However, the yield-to-maturity on the Bloomberg Aggregate Index is now 5. As a result, we would expect a much larger positive contribution to future returns from income and a less negative contribution from price return.

We would suggest that investors reassess their current bond allocation and marginally increase their exposure in a manner consistent with their portfolio's current position, investment objectives and risk tolerance.

While we are not calling the top in near-term rate movements, we do believe we are entering more of a range-bound yield market for longer maturity bonds. This is consistent with our expectations of no additional rate hikes from the Federal Reserve this cycle and a continued decline in near-term inflation.

To efficiently capture the higher yields, we would advise a modest increase in longer-dated maturity bonds as well as an allocation to shorter maturity bonds in a barbell approach, while avoiding intermediate maturity where possible.

Given the inverted shape of the yield curve, a barbell approach can help maximize the overall yield of the portfolio and provide additional return should long-end rates move lower. For non-taxable or investors that are not tax-sensitive, we would prefer the use of higher-quality corporate bonds, as we believe the market has not appropriately priced the risk of a potential recession in lower-quality bonds.

Additionally, the agency mortgage-backed securities market is a high-quality sector for investors to consider. Year to date, this sector has underperformed other investment grade sectors and now offers an attractive risk-return profile.

For those investors in high-income tax brackets, municipal bonds are attractive. Similar to our view on taxable bonds, we would recommend a bias toward higher-quality bonds as a potential recession could negatively impact lower-rated municipalities.

While we currently favor municipal bonds for those high-tax investors, we would not eliminate corporate bonds or other taxable securities from consideration.

Certain market conditions can favor taxable bonds on an after-tax, risk-adjusted basis. It's important that investors select a manager who can take advantage of those opportunities when they arise to create a tax-efficient portfolio. To the extent that interest rates move significantly higher, counter to our expectations, we would view this as an opportunity for investors to lock in even higher yields for longer.

Under such a scenario, we would not expect a repeat of bond market returns. We estimate that interest rates would have to increase by 0. We have little doubt that the heightened level of market volatility will continue into Opportunities present themselves when market volatility increases.

To that end, we recommend an active approach to fixed-income management. Having the flexibility to successfully navigate and benefit during challenging markets allows for better returns. It is a new dawn for bonds and fixed-income investors.

Return expectations are the highest in years and, although markets could remain volatile, now is the appropriate time to reassess your portfolio and consider an increase in your fixed-income allocation. Skip Navigation. CNBC TV. Investing Club.

Key Points. In recent quarters, we have witnessed a dramatic shift higher in interest rates, a move that investors should not fear but embrace.

Bonds are now all the rage. The current real yield on a year Treasury is approaching 2. Fear of investment losses can lead to decision paralysis and the trap of market timing. Moreover, if the market continues to rise, it can become even harder to put that capital to work.

Countless studies have shown the difficulty of accurate market timing. If an investor is willing to accept the risk, research indicates that probabilities strongly favor lump-sum investing as the optimal strategy for investing cash in a long-term portfolio.

DCA strategies call for a lump sum of cash to be divided into predetermined amounts that are then invested at prescribed intervals until the full sum is invested according to your long-term asset allocation targets.

A long-term disciplined approach to investing is a proven, time-honored method to prepare for retirement and other financial goals. Although sticking with a given risk level and avoiding panic selling or market timing during periods of volatility is prudent, market dislocations can at times create opportunities that may warrant minor shifts to your investment policy at the margins.

For example, during a market downturn, international stocks may have sold off more than U. stocks, creating a valuation disparity that could justify adjusting the target allocations between the two sub asset classes without changing your total allocation to equities.

These are the types of opportunities you and your advisors should consider when market volatility or significant disparity in the relative returns occur. Monitoring debt balances and having a plan to tackle them is a pillar of successful long-term financial planning.

Economic downturns are a great time to revisit these plans because interest rate movements typically accompany market volatility. Mortgage rates have risen in the past year; however, rates can change quickly. If the economy softens and rates fall, borrowers may have an attractive opportunity to refinance the debt, particularly with mortgages originated in the past year or so.

A general rule of thumb to refinancing is that interest rate savings should be at least 0. Interest paid on variable rate debt also rose considerably during the past year. The benefit from eliminating debt with variable rates could be even more pronounced if interest rates continue to rise.

Doing so would likely take precedence overpaying down fixed rate debt with lower interest. While the current environment has certainly been challenging, a sound investment strategy with appropriate risk management can provide peace of mind.

Routine monitoring with a disciplined approach can help investors take advantage of opportunities during periods of economic uncertainty and market volatility and remain on track to meet financial goals. Client login Contact us Subscribe. Industries Services Insights Careers Events About us. All industries.

All services. Tax policy changes. Insights Digital Transformation Inflation and recession outlook Inflation Reduction Act tax credits Learn from Leaders Reimagining the future of healthcare systems Risk management strategies for growth and innovation Smart manufacturing Tax Policy Changes.

All insights. Careers Join Our Team Campus Recruits Experienced Professionals. Events Events Webinars. All Upcoming Events and Webinars. Top seven ways to take advantage of the current market environment. June 5, Article 7 min read.

Recent economic uncertainty and market volatility is a reminder to review your investment plan and prepare for unexpected challenges and opportunities.

Another opportunity that you may wish to take advantage of is investing new money. When stores have sales, people generally go shopping 1. Rebalance Your Portfolio · 2. Tax Loss Harvesting · 3. Investing Excess Cash · 4. Refinance your mortgage · 5. Refinance Family Loans Missing

Take advantage of current market conditions - 1. Review asset allocation and consider opportunities for strategic rebalancing. One of the primary drivers of portfolio performance is asset Another opportunity that you may wish to take advantage of is investing new money. When stores have sales, people generally go shopping 1. Rebalance Your Portfolio · 2. Tax Loss Harvesting · 3. Investing Excess Cash · 4. Refinance your mortgage · 5. Refinance Family Loans Missing

Booming markets can be fantastic opportunities for businesses to take advantage of and make huge profits. But how do you know when is the right time to jump in?

And more importantly, what are the best strategies to use when trying to get a piece of the pie? In this article, we will discuss how businesses can not only identify and target booming markets but also how they can capitalize on them in order to maximize their profits and growth.

Read on to learn more about taking advantage of booming markets! A booming market is one in which demand for goods or services is increasing rapidly. This can be due to a number of factors, such as population growth, economic expansion, or a change in consumer preferences.

Businesses can take advantage of booming markets by offering products or services that are in high demand. They can also invest in marketing and advertising to make sure that potential customers are aware of their business and what it has to offer.

Additionally, businesses should make sure that they have the capacity to meet the increased demand from a booming market. When a market is booming, it presents opportunities for businesses to grow and expand their operations.

Here are some of the benefits of taking advantage of a booming market:. Increased demand for goods and services: When a market is booming, there is typically an increase in demand for goods and services.

This provides businesses with the opportunity to increase production and sales, and potentially boost profits. Access to capital: A booming market can also provide access to capital, as investors are often more willing to put money into businesses that are growing rapidly.

This can give businesses the resources they need to expand their operations and hire new staff. Improved brand awareness: A boom can also lead to improved brand awareness as more people are exposed to your product or service.

This can help you attract new customers and grow your business even further. Greater competition : While increased competition can be seen as a downside, it can also push businesses to be more innovative and efficient in order to stay ahead of the curve.

This can ultimately lead to better products and services for consumers. Economic growth: Finally, a booming market usually signals economic growth, which can benefit businesses of all sizes by creating an overall positive climate for business activity.

The answer may vary depending on the business, but here are a few ways businesses can take advantage of booming markets :. By staying ahead of trends and being able to anticipate what customers will want next, businesses can stay one step ahead of the competition and keep their products or services in high demand.

By investing in research and development, businesses can ensure that they are always innovating and offering the latest and greatest to their customers. By keeping overhead costs low, businesses can maximize profits during periods of high demand.

By diversifying their product offerings or services, businesses can insulate themselves from market fluctuations and maintain a steadier stream of revenue. No matter what industry a business is in, there are always opportunities to capitalize on booming markets.

In order to take advantage of booming markets, businesses need to be strategic in their approach. They need to identify which markets are booming and then tailor their products or services to appeal to that market. Additionally, they need to be aware of the potential risks associated with booming markets and take steps to mitigate those risks.

Apple: When the smartphone market began to boom, Apple was quick to capitalise on it with its iPhone product line. The company has since become the largest smartphone manufacturer in the world. Amazon: Amazon also identified the opportunity presented by the growing online shopping market and has become the leading e-commerce platform globally.

Netflix: Another company that has ridden on the wave of a booming market is Netflix. The streaming service saw the potential of the shift from traditional television viewing habits to digital content consumption and has since become one of the most popular streaming platforms in the world.

This will help you better position your products or services to take advantage of opportunities in the market. Keep an eye on trends: Keeping tabs on industry trends will help you identify potential areas for opportunity.

You can do this by reading trade publications, attending industry events , or even following thought leaders on social media. Be agile: In order to take advantage of booming markets, you need to be able to move fast and adapt quickly to change.

This means being willing to experiment and being okay with making mistakes along the way. This should include everything from identifying opportunities to marketing your products or services effectively.

When looking to take advantage of booming markets, there are a few things businesses should avoid. Buying into the market at lower and more attractive entry points allows for greater potential future appreciation and the ability to recover portfolio losses more quickly when out-of-favor investments eventually rebound.

When considering whether to rebalance your portfolio, investors should set reasonable ranges around asset class and sub asset class allocation targets to establish when rebalancing thresholds have been met. An opportunity often overlooked during market downturns is harvesting capital losses in taxable brokerage accounts.

While market declines never feel good, selling investments held at a loss can create considerable tax savings in the current year and potentially in the future as well.

When engaging in tax-loss harvesting, investors must pay close attention to wash-sale rules that prohibit proceeds from being reinvested in the same or substantially identical securities within 30 days.

A failure to do so would negate the ability to claim the loss on your income tax return. As such, we recommend that any positions sold be replaced by a comparable strategy that allows the investor to maintain exposure to the corresponding asset class or style.

Roth IRAs are attractive retirement savings vehicles because of the potential for tax-free growth and income — advantages that can make Roth IRA conversions a worthwhile consideration.

Such conversions are often taxable events but converting traditional IRA assets to Roth IRAs now can be an effective strategy to hedge against the potential for higher tax rates in the future.

Several different strategies should be considered, as well as rules and pitfalls to avoid surrounding these conversions, however, when portfolio values have been reduced due to market conditions, Roth conversions can present a compelling opportunity.

A further market decline is always a risk but converting investments that have fallen in value could provide greater potential for tax-free growth in the future when the market recovers. An important piece of financial planning, particularly during times of volatility, is carefully evaluating the adequacy of your emergency fund and cash reserves.

There is always a chance you could experience a loss of income or incur unexpected expenses. Of course, you may prefer to have a larger cash reserve, particularly given the volatility in the financial markets over the past 18 months. A little extra cash can be comforting and reduce the potential of needing to tap your investment portfolio for cash at an inopportune time.

Now that yields on CDs, savings, and money market accounts have increased, there may be additional opportunities to increase your cash reserves and get a nice return without the risk of loss from market volatility. Fear of investment losses can lead to decision paralysis and the trap of market timing.

Moreover, if the market continues to rise, it can become even harder to put that capital to work. Countless studies have shown the difficulty of accurate market timing.

If an investor is willing to accept the risk, research indicates that probabilities strongly favor lump-sum investing as the optimal strategy for investing cash in a long-term portfolio. DCA strategies call for a lump sum of cash to be divided into predetermined amounts that are then invested at prescribed intervals until the full sum is invested according to your long-term asset allocation targets.

A long-term disciplined approach to investing is a proven, time-honored method to prepare for retirement and other financial goals. Although sticking with a given risk level and avoiding panic selling or market timing during periods of volatility is prudent, market dislocations can at times create opportunities that may warrant minor shifts to your investment policy at the margins.

For example, during a market downturn, international stocks may have sold off more than U. stocks, creating a valuation disparity that could justify adjusting the target allocations between the two sub asset classes without changing your total allocation to equities.

These are the types of opportunities you and your advisors should consider when market volatility or significant disparity in the relative returns occur. Monitoring debt balances and having a plan to tackle them is a pillar of successful long-term financial planning.

Economic downturns are a great time to revisit these plans because interest rate movements typically accompany market volatility. Mortgage rates have risen in the past year; however, rates can change quickly.

If the economy softens and rates fall, borrowers may have an attractive opportunity to refinance the debt, particularly with mortgages originated in the past year or so. A general rule of thumb to refinancing is that interest rate savings should be at least 0.

Interest paid on variable rate debt also rose considerably during the past year. The benefit from eliminating debt with variable rates could be even more pronounced if interest rates continue to rise.

Take advantage of current market conditions - 1. Review asset allocation and consider opportunities for strategic rebalancing. One of the primary drivers of portfolio performance is asset Another opportunity that you may wish to take advantage of is investing new money. When stores have sales, people generally go shopping 1. Rebalance Your Portfolio · 2. Tax Loss Harvesting · 3. Investing Excess Cash · 4. Refinance your mortgage · 5. Refinance Family Loans Missing

stocks, creating a valuation disparity that could justify adjusting the target allocations between the two sub asset classes without changing your total allocation to equities. These are the types of opportunities you and your advisors should consider when market volatility or significant disparity in the relative returns occur.

Monitoring debt balances and having a plan to tackle them is a pillar of successful long-term financial planning.

Economic downturns are a great time to revisit these plans because interest rate movements typically accompany market volatility. Mortgage rates have risen in the past year; however, rates can change quickly.

If the economy softens and rates fall, borrowers may have an attractive opportunity to refinance the debt, particularly with mortgages originated in the past year or so. A general rule of thumb to refinancing is that interest rate savings should be at least 0.

Interest paid on variable rate debt also rose considerably during the past year. The benefit from eliminating debt with variable rates could be even more pronounced if interest rates continue to rise.

Doing so would likely take precedence overpaying down fixed rate debt with lower interest. While the current environment has certainly been challenging, a sound investment strategy with appropriate risk management can provide peace of mind. Routine monitoring with a disciplined approach can help investors take advantage of opportunities during periods of economic uncertainty and market volatility and remain on track to meet financial goals.

Client login Contact us Subscribe. Industries Services Insights Careers Events About us. All industries. All services. Tax policy changes. Insights Digital Transformation Inflation and recession outlook Inflation Reduction Act tax credits Learn from Leaders Reimagining the future of healthcare systems Risk management strategies for growth and innovation Smart manufacturing Tax Policy Changes.

All insights. Careers Join Our Team Campus Recruits Experienced Professionals. Events Events Webinars. All Upcoming Events and Webinars. Top seven ways to take advantage of the current market environment.

June 5, Article 7 min read. Recent economic uncertainty and market volatility is a reminder to review your investment plan and prepare for unexpected challenges and opportunities.

These seven strategies can help you improve portfolio returns and reduce risk while staying focused on your long-term financial goals. Economic uncertainty and market volatility in the current environment are reminders of the importance of establishing a disciplined investment strategy that you can stay committed to in challenging times.

Recessions are a normal part of the economic cycle and periodic market volatility is to be expected. Holistic planning and regular monitoring of plans can help investors find comfort and clarity in periods of stress, as well as opportunity.

Here are seven planning items and strategies to consider in the current environment. Review asset allocation and consider opportunities for strategic rebalancing One of the primary drivers of portfolio performance is asset allocation, and a critical step when building a portfolio is establishing the desired level of risk you want in your portfolio.

Execute tax-loss harvesting transactions An opportunity often overlooked during market downturns is harvesting capital losses in taxable brokerage accounts.

Consider a Roth IRA conversion Roth IRAs are attractive retirement savings vehicles because of the potential for tax-free growth and income — advantages that can make Roth IRA conversions a worthwhile consideration. Read all you can about your industry, your market and the world in general.

Regularly keep up with industry trade publications and websites; national, regional and city newspapers; influential bloggers and business thought leaders. Get involved in your industry. Join industry associations, attend their events, take trainings and participate in online communities.

Associations work hard to keep their members abreast of trends, so take advantage of their expertise. Get to know people in your industry—and outside of it.

Regularly meet and talk with colleagues, partners and clients about trends in their businesses. These conversations are sure to spark ideas. Keep in touch with your customers. Social networking tools like Facebook, LinkedIn and Twitter make it easier than ever to find out what your customers think and want.

Are they staying at home more? Spending less? Cooking more? All you have to do is ask. Monitor your business. Use tools like financial projections and business dashboards to measure business benchmarks and spot trends.

Are supply costs rising or falling? Tracking trends over time helps you predict potential problems—and opportunities. Study statistics. Government agencies compile mountains of statistics that can help you pinpoint trends in demographic groups, regions, industries and more.

The National Bureau of Economic Research, the U. Census Bureau and Fedstats websites are great places to start. Observe your competition. Visit their locations and websites; follow them on Facebook and Twitter.

What new initiatives, products or services are they launching? Are they targeting new markets or expanding to new regions? Get out of the office. Think outside the box.

Get beyond your own industry, market and region to learn what people in unrelated fields are doing. Read news from Japan or New York City.

Visit sites for skateboarders or commodities traders. Think long-term. This entry was posted in Business Tips , News.

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