Flattening the Fear Curve
In this week’s edition of the LifePro Asset Management Market & Portfolio Review, our head of Wealth Management, Robert Reaburn, will provide an update on where markets stand two months after the onset of the COVID-19 outbreak, how much bad news is potentially priced into asset prices, and how we are positioning client portfolios over the next 12-24 months as long term rate of return assumptions are adjusted for various asset classes such as equities, bonds, and real estate.
Specifically, Robert will walk clients through a quick COVID-19 update, along with a discussion on how different infection rates can be expected to impact the stock and bond markets over the short and long term. We are also going to take a close look at the price action of the S&P 500 over the last month and how the stock market selloff compares to other periods of market weakness throughout history. Additionally, we will take a look at how asset prices react to financial liquidity, economic data, and how much weight, as investors, we want to place on each to understand the long term direction of asset prices such as stocks.
We are also going to be taking a look at the number of stocks making new 52 week highs vs. the number of stocks making 52 week lows to assess the intensity of the selling over time and whether that pressure to sell is growing more or less intense, and what that means for the stock market going forward. Additionally, we will provide an update of the VIX structure, which provides insight into the level of demand for safety, along with assessing whether the appetite for risk is recovering or continuing to deteriorate. Lastly, we are going to look at the ongoing appetite for negative yielding bonds in Europe and Japan, along with a health check on the corporate bond market to measure the impact of recent Federal Reserve rescue programs.
The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.
