SUMMARY. Our core assumption for our 7 model portfolios continues to be for 2022 to see slower overall economic growth. THE CONCENSUS thinking up until this week was strong growth to continue thru 2022. In our prior note we raised concerns over growth tied to waning stimulus, inflation & interest rates as well as concern over higher taxes. We believe the combination of weaker economic data over the past weeks, Federal Reserve worries on inflation combined to ignite concerns over growth and a correction in value stocks as well as shift back to growth stocks. Given our expectations of slowing growth as we move into 2022 this may continue thru the rest of the year.
INVESTMENT IMPACT. After having redeployed cash bringing levels more in line with models prior week we raised cash levels somewhat by elimination our exposure in big pharma stocks which have risen over the past several weeks. We added hedges which may shield against further market drops as well. Our overweight in utilities & health care continues to add a layer of capital preservation and limit exposure to the economy while maintaining positions in select growth stocks.
Our model portfolio performance has been updated on our website as of 4/30/21.
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.