Watching For Signs Of Slower Growth

Summary

  • The stock market has performed reasonably well in the year following an initial interest-rate hike.
  • Investors still need to be focused on signs of slower growth.
  • The housing market is the first segment of the economy to feel the weight of tighter monetary policy conditions.
  • I will be looking for ripple effects as the year wears on, but stocks should still outperform bonds in 2022.
  • This idea was discussed in more depth with members of my private investing community, The Portfolio Architect. Learn More »

Rising mortgage rate graph on a blackboard lying on a wooden table

AlbertPego/iStock via Getty Images

After a very strong rebound for the major market averages over the past week, investors needed an excuse to take profits. They found it yesterday with the $5 pop in crude oil prices to $115 a barrel, as President Biden and

market averages - Dow, Nasdaq and S&P 500

finviz.com

first rate hike performance

bloomberg.com

10 year yield

StockCharts.com

mortgage rates

bloomberg.com

VIX index trend

StockCharts.com

Lots of services offer investment ideas, but few offer a comprehensive top-down investment strategy that helps you tactically shift your asset allocation between offense and defense. That is how The Portfolio Architect compliments other services that focus on the bottom-ups security analysis of REITs, CEFs, ETFs, dividend-paying stocks and other securities.  

This article was written by

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Lawrence is the publisher of The Portfolio Architect. He has more than 25 years of experience managing portfolios for individual investors. He began his career as a Financial Consultant in 1993 with Merrill Lynch and worked in the same capacity for several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He graduated from the University of North Carolina at Chapel Hill with a B.A. in Political Science in 1992.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Lawrence Fuller is the Managing Director of Fuller Asset Management, a Registered Investment Adviser. This post is for informational purposes only. There are risks involved with investing including loss of principal. Lawrence Fuller makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by him or Fuller Asset Management. There is no guarantee that the goals of the strategies discussed by will be met. Information or opinions expressed may change without notice, and should not be considered recommendations to buy or sell any particular security.

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