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.

“The Times They Are A-Changin'”

For the time being we are maintaining our basic investment approach as expressed in last week’s commentary. We continue to prefer high quality big cap stocks that offer good balance sheets, as well as relatively stable cash flows and profit margins. We prefer a very diversified global portfolio for long term investors.
We believe that the Fed indicated a much more dovish stance this week in regard to their restrictive monetary policies. We still expect the Fed to hike the federal funds rate by another 25 bps at its next meeting. We will then decide if we believe another hike would be appropriate after that time. We remain data dependent. At this time, we do not expect the Fed to cut rates this year. We are also becoming more convinced that if the U.S. were to enter a recession this year, it would be a mild one. We still believe that the U.S. might avoid a recession this year.

“Bad Habits”

Our general investment approach remains the same as depicted in last week’s commentary. We maintain our preference for big cap quality stocks with good balance sheets, relatively stable cash flows and stable margins. Volatility across sectors continues to be supportive of a well-diversified global portfolio for long term investors. We will continue to closely monitor China’s “reopening,” which we expect to have many “fits and starts.” Continued U.S. Dollar (USD) weakness, along with China’s “reopening” could provide a “tailwind” for the materials sector, and base metals in particular, such as copper. This combination should be beneficial for most commodities. Chinese leadership appears to be now more committed to growing China’s economy.

“We’re Good”

Since our November 18 commentary, we have been anticipating the focus of financial markets to vacillate between inflation and interest rate concerns on the one hand, and escalating concerns over the extent of economic slowdowns and the effects that a slowdown will have on margins and earnings. This week’s trading in U.S. securities showcased how quickly that this focus could shift. We continue to recommend that long term investors should try to take advantage of this volatility to better position their portfolios.

“Something Just Like This”

As the Fed’s “quantitative tightening” (QT – contraction of the Fed’s balance sheet) progresses on a pre-determined course, we expect liquidity to contract in financial markets, including in U.S. Treasuries. We have been highlighting this for quite some time.

“Try Everything”

We maintain our preference for big cap quality stocks with good balance sheets, relatively stable cash flows and stable margins. Volatility across sectors continues to be supportive of a diversified portfolio for long term investors. We continue to assume that the Fed will not cut the federal funds rate in 2023 unless there are very dramatic changes.

Wealth Strategy

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.

2022 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 methods to address the current tax law, volatile market, inflationary pressures, and any changes to your goals or family circumstances.

|Dec 1, 2022

Vacation Home

Considerations Before Buying a Home Overseas

Overseas property ownership has grown in popularity as the world becomes more globally focused and pent-up demand for travel continues to grow. Purchasing a home abroad can be extremely exciting; however, it is important to consider that the process, laws and norms can vary greatly by both country and municipality.

Sep 6, 2022

Planning During a Divorce

Beyond the emotional complexities, high-net worth divorce comes with its own unique set of challenges. Your NewEdge Wealth team is here to help you work through this major life change by partnering closely with your divorce attorney and assembled team of advisors to help guide you every step of the way.

Aug 31, 2022

Articles, Webinars & Media Appearances

Fearless Women: Women Who Board

Fearless Women: Women Who Board

Today, women hold almost 31% of all S&P board seats (up from just 22% in 2017.) We applaud this achievement and look forward to what the future holds for female directorships.

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A Dose of Dispassion

A Dose of Dispassion

This is not about catching the ultimate low or ringing the bell at the bottom. Instead, it is about being disciplined about long-term potential when the near-term is highly uncertain. A dose of dispassion is helpful in times like these.

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