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

Market & Portfolio Review: 10-24-22

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

The End of Free Money

Over the past week, existing new home sales, manufacturing activity, and retail sales all reported a continued deceleration of growth, with service and manufacturing activity reporting an outright contraction. A combination of slowing growth and rising interest rates is historically challenging for stocks. Stocks rallied on Friday and Monday following a WSJ article saying that the Federal Reserve was considering raising rates “only 50 bps” in December after a 75 bps rate hike in November. We believe it is ridiculous to buy stocks as it does not change the narrative of the Fed raising interest rates into a slowdown. In this week’s market update, we discuss why we remain defensive until the economic rate of change improves or the Fed starts to cut interest rates.

Key Takeaways:

  1. Pricing around hedges has become more attractive, and the macro backdrop remains firmly negative
  2. Interest rates are grinding higher across the globe despite Monday’s rally
  3. Investors are beginning to take out protection against corporate and sovereign debt

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