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Market & Portfolio Review: 11-7-22

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Are Stocks Going Lower?

As stocks continue to consolidate, investors across the world want to know whether the next big move in equity prices is higher or lower. While it is impossible to answer with certainty, we can lean on what the macroeconomic data is telling us and then compare the historical returns of stocks during similar time periods. The bottom line is that we continue to believe that tighter monetary policy in the form of higher interest rates and a shrinking of the Fed’s balance sheet, during an economic slowdown, is not a positive force for stock prices. In this week’s update, we go into the factors driving these forces and how we are positioned.

Key Takeaways:

  1. The bear market rally lasted a few days longer than expected 
  2. Aggregate earnings for the S&P 500 ex-energy is now NEGATIVE YoY
  3. We see that massive equity inflows chased a dangerous market ahead of the FED

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“expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or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.

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