Weekly Investment Strategy

Review the latest Weekly Headings by CIO Larry Adam.

Key Takeaways

  • Pullbacks are part of the fabric of the market
  • Investors should avoid trying to time the market
  • The fundamentals reaffirm our positive equity market outlook

It has not been a seamless start to the year for the equity market. The S&P 500 has experienced an average intra-day move year-to-date of nearly 2%—the highest swings since 2009 and higher than the pandemic-induced 2020 volatility—and is on pace for its worst month since March 2020. While there are many catalysts contributing to the weakness, the Fed trying to ‘thread the needle’ to avoid a monetary policy error has been at the forefront of investors’ minds. But while it feels like this bull market is about to ‘burst at the seams,’ remember that pullbacks are part of the market’s tapestry. As we put this recent selloff into perspective, we will focus on the investment principles that have stood the test of time and discourage emotionally-driven decisions.