The three quarters of 2021, in a word, have been overwhelming for investors. We have seen strength in the economy that I have not witnessed in my entire career, powered by an unprecedented amount of money being poured into the country.
But where are we headed, and how should you adjust your retirement portfolio?
On Thursday, July 29th, I held a virtual lunch webinar on behalf of Blooming Tree Wealth Management. The theme of the talk, which covered the LPL Mid-Year Outlook, was “speeding slower.” We also covered the challenges, consequences of, and opportunities within a hot economy. The event was free to attend and hosted via GoToMeeting.
Here is a quick recap of what was discussed during the virtual lunch webinar:
- Underlying fundamentals are strong, meaning we should be able to weather small storms.
- The S&P is likely to hit 4500 by year’s end according to experts, 5000 by the end of 2022.
- We are still speeding ahead, but at a slower rate.
- Tax Reform is coming, meaning we will likely see an increase in tax rates.
- It may be time to reevaluate the fixed income portion of your portfolio due to lackluster performance and little to no upside.
- Owning stocks is a TINA (there is no alternative) trade.
- Make sure you are comfortable with what you own.
- Know what you own.
- Know why you own it.
- If you have gaps in areas (too much fixed income or not enough in international markets) create a plan to fix it.
Actions to Take
The easy money to make in the stock market has likely come and gone. Now is the time for active management of your account. Also, keep your eye on earnings during the last portion of the year. If you are one of my clients, you have likely heard me say many times, “earnings are the horse that drive the stock price cart.”
I recommend reviewing the 2021 LPL Mid-Year Outlook here.
Stay tuned for another webinar coming up soon as we help you prepare your portfolio for the end of 2021 and the first quarter of 2022. If you have any questions or would like assistance with your retirement portfolio, please contact our team at Blooming Tree Wealth Management here.
Note: All entities are separate and not affiliated with LPL Financial.