The outlook is strong for asset allocation portfolios heading into the second half of 2023.  From a broad diversification perspective, markets are providing good reasons for optimism across the key asset class spectrum.  Of course, the outlook is not without risks that must also be considered. Stocks. The trend for stocks as measured by the S&P 500 is definitively to the …

It has arguably been the most anticipated and predicted economic recession in U.S. history.  It has many of the classic trappings leading up to the event including aggressively tightening central bank, inverted yield curve, contracting manufacturing activity, declining leading economic index, and tightening bank lending standards just to name a few.  The only twist is that the actual recession that …

Summary The bond market is regaining its footing as inflationary pressures continue to wane, with investors showing confidence in improving conditions for the asset class. Favoring U.S. Treasuries over investment-grade corporate bonds and mortgage-backed securities is recommended for the second half of 2023 due to the current market environment. The yield premium for owning corporates remains thin relative to history, …