Hope you're enjoying a wonderful summer! As we proceed through the third quarter, we want to provide you with valuable insights into the current economic & market landscape and discuss our strategic approach to managing your portfolios. If you have any questions or concerns about your unique financial situation, please don't hesitate to reach out.
Inflation: The Personal Consumption Expenditures (PCE) Price Index, an alternative inflation measure to the more traditional PCI Index, continued to moderate down to 3.0% at the end of Q2. It was also the lowest reading since March of 2021. Core PCE (excluding Food and Energy) fell to 4.1% at the end of Q2 from 4.6% at the end of Q1.
Portfolio Adjustments: In response to potential changes in market trends, we are recalibrating stock and bond bets. Our stock/bond split is moving back to neutral, pruning active risk, and tweaking style, factor, and regional bets. We're adjusting our U.S. stock allocation by trimming tech in favor of a wider growth exposure and adding some mid-cap exposure. We're also looking to balance the U.S. growth bias with a value tilt in International markets while reducing emerging market exposure, resulting in a more neutral overall growth-to-value weighting within the portfolio. As for bonds, we are utilizing a barbell approach with a mix of short-term and longer-term bonds, adding short-term bonds & TIPs while reducing credit.
The Certus Wealth Management journey is designed to help our clients achieve financial success. Know someone who might be interested?
Financial Advice is offered through Certus Wealth Management LLC, a Registered Investment Adviser.
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This material prepared by Certus Wealth Management, LLC (âCertus Wealthâ) is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Certus Wealth are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Certus Wealth, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Certus Wealth does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.
Certus Wealth Management, 1025 Alameda de las Pulgas, Ste. 102, Belmont, CA 94002, (650) 232-2023