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Q4 2023 Portfolio Changes

Q4 2023 Portfolio Changes

October 26, 2023

In our last quarter's video, we delved into the narrow trajectory of this year's market rally, prompting us to strategically adjust our investment positions. We seized the opportunity to lock in gains from select holdings, reducing our exposure to US Large-Cap stocks and tech stocks as a precaution. The third quarter brought about a decline in both stock and bond prices, raising concerns. But as the dust settled from this historically weak seasonal phase, we discerned a silver lining amidst the market volatility.

We believe this pullback has unveiled a unique window of opportunity. Strengthening indicators in the US economy, much more robust than anticipated, have bolstered our confidence. Corporate earnings have pleasantly surprised, consistently surpassing expectations, while analysts have steadily revised their estimates upwards since July. These reliable signals have historically heralded positive trends in future stock returns. Additionally, the Federal Reserve's GDPNow growth estimates for the US have doubled, painting a promising picture for the future.

On the front of interest rates, there's a nuanced outlook. While the Fed's stance has softened, the prevailing consensus in the market echoes a 'higher for longer' sentiment. This has steered our focus toward duration, allowing us to capitalize on the current higher yields while they persist.

This quarter, we have strategically leaned back into US growth and tech stocks, driven by these optimistic indicators and market dynamics.

As always, your financial security is our utmost priority. If you have any questions or concerns about your portfolio, we're just a call away.

Click on the Video below to hear Todd discuss our latest portfolio changes!