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401k/403b Traffic Light Advisor

Red Light: Consider moving to cash and lower risk assets, preserve value.
Yellow Light: Consider balancing lower risk and moderate risk assets, avoid higher risk assets, seek moderate return.
Green Light: Consider increasing higher risk assets, seek higher return.

Current Investment Headwinds:

  • Economic Impact of the Coronavirus Pandemic
  • Slower domestic and global economic growth
  • High Unemployment rate
  • Potential new regulations and possible higher tax rates

Current Investment Tailwinds

  • Federal Reserve interest rate policy and credit market support
  • Stimulus packages enacted by Congress to combat the coronavirus economic impact
  • Possible rapid rollout of one, or more, vaccines to U.S. and global populations
  • Potential easing of economic restrictions as the coronavirus threat fades with widespread vaccination
  • Potential global economic ramp up after widespread vaccination
  • Potential for mutually beneficial trade agreements, post pandemic
  • Possible absence of major war events