Updated: Nov 2, 2021
SUMMARY. Over the past 2 weeks worries have persisted on inflation, but have grown over what growth will be going forward. The Atlanta Fed as an illustration, has significantly reduce GDP growth for 3Q, in our view, tied to sustained inflation, covid-19 and anti growth policies as well as growing political discord. This may mark a shift in the type of assets being owned as we transition to a slower growth environment.
INVESTMENT IMPACT. The design of our model portfolios is based on selecting those companies that may exhibit above trend growth and less dependent on a slower growth economy. Over the last 2 weeks we have deployed our cash reserves across our model portfolios mainly in small/micro cap companies in our growth models and higher dividend paying companies that have fallen in recognition of slowing growth in our income models. Further recognition by markets that inflation has peaked (but not gone) and slower sustain growth is upon us, may continue to shift assets to those stocks that can grow through that slower growth which our models contain. Thus, our overweight in emerging health care companies.
Our model portfolio performance has been updated on our website as of 7/30/21.
For more insights see our website and disclosures found there at BCA. The thoughts contained in this newsletters are intended lend insights into BCAs current & future thinking on changes to BCA model portfolios. They are not intended to be recommendations and should not be taken as such. As always contact us for further explanation of how these events can affect your finances. To unsubscribe from our newsletters & website please email us with "unsubscribe" in the subject.