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:
- Low Yield on Bonds and Fixed Income
- Federal Reserve tightening cycle
- Heightened International Tensions
- Equity Markets at Historic Highs
Current Investment Tailwinds:
- Inflation in Check
- Job Creation and Higher Hourly Earnings
- Corporate Earnings at Historic Highs
- Consumer Savings and Spending Rate
- Legislative Progress on Tax Policy and potentially on Health Care and Infrastructure Spending