There has been a lot of heavy subject matter in the past few Financial Fitness write ups, so I decided to keep this one light. The summer months in the financial markets are also generally slow on data, so a perfect time for this.
As you all are acutely aware by now, from early last year until early 2023 we have been keeping a large amount of cash and cash equivalents (roughly 50-70%) in client accounts as a “shock absorber”. As we progressed into 2023 I have slowly and thoughtfully begun to nibble back into our favorite funds bringing cash and cash equivalents closer to 30% of the total account values.
My prediction is that we will see a recession within the next 12 months. I expect it to be short in duration and shallow in depth, but still encourages me to hold the 30% cash for three reasons: first, it does not participate in the everyday market volatility, which I expect to continue. Second, we earn roughly 5% annualized as we wait for more clarity and stability. And third, gun powder on the sidelines will come in handy when we are given a buying opportunity at lower prices.
The Wealth Strategies Group Trifecta continues to remain in play: Don’t make our client family poor, Five Year Money, and no one knows the future!
As you and your families are enjoying the summertime sunshine and activities, please know that I am here and available to discuss any comments, questions, or updates you have!
I am interested in your thoughts, comments, and questions!
Brittany N. Jarocki, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.