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Tip Toeing Through September

Over the next couple of weeks, we expect economic growth to cool further and the Federal Reserve to increase interest rates by another 75 bps. In the short term, this increases the risk that volatility may increase and that stock prices may reset before resuming an upward trajectory. As a result, we have used the summer strength to increase hedges and decrease our exposure to the market over the short term.

In this week’s update, we will review what those hedges look like and what it means for net long exposures in the present. We also want to review some of the longer-term stock and sector trends that are beginning to score well underneath the surface of a volatile market that we think are candidates to lead the next bull market.

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