October/November  2020 Economic Outlook

Again, given the indicators we monitor suggest caution, and recent economic data has improved confidence, recent market volatility is a reminder that there is considerable uncertainty surrounding the outlook for corporate profits and economic recovery.

By some measures, valuations are now at the highest levels in two decades.  Which makes it reasonable to expect more moderate returns ahead and an earnings recovery to occur that are key for markets to take the next step higher.

 Many savvy investors report that they hate losses more than they love gains.  While everyone would like a V shaped recovery, there will likely be permanent scars, to include persistent unemployment.  Which makes identifying defensive strategies that might help keep assets more intact during a severe downturn an idea whose time has come.

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.