A&I Wealth Management > Blog > Investment Advice > 2023 Q2 Investment Update

We rely on the research of iM Global Partners (iMGP) for our economic and investment outlook. For a more complete commentary, click here to open a PDF file.

iMGP believes a recessionary bear market is the most likely outcome over the next 12-months. But, as they extend the time horizon over the next five to 10 years, we see reason for optimism. Within the U.S. stock market there are companies and sectors that are reasonably priced and offer attractive return potential. The fixed-income landscape is also attractive, thanks to higher yields and inefficiencies that can be exploited by skilled active managers.

iMGP also sees strong total return potential from international and emerging market stock markets, which have been out of favor and underperforming for more than a decade. These markets are not “priced for perfection” as the U.S. market seems to be. Instead they seem more susceptible to “upside surprise” – better-than-expected earnings, growth and valuation expansion. While foreign markets will get hurt in a near-term recession, we don’t want to try to time getting out and getting back in given their attractive five-year return outlook.

Successful investing requires a balance between offense and defense. Earning superior long-term returns does require one to take calculated risks when opportunities present themselves, but to also exercise caution during periods of market exuberance. By maintaining a disciplined and balanced investment approach, we are well-positioned to weather the inevitable market storms and capitalize on the opportunities that are also sure to arise.

Download the Second Quarter 2023 Investment Commentary.

Financial Planning: Four Strategies to Help You Prepare for a Natural Disaster

Natural disasters can happen to anyone. Follow these financial planning strategies in the short term, and you will be ready for long-term success.

Read more at Let’s Make a Plan: https://www.letsmakeaplan.org/financial-topics/articles/emergency-fund/four-strategies-to-help-you-prepare-for-a-natural-disaster

About the author

Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.