Never miss an update! Subscribe to LifePro Asset Management’s YouTube Channel!

Market & Portfolio Review: 05-01-23

Share on facebook
Share on linkedin
Share on twitter
Share on email

U.S. Default… Possible?

While we believe the chances of a hard U.S. default remain minute, the continued dysfunction in D.C. means that there is a possibility that the U.S. may voluntarily move past the debt deadline and defer payments to agencies, contractors, social security beneficiaries, and Medicare providers but almost certainly stay current on bond payments. 

In a world where the sanctity of the U.S. financial bond with its investors is questioned, we think this represents a headwind for the U.S. dollar and a tailwind for alternative stores of value such as precious metals. 

In this week’s update, we will review the continued narrowing stock market breadth and why we don’t own U.S. bank or technology stocks. We will also review what we believe the credit markets are trying to communicate about the debt ceiling and the assets that may benefit from the fiscal austerity that may be required to pass a debt ceiling agreement. 

Key Takeaways

  1. Credit markets are pricing an unusually high risk of U.S. Default 
  2. There are no attractive policy options weakening the U.S. dollar may be the least painful political option.
  3. Gold and other commodities may thrive in a weaker U.S. dollar environment.

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 SEC registered investment adviser. Registration does not imply a certain level of skill or training.  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.

Robert Reaburn

Robert Reaburn

Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management. He works with financial advisors building diverse financial portfolios that best empower their clients with a lifetime of financial security.

Add Your Heading Text Here