Newsletter Q1 2022
Shorepoint’s advice in the face of all these points is to keep your expectations for making money in 2022 modest. The market’s reaction to the dour news has been decidedly muted but the probability of a recession has increased. We are treating rallies thus far as bear market rallies. We have decreased our core bond exposure given the rising rate and inflation environment. In turn, we have added to income-producing assets that are more resilient to interest-rate risk, such as floating rate bond funds, short-term inflation-protected bond funds, and cash. In addition, we have been adding to stocks on weakness as we find pockets of value in stocks of great companies that are attractively valued in the broader market. Some areas that look especially attractive are in healthcare, communications, industrials, and finance.