Cautious Start to the Week
What is it?
Markets were under moderate pressure this morning. News around Chinese real estate came out yesterday. Their markets felt the impact with stocks down over two percent on Monday.*
Why does it matter?
We have limited exposure to Chinese derived investments. International stocks seemed to be impacted more. The U.S. markets brushed off that news and finished slightly higher on most benchmarks. Stocks were down last week so this is a modest step in the right direction. However, the market has not had much optimism lately with many stocks falling to new lows for the year.
Markets are Struggling in September
What is it?
Stocks struggled to move up to higher levels last week. That remains the case so far in September. The Fed has held strong to the narrative that they will keep rates high. Interest rates staying elevated could help the Fed tame inflation.
Why does it matter?
The market could hit a breaking point if higher interest rates are maintained for too long. We are adjusting the portfolios this week based on our analysis. Broadly speaking we are selling some stocks to reduce our risk exposure. We will use our tactical approach to buy and sell into positions as we see fit within the portfolios.
Other articles we found interesting this week:
Current 401(k) portfolio
Our last 401(k) portfolio reallocation: 8/14/2023.
Want more information?
The weekly market insight provides a window into the process we use in our investment management process. At Breakaway, we believe markets are always changing and require a nimble yet data-oriented approach.
Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.
*Eren Sengezer. “Markets turn cautious to start new week”. FX Street. 9/25/2023. https://www.fxstreet.com/news/forex-today-markets-turn-cautious-to-start-new-week-202309250626
**Vivien Lou Chen and William Watt. “U.S. stocks try to shake off rising yields as equities face losing September”. MarketWatch. 9/25/2023. https://www.marketwatch.com/story/s-p-500-futures-bounce-off-three-month-low-24458534?mod=market-snapshot
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