If you have read this far, you might think we are cynical/cranky old people (we are) and are predicting a market melt down (we aren’t). We are, however, looking for the point of taking our portfolios back to a neutral weighting and the time is here. For those who read and remember….. we took our portfolios from an equity underweight to an equity overweight position in the Fall of 2022. When the markets go down, and stocks are on sale, that’s usually what the smart money does. As a result, due to the gains across portfolios, our clients are well above their normal stock allocation. We feel it’s time to not only rebalance but make the tactical move back to a neutral (and thus lower risk position) going forward.
Again, and to reiterate, we are tactical asset allocators which means we like to buy low and sell high. Nothing crazy but incremental shifts to take advantage of market moves. Markets give opportunity over time to do so, and we are glad to take the gift when it presents itself. What this means to you is that you will probably see some trade confirms come in the next week or so. We take some gains and reposition into lower volatility parts of the portfolio. Not getting out, just getting back to where the portfolio was before the markets ran higher. Booking some profits as they say on Wall Street.
Looking ahead, economically, nothing in our thoughts or projections has changed. Still looking at higher for longer interest rates, still expect to see the economy slow further, and still believe the market is resilient. We are still patient and still reasonably optimistic. In life, patience is a virtue (or so I’m told) and good things take time.
As always, thanks for reading. If you have any questions, concerns, or just want to chat….don’t hesitate to reach out.
Ed, Frank, & Tammy
Edward Stiles
200 N Union St.
Kennett Square, PA 19348
cell 610-745-1931
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