Insights

While the Fed and the market are fairly aligned in their expectations, fixed income markets are likely to remain somewhat volatile while the fiscal impacts of the new administration’s policies become clearer.  However, higher yields insulate bond investors from interest rate risk and elevated equity valuations make bonds more attractive on a relative basis. Given the level of concentration within US equity markets, we believe that international, value and small-cap equities provide a critical element of diversification.  We advocate building portfolios to achieve your long-term goals as opposed to trying to react to the latest headlines.  Please don’t hesitate to reach out to your advisor to schedule time to discuss your financial plan, including your goals and planning assumptions.