Discussing a few positive market signs, such as the large increase in Cash Balance for BOA Customers
May 3, 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 Jake Sanders, and I am a partner at Wealth E&P and operate as a Wealth Advisor and Certified Financial Planner.
Last week in the markets, we saw again a decline in all three of the major indices. This was largely due to the sell-off we saw on Friday. So, what's really going on out there?
Well, there's a lot of debate amongst the signals that we follow and external to those. Our All-Weather score here at Wealth E&P is right in the middle, and this is pretty consistent with what we're seeing more broadly. So, what do we have to be concerned about? Well, inflation is still there, and most of you know that. There is also geopolitical risk, which is pretty common, but this is especially accelerated by the Russian and Ukrainian situation; the war does not seem to be improving at all right now.
However, on the optimistic front, we have a lot of good news. Bryan Wesbury, one of the economists that we follow pretty closely here, still thinks that we could have a positive year in the S&P despite being down year to date. Bank of America would agree with them; they're pretty bullish on what the American consumer situation is. This is due to their cash positions, especially relating to where they were pre-COVID. With earnings season in full swing right now, there are more companies that are beating their earnings expectations than they historically have been with that five-year average in consideration.
What does that mean for your portfolio? Well, we're also mixed. We do think that security selection is very important right now, and we do have some defensive positions depending on where you are. If you'd like to talk to us about that, we'd be more than happy to do so!
If you have any questions about any of this, we would love to hear from you. If you have any other questions for us about your portfolio, financial situation, or retirement, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our next Market Minute!
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