Market Update

August 2023 Outlook (No Change from July's Outlook)

STOCKS (Owning Style of Investing): The U.S. stock market outlook remains uncertain despite its resilient labor market. On a relatively general basis, international stock valuations look more attractive than the U.S. Plus, if the U.S. dollar weakens relative to international currencies, the exchange rate conversion could cause international stock values to increase.

BONDS (Loaning Style of Investing): If FDIC Insured CDs and U.S. Treasury bond rates have peaked, this may be an excellent time to lock in these historically high rates (compared to the past decade's average rate). For balancing risk and reward, instead of purchasing corporate investment grade bonds only, consider pairing safety (CDs and government bonds) with high-yield bonds and floating-rate loans for more diversification. The current credit fundamentals and higher yields remain supportive, with default rates not looking to increase significantly this year.

Levels of Attraction: This aids in allocating and making additions or withdrawals. This is not a recommendation to sell ultimately out of less attractive investments to purchase more attractive ones. Your allocation should be more than what looks attractive; It must also consider your risk tolerance, goals, current holdings, tax circumstances, and more. 

This material is being furnished for general educational purposes only. The material does not constitute advice or recommendations of any nature, including fiduciary investment advice. Investors should seek professional legal, financial, and tax advice before making any investment decisions.