What does yesterday’s FOMC meeting mean for investors? Risks remained skewed to the downside. We know inflation is a problem. The Fed wants to hike rates and reduce its balance sheet. It’s hard to see a scenario where markets absorb these crosscurrents without higher levels of volatility.
From my perspective, the cake has been baked. Interest rates are rising. Inflation is a problem. There is a clear rotation from growth to value. Ironically, these trends have prevailed for 12-15 months, and I don’t see them changing anytime soon.
Content continues below advertisement
Astoria remains steadfast that portfolios should be tilting towards value-centric assets. Growth stocks will continue to suffer with higher rates and value stocks still offer a margin of safety. Astoria continues to gravitate toward inflation-sensitive assets. They are cheap, under-owned, and could potentially provide support for portfolios if inflation remains high. Lastly, Astoria recommends being globally diversified and owning alternatives.
Investing is about looking forward, not in the rearview. Unfortunately, many investors fall victim to looking backward when building a portfolio.
Follow @AstoriaAdvisors on Twitter for our market updates and insights.
Click here for original publication
Photo Source: Astoria Portfolio Advisors and Pixabay: Dove | Hawk
newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFTrends.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.