It’s been an interesting year. Roughly six stocks have produced the majority of the Nasdaq’s gain this year, while most equities remained static. Fortunately, the majority of our investors are profiting, transforming a flurry of negative emails into positive ones. The question posed to me frequently is this: Is this situation temporary, the advent of a bull market, or should we shift our portfolios from Value to Growth, or simply wait?
It’s a valid question, so let me peer into my crystal ball…
I’m elated to see the overall markets seemingly moving upward, despite the endless conversation about an impending recession and the Federal Reserve’s pause on interest rate hikes. However, I also want to maintain a level of caution, as the tech rally has been surprisingly narrow, featuring only a select few equities rather than a widespread rally. This select group, though, has experienced a significant run, partly due to the ongoing discussion around AI, or Artificial Intelligence. Regardless of whether you fear or dislike it, AI is here to stay. Moreover, for those interested in market information and who believe that cryptocurrency is the next frontier, Blackrock and Fidelity have announced plans to launch Bitcoin/Crypto ETFs.
My suggestion is patience. Anticipate a brief downturn or stagnation in the markets, and then seize the opportunity this presents. August? October? Historically, these are the two worst months for equity returns within the year. Please feel free to reach out to me anytime; let’s discuss how your goals, risk profile, and portfolios can meet your financial needs.
As we commemorate our nation’s 247th Independence Day, I pose another question: Are you on track to achieve financial independence? What does that concept signify to you?
Here are a few characteristics that could define financial independence:
- Current on all debt or essentially debt-free in retirement
- Ability to travel as desired
- Availability to spend time with your children and grandchildren
- Freedom to enjoy your favorite hobbies—golf, cooking, wine, crafts, etc.
- Confidence and peace of mind regarding your finances
- Ability to sleep without anxiety
- Freedom to enjoy time with your spouse or significant other
- Regularly meeting with your Financial Advisor and leaving these meetings confident that your needs have been addressed and you’re on the right path.
If we haven’t had a meeting or a Zoom call in 2023, let’s arrange one as soon as possible. If you haven’t met with your Financial Advisor, then please give us a call at 925-314-8503 or email me at firstname.lastname@example.org. I am eagerly anticipating our time together. Happy birthday, America!
All my best,
Elliot Kallen, President