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Market & Portfolio Review: 4-14-21

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The Spring Counter-Offensive

After a rough March that was characterized by a broad rotation under the hood of the stock market from the secular winners and into low-quality cyclical companies, secular growth stocks appear to be reasserting leadership. Similar to a front line that can ebb and flow, the battle is ultimately won by the army with the most depth, durability and can execute the battle plan. Moving forward, our research suggests that the market will ultimately reward companies with a durable and reliable pipeline of cash flow growth and can succeed regardless of economic growth.

The message in this week’s market review is that the big rotation into boom/bust cyclical stocks appears to be losing team while companies that are considered long-term growth leaders appear to be reasserting leadership. If our research is correct and secular growth stocks resume leadership, then our strategies should be well-positioned going forward. As for the broader market, strong credit markets and continued bearish Wall Street sentiment have historically been a strong contrarian bullish signal moving.

Key Takeaways

  1. Reopen stocks are beginning to cede leadership back to long term growth leaders 
  2. Wall Street strategists remain bearish, which is historically positive for stocks
  3. Credit markets are in strong health, which signals strong economic health

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.

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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