Positioning The Investment Portfolio - What Do We See Going Forward

Asset Management Resources (AMR) uses our Active Allocation approach to recognize what’s happening in market and adjust based on a client’s risk profile.

During the first half of the year, AMR set up the investment portfolio to protect clients against inflation, while another part was setup for recovery. During inflation we took less interest rate risk on the bond portfolio, less beta in the equity portfolio, and were underweight in equity as a defensive stance. We kept some assets that could rally in the face of falling inflation and maintained some intermediate duration bonds. AMR went overweight in companies that we thought were getting punished too much (e.g., recognizable mega-cap names), that recovered nicely.

We have seen the big rally from mega-cap growth stocks in the first half of this year. The reality is that there are other stocks that can benefit from falling inflation and that haven’t’ caught up –some small cap and high dividend yielding stocks.

Where some people might be more excited about stock market today than last October – that is the opposite way to think. We are more interested in stocks that can move in the future – those who are valued on cashflow, growth, and consistency.

If you’d like to view the latest “Economic & Market Update” webinar, where we cover Q2 performance and what we see for the future, visit https://amrfinancial.com/resource/webinars/ or our You Tube channel @somethingmorewithchrisboyd4246. 

You may also be interested in reading the latest “Investment Insights” newsletter, where Brian Regan, CFA, AMR’s Chief Investment Officer reviews financial news that he thought was based on false narratives, such as the exaggerated mania over inflation. AMR’s newsletters can be found at https://amrfinancial.com/media/eresources-review/.

AMR’s next financial planning webinar “Are You Ready for the Retirement Red Zone?” will be held on September 20, 2023 @ 10 a.m., ET via Zoom. Register here - https://us02web.zoom.us/webinar/register/WN_TJi6Jo0uQmq2b-IBSn4K1w#/registration 

Recorded July 27, 2023.