As you know, we have been discussing the potential for economic softness since the beginning of the year. Recently, we’ve reviewed many individual metrics that are beginning to show a correlation that reflects the weakness that we anticipated, and I believe this affirms the decisions that we made months ago to significantly reallocate our model portfolios.
Now, you’re beginning to hear the main stream mass media talking about inflation that can no longer be ignored, including rising prices for gasoline, and materials. We are also hearing commentaries about how the actions of the Federal Reserve and the Biden Administration could be catalyzing this change of economic direction.
Today, I wanted to pass along the commentary of Jeffrey Klientop, Senior Vice President and Chief Global Strategist for Charles Schwab, that you’ll find attached to this email. This is not a political referendum. This is an observation of trends and quantifiable data. As we’ve discussed, this is no time for an “auto pilot” approach to the investment strategies designed for the achievement of long term goals. I wanted to pass this along for your consideration. Please know that we’re keenly aware of economic forces that are changing on a daily basis, and we’ll continue to keep you abreast of how these conditions could impact our investment strategies.
