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:
- Slower Economic Growth outside of the U.S and China
- Remaining impact of the pandemic on domestic growth
- Persistent high unemployment
- Potential for high Inflation
- Potential for higher Taxes
Current Investment Tailwinds
- Federal Reserve interest rate policy
- Combined effect of Stimulus packages and possible Infrastructure Spending
- Economic impact of re-opening the economy
- Potential for absence of major war events