Prepare to Come Around

In February of 2022 I wrote a blog entitled Prepare to Tack. Readers who sail were quick to correct me that the term is, in fact, ‘Prepare to Come Around’. On that I stand corrected. Nonetheless, the blog discussed my belief that we were entering a period of higher interest rates; headwinds to what had been a robust period of growth in the financial markets. These headwinds turned out to be a gale that tested both our portfolios and our patience.

Long months of volatility no-doubt dull the courage needed to change path, to act boldly. Yet, I believe that it is the time to do just that—to move from a defensive to an offensive posture.

The Wall Street Journal recently reported that money market balances are at an historic high of $5.6 trillion and that between institutional and individual investors, 20% of all portfolios are sitting in cash. Tie this in with the data points I shared in last month’s Finding the Markers and the body of evidence grows that conditions are right for a change.

We’ve had a market where there was nowhere to hide. Fortunately, first light reveals all souls accounted for, breaks in the clouds and improving conditions ahead. I believe strongly now is the time, we need to Come Around.

Any opinions are those of Nathan Clakley and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

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