Kent Patrick: Investor Sentiment is Shifting
Monday, May 24th, 2021
This year, markets have experienced an odd phenomenon.
A recent survey shows that 63% of investors are more interested in protecting their financial assets and planning for uncertainty in the future than anything else.
There are many reasons for this change, but here are a few of the most impactful to keep in mind.
Market Rally. This year, markets have experienced an odd phenomenon, to say the least. Historically, if one sector lags, other sectors often come along that can buoy a portfolio. But recently, the broader market has been trending higher, which appears to benefit a variety of investing styles. This may create further uncertainty moving forward, causing investors to be more cautious than usual.
What will the Fed do? As the economy continues to improve, some believe it’s only a matter of time before the Fed changes its monetary stance. Investors of course want strong growth but at the same time, they don’t want the Fed to raise interest rates if inflation increases for a sustained period of time. As always, it's impossible to predict exactly what will happen but many believe it will be difficult for the Fed to maintain its current strategy.
Stay the course. Your portfolio was built to reflect your goals, time horizon and risk tolerance. Periods of market uncertainty are expected from time to time but that uncertainty should not drive a "knee-jerk" reaction with your investments.
As always, if you have any questions about recent market behavior or just want to chat about your portfolio, we’re here for you.
This information should not be construed by any client or prospective client as the rendering of personalized investment advice. All investments and investment strategies have the potential for profit or loss, and there can be no assurance that the future performance of any specific investment or investment strategy including those discussed in this material will be profitable or equal any historical performance levels. Investment strategies such as asset allocation, diversification, or rebalancing do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Any target referenced is not a prediction or projection of actual investment results and there can be no assurance that any target will be achieved.
Kent Patrick is with Bush Wealth Management.


