Mid-Year Outlook
| 2023
The Recession Obsession
Backed up by client data, here are actionable ideas to help you position your portfolio for weaker growth, but stronger capital markets.
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Idea no. 1
Rebuild your equity portfolio now for the next bull market
Our clients were right to trim their equity exposure last year. Now it’s time to reposition portfolios for the next bull market.
Idea no. 2
You probably stay too close to home with your investments
Over two-thirds of our U.S. clients have no exposure to China and half are underweight Europe. Clients in Europe and Asia have a similar “home bias.” Valuation discounts could make this moment a good entry point.
Idea no. 3
Manage your concentrated positions
If you have wealth concentrated in a single asset, you know a big loss will bite. But you might not understand the full impact on your financial plans.
Idea no. 4
You may hold too much cash and not enough bonds
In the last 12 months our clients significantly boosted their allocations to cash and short-term fixed income. That made sense as rates rose. But over the next 12 months clients will likely need to reinvest with lower rates.
Idea no. 5
Know the risks – and opportunities – in regional U.S. banks and real estate
Rising rates can wreak havoc. Risks now look acute for regional U.S. banks and commercial real estate. But are there profits to be found in the pain?
