Quad Transition
Since emerging from the depths of the lockdown and market selloff in the Spring of 2020, we have been in a reflationary environment (Quad 2) with rising inflation and strong economic growth. Equity markets have performed quite well during this period, and risk assets have been in favor. This past week, market and economic data began to signal that we are transitioning out of the reflationary environment and into a period of stagflation (Quad 3), with slowing economic growth and high inflation. With the changing regime, we are going to migrate portfolios towards equity sectors and asset classes that tend to do well during this phase of the market cycle and exit positions that have historically under performed.
Vista Quad Transition:
Add
- US Utilities
- US Industrial REITs
- Gold
- Mid Cap Growth
Remove / Reduce
- US Financials
- US Materials
- Copper
- Small Cap Growth
We will follow-up with additional information and commentary as we continue to make trades and reposition portfolios.
Lincoln Sorensen, Family Wealth Advisor & Co-Founder