candlestick and line chart of mid-year stock performance

Road not taken

November 2022.
Investor Strategy.

The next few quarters will likely remain volatile in both directions. Fortunately, entry points today in either equities or bonds do offer a compelling 12-month outlook. In a year, inflation will likely have subsided to a degree. If a recession arises in North America, it should be largely played out by that point. There might be better entry points ahead, but one-year return expectations are the best we have seen in many years, given current yields and valuation. Based on this view we remain comfortable with being market-weight equities and bonds. Should either market sell off more, it would be more enticing to go overweight at that time.

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