Weekly Investment Strategy

Review the latest Weekly Headings by CIO Larry Adam.

Key Takeaways

  • Short-term volatility may cause emotions to ‘burst’
  • ‘Pressure’ rising for certain sectors due to ‘K’ recovery
  • Bonds are an important part of the investment ‘landscape’

Today marks 150 years since the discovery of Old Faithful Geyser, one of the most renowned features of Yellowstone National Park. It may not be the largest geyser in the park, but it was the first to be named due to its consistent, predictable eruptions. Many eruptions have occurred since its discovery, and the geothermal events occur frequently throughout the day! The start of this year was calm with the economic expansion reaching a record duration, unemployment at record lows, and earnings growth set to reach all-time highs. However, a ‘Black Swan’ event—COVID-19—erupted, driving market and economic volatility to unprecedented levels. These occurrences reaffirmed that disciplined asset allocation would serve as the ‘Old Faithful’ investment approach, and with the possibility of increased volatility due to the election or a second wave of the virus we revisit why this strategy is tried and true.