive stance with raising rates.
- 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. Valuations now matter again. That is a good thing!
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, take advantage of our complimentary financial planning. It’s free of cost or obligation of working with us. Call or write us to learn more: www.polariswealth.com
