Fortis Analytics & Research
Asset Allocation Overview
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Global: We have reduced our equity exposure across the board to just under 40%, choosing to focus on the large-cap areas of the market and dedicated have entered into international and emerging market for just under 15 of the inner-allocation. Bonds and Real Assets have received much of the allocation. Fortis S&P 500 Maximum Drawdown Risk indicator is low, with the likelihood of a draw-down event less than 11.2% Still, we expect 2022 will be a year where at least one +10% correction occurs.
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U.S.: Stocks close the books on a rough January. The tech-heavy NASDAQ is down about 9% for the month, with the S&P 500 making a valiant attempt to advance 1.9% after the low this month, but still ended the month down 5.3% The DJIA also pulled up its loss gaining 1.2%, putting its monthly loss at 3.3%. Our strategies faired well, beginning in January, we reduced equity exposure to 38%, while also increasing our fixed income and commodity positions. Rising inflation, geopolitical turmoil between Russia and Ukraine, as well as our reading of volume and trend indicators prompted the change.
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ESG: Assets overall this year may exceed $41 trillion this year. Regulators and activist shareholders are becoming louder and asking for more market participants. We expect companies worldwide to continue to enhance carbon targets as they come increasingly under pressure to the deadline to reach the 1.5 – degrees Celsius temperature increase limit. Clean-energy funds sit at an important inflection point for expansion. The jump in fees for ESG investments is increasing liquidation risk.
Asset Allocation: Global Recommendations
1/31/2022
U.S. Markets: Stocks close the books on a rough January. The tech-heavy NASDAQ is down about 9% for the month, with the S&P 500 making a valiant attempt to advance 1.9% after the low this month, but still ended the month down 5.3% The DJIA also pulled up its loss gaining 1.2%, putting its monthly loss at 3.3%
Economy: The Q4 GDP report exceeded expectations and remains on track to continue expansion and growth. Labor markets continue to show maximum employment, however need confirmation this week in jobs report. Wage growth is hot. March rate hike is all but guaranteed. Housing Sector is foretasted to continue a good run, despite the likely rise of interest rates.
Market Trends: The average stock in the Russell 1000 is down 9%. The best performing stocks have been ones with low price to book ratios and high dividend yields. Worst performance, down closer to 20% are those companies with the highest valuations the most international revenues and the highest short interest
Asset Allocation: US Recommendations
1/31/2022
U.S. Markets: Stocks close the books on a rough January. The tech-heavy NASDAQ is down about 9% for the month, with the S&P 500 making a valiant attempt to advance 1.9% after the low this month, but still ended the month down 5.3% The DJIA also pulled up its loss gaining 1.2%, putting its monthly loss at 3.3%
Economy: The Q4 GDP report exceeded expectations and remains on track to continue expansion and growth. Labor markets continue to show maximum employment, however need confirmation this week in jobs report. Wage growth is hot. March rate hike is all but guaranteed. Housing Sector is foretasted to continue a good run, despite the likely rise of interest rates.
Market Trends: The average stock in the Russell 1000 is down 9%. The best performing stocks have been ones with low price to book ratios and high dividend yields. Worst performance, down closer to 20% are those companies with the highest valuations the most international revenues and the highest short interest
Asset Allocation: Style & Sector Recommendations
1/31/2022
U.S. Markets: Stocks close the books on a rough January. The tech-heavy NASDAQ is down about 9% for the month, with the S&P 500 making a valiant attempt to advance 1.9% after the low this month, but still ended the month down 5.3% The DJIA also pulled up its loss gaining 1.2%, putting its monthly loss at 3.3%
Economy: The Q4 GDP report exceeded expectations and remains on track to continue expansion and growth. Labor markets continue to show maximum employment, however need confirmation this week in jobs report. Wage growth is hot. March rate hike is all but guaranteed. Housing Sector is foretasted to continue a good run, despite the likely rise of interest rates.
Market Trends: The average stock in the Russell 1000 is down 9%. The best performing stocks have been ones with low price to book ratios and high dividend yields. Worst performance, down closer to 20% are those companies with the highest valuations the most international revenues and the highest short interest