What is it?
Last week stocks started without much change. On Wednesday the Fed announced its decision to leave interest rates the same.
Stocks finished the week strong after moving up significantly on Thursday and Friday. The market does not expect the Fed to raise interest rates anymore before they start to lower them.
Why does it matter?
We are managing risk after the rally and only adding to specific positions that we believe have the potential to rise from here. The markets made a noticeable move after the Fed’s announcement.
However, we are not all in just because of a two-day move in the markets. While the Fed may be done raising rates, they could hold rates higher for longer which may be difficult for companies to navigate. If companies have trouble with high rates, the stock market could continue down before reaching a new high.
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.
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