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