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. Our market update comes from reviewing many of these valuable resources listed below. As a result, these third parties do not represent our firm's beliefs or any of the companies we represent. These resources are for educational purposes only and are not recommendations.CNR Speedometers℠ Forward-Looking Three to Six Months (City National Rochdale) JP Morgan's Guide to the MarketsT. Rowe Price Global Asset Allocation ViewpointsBrian Wesbury - The Antidote to Conventional WisdomWSJ's P/Es & Yields on Major IndexesUS Stocks PerformanceWorld Stock Market PerformanceBank CDs and Money Market Rates and TreasuriesBond RatesMortgage Rates & TrendsMortgage Rate PredictionsAdditional Resources (Historical impact of inflation, war, or rising rates on the market) PAST MARKET UPDATES May 2023 Market Update: Caution – Signs of Recession Ahead Most of the allocations have stayed the same from last month. Defensive portfolio positioning remains the best strategy. Consensus earnings estimates may be too optimistic. Income is again an important driver of performance. "Overweight" means a more attractive buy, and "Underweight" means a less attractive buy and more attractive sell. These are not recommendations, just tactical observations to help guide you. Consult with me before making any withdrawal or purchase decisions. T. Rowe Price Global Asset Allocation April 2023 Market Outlook Summary Learn in more details what areas of the market look attractive and which do not by visiting: T. Rowe Price Global Asset Allocation April 2023Example: In the sample chart below "Overweight" means attractive and "Underweight" means unattractive. For new contributions you may consider purchasing a money market fund short-term and for withdrawals you may consider reducing some of your equities/stocks and bonds. These are not recommendations, just observations. Consult with me before making any withdrawal or purchase decisions. Watch My Summary Example of an Equity Allocation As of April 2023Equity TypeNormalTacticalRelativeU.S. Large Companies52.5051.30-1.20U.S. Small Companies13.5014.30+0.80International Large Co. 21.0019.40-1.60International Small Co. 4.004.10+0.10Emerging Markets 4.005.901.90Real Assets Equities 5.005.00+0.00In all cases, consult with your advisor before making any changes. These are observations and not necessarily recommendations. Learn more About Attraction Levels Example of a Bond/Loan Allocation As of April 2023Bonds/Loan TypeNormalTacticalRelativeU.S. Corp. Quality5551.3-3.7International Quality1514.0-1.0U.S. Treasury 1011.0+1.0Global High Yield79.3+2.3Floating Rate Loans 34.0+1.0Emerging Markets 1010.5+0.5In all cases, consult with your advisor before making any changes. These are observations and not necessarily recommendations. JP Morgan's Alternative View Example of an Equity Allocation As of March 2023Equity TypeNormalTacticalRelativeU.S. Large Companies52.5051.30-1.20U.S. Small Companies13.5014.300.80International Large Co. 21.0019.40-1.60International Small Co. 4.004.100.10Emerging Markets 4.005.901.90Real Assets Equities 5.005.000.00In all cases, consult with your advisor before making any changes. These are observations and not necessarily recommendations. Learn more About Attraction Levels Example of a Bond/Loan Allocation As of March 2023Bonds/Loan TypeNormalTacticalRelativeU.S. Corp. Quality5551.3-3.70International Quality1514.3-0.70U.S. Treasury 1010.50.50Global High Yield79.32.30Floating Rate Loans 34.31.30Emerging Markets 1010.50.50In all cases, consult with your advisor before making any changes. These are observations and not necessarily recommendations. JP Morgan's Alternative View PAST MARKET UPDATES Market Perspectives Update November 23th 2022 - It’s only been one month, but the consumer inflation surprise is encouraging. October consumer prices rose less than forecasted, pushing the annual rates down for both headline and core measures considerably from the previous month. Learn more in this months' Market Perspectives, featuring Charles Boettcher, Managing Director and Senior Portfolio Manager. Watch Video Past Messages of Market News You Can Use Market News You Can Use Watch our Sept. 16 2022 Video report on the current market conditions, opportunities, strategies you need to know to plan your next action steps. However, remember successful investing is goal-focused and plan-driven, not market-driven.Sources:JP Morgan's Daily Guide to the Markets (Sept. 16th 2022) - Pages: 1, 45, 41, 39, 49, 47, 6, 5, 13, 25, 27, 28, 31, 16, 43Empower - The US may Be headed for recessionAmerican Funds' Guide to Recessions Watch June 7th 2022 Watch our June 7th video report on the current market conditions, opportunities, strategies you need to know to plan your next action steps. However, remember all successful investing is goal-focused and planning-driven. All failed investing is market-focused and current-outlook-driven.Sources: Has CNR’s Outlook for Stocks Changed?How long do recessions and bear markets last?Midterm Election Year Intra-Year PullbacksHow to Talk to Your Clients About Market Declines (Page 14)?What Happens When You Fail at Market Timing?Understand Market VolatilityJP Morgan's Guide to the Market (June 5th 2022 - Pages: 13, 17, 25, 32, 41, 49, 53)Will the Stock Market Crash in 2022? (Dave Ramsey) Watch Video Times & Topics: 00:00 Are we at the bottom? 02:09 How long do recessions and bear markets last? 03:15 What's the typical one year comeback from the midterm election year pullback? 04:50 What happens when you fail at market timing? 09:09 What are the areas of opportunity, strategies, and solutions you should be considering?