The PWM Investment Committee has been busy this past month analyzing how the current rate environment will affect your portfolios. As discussed in this J.P. Morgan article, “Avoiding the Cash Trap”, there is a risk of staying too long at the cash party. Now that we are more than likely through the rate hike cycle, the new question we are asking ourselves is “When is a good time to begin extending duration to avoid being overallocated to the short end of the yield curve when it normalizes?” We continue to keep an eye on this.
We also wanted to take a moment to say, Happy Mother’s Day to all the moms out there, and congratulations to all of the Spring graduates!
On May 22, we will be hosting our CLEAR Insights webinar. This quarter the topic is “Social Security – When should you start receiving retirement benefits?”. If you haven’t already, take a moment to RSVP below. There will be a lot of valuable information shared, and we’d love for you to join.
"Earlier this year, many investors were convinced the U.S. Federal Reserve was on track to reduce interest rates four times by the end of 2024. Back then, it struck me as wishful thinking. Today, given higher-than-expected inflation, I think it's even more likely. I believe there's a strong chance we will get no rate cuts at all this year - and that markets should be fine without them."
"During the first quarter, U.S. equities shrugged off ever-changing expectations for monetary policy with relative ease, climbing 10.6% despite a sharp hawkish repricing in policy expectations. However, an unexpected jump in inflation in March sparked the resurgence of the "higher for longer" narrative, leaving equity valuations elevated, and vulnerable, at the onset of the 1Q24 earnings season."
Sending lots of love to all the incredible moms out there this Mother's Day and every day!
