Issue link: https://nebusinessmedia.uberflip.com/i/1320415
www.wbjournal.com • Worcester Business Journal • 2021 Economic Forecast 35 Christopher P. Provo RFC, CRPC President & CEO Pedro M. Silva CRPC, CDFA Investment Executive Joseph E. Bakaysa Investment Executive Karen G. Shapiro Financial Advisor, Director, Sustainable Investing CASH - In our opinion, the statement "Cash Is King" is done! Unless you like earning nothing for the next several years. - Consider only using cash where suitable, like protecting money for short terms spending or emergency funds. Taking profits and banking them for weeks or months is fine but look for other opportunities. Even consider Gold. Please note that cash alternatives do still carry various risks, such as market or credit risk, and may lose value. BONDS - Interest rates should remain fairly flat for years. We like corporate credit risk debt and municipal securities. - Consider fixed income or corporate bonds. The Fed is very supportive, and any volatility will most likely be short term. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values vary and will decline as interest rates rise. Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. High yield/junk bonds – grade BB or below – are not investment grade securities and have higher risks than those graded BBB and above. U.S. STOCKS - Valuations are a little expensive, but it does not mean that stocks can't continue to climb. In December of 1996, former Federal Reserve Chairman, Alan Greenspan, made his infamous comment about "irrational exuberance", and yet markets rose the next three years. - Consider maintaining a strong overweight to U.S. equities. - Overweight Growth over Value in our opinion. Fight the rotational urge. - Consider overweighting Large over Small. Feel ee to avoid sectors like Energy. As with all investing, stocks investing has risk including loss of principal, and the prices of small cap stocks are generally more volatile than large cap stocks. INTERNATIONAL STOCKS - We are neutral. - Slight underweight in international stocks, with emerging markets having greatest growth opportunity with a weaker dollar. When investing internationally, it's important to remember there are special risks such as currency fluctuation and political instability, which may not be suitable for all investors. These risks are oen heightened for investments markets. LAST THOUGHTS - Leading economic indicators continue to improve, but the pace is moderating. Earnings estimates continue to trend higher aer bottoming in May. If you would like to review your portfolio with a member of our team, please contact us at 508-842-0539. Curious about your risk score? Visit our website at www.ProvoWealth.com and utilize our ee Riskalyze analysis tool. We strive to instill confidence that you are on the right path and in alignment with your values. While our analysis and opinion are accurate up to the time of publishing, situations can change. The opinions stated above are not necessarily appropriate for every person and every portfolio. Factors such as age, risk tolerance, and socially responsible or sustainable investing may also be relevant. 385 South Street, Shrewsbury, MA 01545 | T: (508) 842-0539 | F: (508) 842-0571 | www.ProvoWealth.com ECONOMIC FORECAST FOR INVESTING Factors and Moves to Consider: Roadmap to Investing in 2021