Latest Investments & Planning Insights

Weekly Summary

At the end of the trading week, the team at NewEdge Wealth publishes its commentary on the week that was, as well as some insights into what it means for clients looking ahead.

“Repent”

We continue to interpret recent trading in U.S. equities as pricing in an elevated chance of a recession within the next twelve months. This does not mean that such an outcome is inevitable. We surmise that this view has taken hold of the markets along with the assumption that the Russia-Ukraine war will persist for quite some time.

“I Won’t Back Down”

Our general approach remains the same. Many long-term investors could strive to maintain a diversified portfolio of high quality stocks of companies that have strong balance sheets, somewhat predictable cash flows and an ability to maintain strong profit margins.

“Russians”

Our basic approach remains constant. Many long-term investors could strive to maintain a diversified portfolio of high-quality stocks of companies that have strong balance sheets, somewhat predictable cash flows and an ability to maintain strong profit margins. Additionally, these portfolios could include at least some exposure to commodities. We remain cognizant of the war’s unknown risk and possible further downside to markets at any time.

“The Adults are Talking”

We assume under the current circumstances that backward looking means that the Fed will continue to tighten even if it expects inflationary pressures to diminish in the future. This is because inflation might be expected to slow down at some point. But the Fed will be making policy decisions based on actual data, and not on expected data. We postulate that the Fed’s frontloading of the tightening monetary policy could probably take the form of a 50 bps hike in the federal funds rate at the May meeting. Furthermore, we surmise that an announcement and implementation of the beginning of its balance sheet reduction plan might be followed by another 50 bps hike at the June meeting. Powell made it clear that the Fed must act “expeditiously” – promptly – to rein in inflation due to the increasing likelihood of inflation expectations becoming “unanchored” and “entrenched” at “uncomfortably” high levels. We understand that the timing and the nature of how the Russia-Ukraine war and related sanctions (war) will end is “unknowable.” The many outcome possibilities could range from an agreement to end the war on terms acceptable to Ukraine to horrible possibilities of the use of nuclear weapons, chemical and biological warfare, as well as cyberattacks. A March 24 Blomberg headline best describes one of our greatest concerns: “Putin stirs U.S. concern that he feels cornered and may lash out.” Our approach remains the same as last week. Many long-term investors could strive to maintain a diversified portfolio of high quality stocks of companies with strong balance sheets, somewhat predictable cash flows and an ability to maintain strong profit margins.

“Walk of Life”

Our basic approach remains the same as last week. We remain convinced that a diversified portfolio of high quality stocks and commodities is probably most appropriate for most long-term investors in these uncertain times. Our preferred strategy is to try to anticipate and recognize tradable bottoms in equity markets so that equity purchases might be executed during those times. We remain cognizant of the unknown risks of war and possible further downside to markets at any time. But we will try to take advantage of the very large price movements of securities that are caused by uncertainty and volatility. We contemplate that the 10-year yield high point of 2.24% reached this week might be at least a short-term top for that security. We will reassess our stance on the 10-year yield as we continue to analyze incoming data on economies, inflation and the war, as well as and any other data that we might deem relevant.

Wealth Planning

A successful wealth strategy process benefits from a team of advisors, collectively focused on the goals specific to your family. Below are some of the insights and strategies the team at NewEdge has published on what it means to have a wealth strategy, rather than a simple financial plan.

Creating an Intentional Legacy

You are Actively Creating Your Legacy (Whether you realize it or not) NBA Hall of Famer and current TV analyst Charles Barkley once stated in a commercial, “I ain’t no role model. I’m not paid to be a role model. I’m paid to wreak havoc on the basketball court.”...

|Mar 2, 2022

Estate Planning Your Child Needs Once They Turn 18

You may still consider your 18-year-old a child, but to the world, they are an adult. As your child graduates from high school and heads out into the newfound ventures of adulthood, it’s important to consider the legal implications that arise when they legally become an adult.

|Feb 14, 2022

2022 Wealth Strategy Planning Guide

NewEdge Wealth is a business built upon a foundation of safety, objectivity, differentiated technology, and the in-house intellectual capital capability and customer services experience our clients have come to expect.

To assist clients with the many areas of financial consideration for 2022, we have summarized some key topics to review.

Mar 4, 2022

Webinars and Events

2022 Wealth Strategy Planning Guide

2022 Wealth Strategy Planning Guide

NewEdge Wealth is a business built upon a foundation of safety, objectivity, differentiated technology, and the in-house intellectual capital capability and customer services experience our clients have come to expect.

To assist clients with the many areas of financial consideration for 2022, we have summarized some key topics to review.

read more
2022 Market Outlook with Tom Lee

2022 Market Outlook with Tom Lee

Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors and NewEdge Wealth’s CEO and Co-Founder, Rob Sechan discuss key economic and market themes which will likely impact investors in the coming year.

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Robert J. McCann Joins NewEdge Capital Group as Co-Chairman

Robert J. McCann Joins NewEdge Capital Group as Co-Chairman

NewEdge Capital Group, LLC announced today that Robert J. McCann has joined the firm and will serve as an active Co-Chairman. With four decades of experience, Mr. McCann’s proven track record of executive leadership and delivering organic growth will propel NewEdge Capital Group’s mission of supporting successful advisors in the pursuit of the optimal client experience.

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2021 Year-End Planning Checklist

2021 Year-End Planning Checklist

As we head into the new year, now is the time to take stock and assess whether your wealth strategy utilizes the appropriate strategies to address the current tax law, soaring market returns, and any changes to your goals or family circumstances.

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