Now that winter is almost completely in our rear-view mirror, it’s time for flowers to bloom and for baseball’s Opening Day. Oh, and Uncle Sam’s favorite day of the year is coming up, too. So before all of you throw open the windows at home and begin your spring cleaning, take five minutes to look at our latest 401(k) allocations and update your accounts accordingly. (Come on- it’s only five minutes. We know you can do it..)
Summary, Last Qtr: For most of Q1, life was good in the markets. The dreaded Sequester did not destroy the markets as the fear mongering national media had suggested it might, and economic statistics such as the unemployment rate and construction starts continued to improve. As a result, we saw equity values go up and consumer fear go down.
New Recommendations: Our indicators are allowing us to remove our overweight in fixed income for the Conservative allocation for the first time in several quarters. We still expect to see volatility at a higher level than historical averages and there is still potential for a pull back, but key fundamentals such as employment and consumer confidence suggest to us that the economic headwinds are beginning to subside.
Our Investment Committee will continue to monitor the global markets, and we will provide our recommendations at the beginning of each quarter. As you get closer and closer to retirement, it is as important as ever to make the effort to protect what you have worked so hard to save! And to help you do that, we will continue to pass along our insights and the Quarterly Allocations any time we make changes in the future.
We will check back with you again this summer!
-The Retirement Network team
International Investing: International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods. Past performance cannot guarantee future results.
Bond Disclosure: Fixed income securities carry interest rate risk. Fixed income securities also carry inflation risk and credit and default risks. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Forward-Looking Statements: Certain statements contained within are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.