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Integrated Insights -- Week of July 13, 2020

Integrated Insights -- Week of July 13, 2020

July 13, 2020

With investment markets continuing their upward charge, many have asked about what seems to them as a disconnect between "the stock market" and the economy. What may surprise many is that nearly all of the growth in US large cap stocks since 2017 can be attributed to five technology companies--that's the distortion of following, and even trying to meet the returns of an index. This is the reason we advocate fora goals-based approach to your investments--the only measure for the success of your investments and your plan.

Here's what we're reading this week:

Weekly Commentary -- Why we like credit -- BlackRock

  • BlackRock are favoring credit on a strategic basis as valuations compensate for default risks, and prefer credit over equities on a tactical basis.

  • They are tracking the interplay of containment measures and mobility changes on activity as economies have started to reopen.

  • Markets this week will focus on a key European Union summit as leaders debate the region’s economic recovery package.

Positioning Portfolios for Recovery -- Capital Group

High level focus on where Capital Group sees 2020 mid-year:

It’s Tax Day—In July?! -- Cetera Investment Management 

Cetera Investment Management provides a salient reminder of the constant interplay between taxes & financial planning. While the entire commentary is a good reminder of why "tax season never ends", the graph below also shows low tax environment we are in as compared to history.  Given current debt levels & stimulus, this may need to change.