Discussing the current market state and why you need to think twice about that bond fund
January 31, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this past week. My name is Armand Glassman, and I am a partner at Wealth E&P and work as the Chief Portfolio Manager and a Certified Financial Planner™.
Last week, the three major stock indices were up slightly, although there were some inter-week declines. The NASDAQ 100 was down over 3% at one point, though it did manage to come back up at the end of the week.
Bonds, on the other hand, continued to drift lower and have been drifting lower throughout this year. They were down almost 2% year-to-date. Part of the reason for that, and probably the main reason, is that the Fed continues to signal that it intends to hike interest rates. As interest rates go up, bonds go down in value. So, those of you who think that bonds will bolster a flagging stock portfolio may be in for a rude surprise.
We continue to monitor markets closely, and our All-Weather signal has been showing signs of being much more defensive in the past two weeks. In fact, we've made some defensive trades in our existing tactical strategies.
If you have any other questions for us about your portfolio or financial situation, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our Market Minute next week!
At Wealth Enhancement & Preservation, we are here to serve as your financial advisor and source of support in the Alpharetta, GA, Cartersville, GA, and Charleston, SC areas. Our advisors are dedicated to simplifying the complexities of the financial world and as your advocate, we strive to learn about your most valued goals and dreams. From individual investors to entrepreneurs, our services are designed for your success.