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:

  • Pandemic is persistent, with continuing economic impact
  • Federal Reserve embarks on rate tightning cycle and unwinding of quantitative easing
  • Slow economic growth in Europe, Japan, and China
  • Revaluation of individual Bonds

Current Investment Tailwinds

  • U.S. corporate earnings – upward trend continues
  • Rebound in the labor markets, low unemployment rate
  • New disruptive technologies may increase productivity and lower cost of doing business
  • Supply chain repair – slow but steady
  • U.S. consumer is healthy, but inflation is taking a toll
  • Congress appears to have no appetite to raise taxes or to significantly expand domestic spending