Economic and Investment Update for 2016

Contributed by: Angela Palacios, CFP® Angela Palacios

In early February, Melissa Joy, CFP®, Partner and Director of Wealth Management at The Center, was joined by David Lebowitz, Vice President and Global Market Strategist for J.P. Morgan, to discuss timely economic and market updates.

David kicked off the presentation by answering 3 questions:

  1. Where are we in the (current economic) cycle?
  2. What should we watch out for?
  3. Where are the opportunities?

J.P. Morgan built a strong case for the U.S. Economy sitting at positive GDP growth (Gross Domestic Product), the improving job market, as well as, corporate profits, and subdued inflation for the foreseeable future.

David also pointed out items to watch out for, such as low oil having a positive effect on consumer’s wallets, the continued higher volatility we are currently experiencing is more in line with history rather than the low volatility environment we have become accustomed to, and being careful of investment biases sneaking into your portfolio causing undue risk.

Opportunities are still out there for investment growth but David stressed that the ride is as important as the destination. A balanced portfolio is like a sword and a shield for investors. Your sword, or equities, has the potential to give you the long term growth needed to help reach goals but your shield, or fixed income can help give you the defense to make your investment journey more comfortable.

Melissa continued with several history lessons stressing the importance of patience and that it often pays off when investing. She discussed top headlines in the news such as the elections and interest rate hikes and how these items will affect investors over the coming year.

Below is a link to the presentation slides referenced throughout that emphasize the key points Melissa and David discussed. As well, there is the recording of the webinar that Melissa and David held, that has further information and discussion.

Angela Palacios, CFP® is the Portfolio Manager at Center for Financial Planning, Inc. Angela specializes in Investment and Macro economic research. She is a frequent contributor to Money Centered as well as investment updates at The Center.


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