Time to Read: 3 minutes

Mixed signals from some of our key indicators have caused us to remain underweight equities after cutting exposure from an overweight position last year. We will continue to focus on these key indicators to help determine what’s next for the markets. Here are our key takeaways from Brown Wealth Management’s October Update Webinar:

  • Bonds continue to outperform stocks on a rolling 12 month basis.
  • Global slowdown continues without much improvement.
  • US economy showing some signs of weakness, while other areas remain strong, likely caused by continued trade war spillover
  • Trade war weighing on sentiment and parts of the economy (Manufacturing)
  • US stock market earnings and relative strength are fading.
  • The Fed and other Central banks are providing stimulus to the global economy through lower rates, with more expected to come.
  • Some key indicators such as momentum and sentiment are bullish, while more fundamental indicators have yet to show improvement.
  • BWM is still taking a “wait and see” approach and a conservative allocation

Now is a good time to review risk tolerance, large holdings of employer stock, and account allocations for investments outside of Brown Wealth Management.  We will continue to monitor our objective indicators for signs that it is time for a shift in investment strategy.