The U.S. economy faces growing risks, from a surging Federal deficit to geopolitical uncertainty. Investors must assess how these factors could ignite market instability and take proactive steps to safeguard their portfolios.

As the Fed shifts its stance, investors must now weigh the broader economic implications.

The main focus for investors should is no longer if the Fed will cut rates in 2024, but how much and how quickly the Fed will lower interest rates.

Presidential elections tend to have limited impact on market performance, regardless of party win (although markets prefer Democratic switches). Investors should capitalize on the uptick in market volatility, which investors can use for strategic investing.

The S&P 500 is up nearly 80% since March 23, 2020 (COVID bottom). The economic recovery is in full swing, and between stimulus checks, warm weather, and widespread vaccinations recovery momentum is likely to surge this summer, although downside volatility is intensifying.

Our 2021 market outlook theme is “restart”, and with a restart comes optimism and the chance to begin anew. There will be volatility and bumps along the way, but for those that are disciplined and able to look past them, we see more opportunities ahead for upside than downside.