April  2021 Economic Outlook

The economy is in position to capture momentum the last half of this year, thanks to greater vaccine distribution, S&P 500 earnings expected to reach all-time highs, and the combination of central bank and government stimulus.

 However, equity markets have been on an unprecedented run since March 2020 and what is also at an all-time high are the debt levels for consumers, companies, and countries. Which suggests there is a strong possibility for a serious correction in coming months. Since investors do  not need to see the future to prepare for it, now is the perfect opportunity to determine how much loss is acceptable, followed by designing portfolios in such fashion that accounts become defensive when appropriate.

The Investor’s Advantage Risk-O-Meter reflects the company’s overall opinion on the economy and the stock market.  Leading indicators include the US Economic Outlook, Monetary Policy, Fiscal Policy, Leading Indexes, Global Economic Outlook, Corporate Profit Growth, Inflation, Equity Market Valuation, and Geopolitical Risk.

Do you know how much risk your portfolio and retirement accounts are taking? Understanding the risk of the economy and how it relates to your money is crucial. However, this means nothing if your investments aren’t designed around YOUR risk tolerance and YOUR financial goals. We’ve partnered with the fantastic folks at Riskalyze to offer a free tool that pinpoints your Risk Number so that you may informatively guide your portfolios asset allocation.

The information presented does not involve the rendering of personalized investment, financial, legal or tax advice.  This information is not an offer to buy or sell, or a solicitation.