Attention BP Employees,
Capstone Wealth Advisors is pleased to announce the release of our Q2/2021 401(k) Model Allocations. In this quarter’s update we are maintaining a “Cautiously Optimistic” outlook for equity markets and a pessimistic or bearish outlook for bond markets. With COVID restrictions continuing to relax and the massive level of financial stimulus added to the US economy through the American Recovery Act of 2021, we believe it is likely equity markets will continue to strengthen. At the same time, we caution investors to understand that not all sectors of equity markets will respond in the same manner. As we have seen over the past year, specific sectors in equity markets have shown significant outperformance when compared to other sectors. We believe this fragmented strength will likely continue in 2021 as the world continues to respond to the global pandemic.
Investment grade bonds are of particular concern to us at the present time. We believe interest rates are poised to continue their climb in line with the US economy, strengthening from their historically low levels seen over the past year. When interest rates rise the prices of bonds fall, especially for bonds with a longer time to maturity.
For our clients, your investment portfolios already reflect our investment philosophy. As market conditions change, we proactively implement portfolio adjustments as part of our investment process.
Please keep in mind that we do not make changes to your BP 401(k), that is something you will need to do. If you would like assistance with updating your 401(k), please do not hesitate to contact us and we can walk you through the steps. Updating your 401(k)’s asset allocation is easy to do and can be done in just a few minutes.
To better understand which of our models is right for you, please follow the link below to a short survey that will help you determine what your risk tolerance is.
For those of you who are not currently a client, we offer complimentary consultations where we discuss your specific situation including your BP benefit options and retirement planning. Email us at firstname.lastname@example.org or contact our office directly at (877)739-6007 to schedule.
Tyler E Ryan
Capstone Wealth Advisors
Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Stock investing involves risk, including loss of principal. International & Emerging Markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in Emerging Markets.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
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Capstone Wealth Advisors and its representatives are separate and apart from any other named entity.