Select Page

A Bear Masked as a Bull

While the headline indices are strongly positive year-to-date, it’s incredible to think that the vast majority of stocks on the NYSE are mired in a bear market. This has been made possible by the massive concentration of single stock risk in the S&P 500 and Nasdaq that are dominated by a handful of mega-cap trillion-dollar stocks (Facebook, Apple, Microsoft, Netflix, Google, Amazon & Tesla). As more investors pile into those stocks to ride out the storm, the real risk in our opinion is the unwind of the crowded FANG trade, while the opportunity may lie in the carnage of unloved technology stocks.

In this week’s edition of the Market & Portfolio Review, we are going to review the factors that led to a frustrating 2021, where we stand today, and the adjustments we are making to prepare for 2022. We will also review recent trades in the portfolio and what higher interest rates mean for the economy and your portfolio.

Key Takeaways:

  1. It’s been a frustrating year, but 2022 looks more attractive with discounts abound
  2. The Federal Reserve is set to slow growth in order to lower inflation 
  3. Moderating growth may help investors realize the value in beaten-up areas of the market

Robert Reaburn:  Executive Vice President and Head of Wealth Management at LifePro Asset Management.