Market Strategy Report

Divergent

We are looking longer term and holding investments associated with infrastructure, housing and fintech (banking done via your smart phone).

Trend

News out of Washington, over the next several weeks will determine the markets’ trend / trajectory…1) debt ceiling was crossed in July 2021 with gov’t default possible by mid-October, the infrastructure bills and a gov’t shut-down set for Oct 1. Washington usually solves these problems at the 11 o’clock hour.

Fundamental

Continuing to hold elevated cash levels while waiting on action out of Washington.

Tactical

Has been very stable as the market turbulence increases.

Bonds

Fed meets tomorrow and Wednesday.  Then again on Nov. 2-3 and Dec. 14-15.   A reduction or tapering of the Fed’s $120 billion monthly bond purchases could be announced on Wednesday but the actual reduction start date may not be until December 2021.  All else being equal…interest rates will rise modestly as the Fed tapers.  

The primary purpose of this communication is to provide clients with a broad level perspective of each of the firms’ allocation strategies. How each of these strategies will act in the future is a complete unknown and cannot be assumed or guaranteed since future market activity is unknown.

As with any investment, past performance cannot assure any level of future results. There can be no guarantee that the performance and max drawdown being illustrated will act in a similar fashion in the future.

* Performance figure is provided by Black Diamond Wealth Management performance software provided to Family Dynasty Advisors LLC.

 

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