October 2021
401(k) Allocation

Risk Off?

At this very moment, models still have us fully invested, but the key indicator we use to pull risk off your portfolios here has been dancing around the trigger to sell at least once a week over the past three weeks.  There are a few things on the horizon that are causing concern and uncertainty for these markets.  When will the Federal Reserve begin tapering back bond purchases in its first move to return to “normal” after almost two years of accommodative policies and how will the market respond to that?  What will the continued issues with supply chain disruptions mean for corporate profitability (earning season kicks off next week) and most importantly, what does forward guidance look like especially going into the height of consumer season – Christmas shopping?  And out of nowhere comes the issues overseas in China with Evergrande and now “Fantasia”, another Chinese property developer – who are failing to meet their loan payments, on top of an energy crunch due to coal shortages.  There are more than a few things bubbling up out there to give pause.  If you are feeling that stress – feel free to adjust your risk level down from the column you normally pick, but we are sticking with the asset allocations similar to last month and remaining fully invested.

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
COLLEGE AND TAX PLANNING
GRAPHIC OF THE MONTH

To download the October 2021 Newsletter: CLICK HERE

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