08/14/2018
S&P500 Q2 earnings season is wrapping up, and by most accounts, was a great season!
As of 8/13/18, we saw year-over-year earnings growth of almost 25% (nearly 4% above analyst expectations) with forward four quarter estimates rising 0.6%.
We continue to expect interest rates to rise while the US economy shows strength, which will create a headwind for risk-averse investors. Conservative investors are wondering if they should stick with their rate sensitive bond portfolios or increase risk and exposure to equities while the economy is doing well - a potentially risky proposition.
We have a different idea! There are products that are linked to the performance of stocks, but traditionally have less risk than bonds. In other words, if the economy/stock market continues to do well, so too will your investment. If a recession surprises the market, your investment will be sheltered from those loses. In the environment we are in today, this strategy makes really good sense to many investors.
If you would like to learn if this type of investment makes sense for your portfolio, please reach out to us at [email protected] or 310-773-5946 for a free consultation. We look forward to speaking with you!
