| Harbor Wealth
MARKET UPDATE
Simple. Clear. Focused.
|
WHAT'S GOING ON IN THE MARKET?
There's still a lot of scary news — but underneath it all, the U.S. economy remains resilient.
| Headwinds
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Wars
•
Oil prices
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Inflation
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Interest rates
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Underlying Strengths
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Companies still making money
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People still working
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Businesses still spending
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AI driving new growth
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WHAT WE'RE DOING IN PORTFOLIOS
Stocks
We are focused mostly on:
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Bigger U.S. companies
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Strong businesses with lots of cash
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Continue holding companies leading in AI and technology
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Still have a healthy diversification outside of those names in AI and Technology
Examples:
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Apple
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Microsoft
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Nvidia
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Amazon
We are using LESS of:
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Small companies
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Mid-sized companies
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International stocks
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Emerging markets
| Right now, the biggest and strongest companies are still leading the market because they have the
money, scale, and technology to keep growing even during uncertain times. Many of these companies
are also leading the AI boom, which continues to drive earnings and investor demand.
Smaller companies, international stocks, and emerging markets may eventually have their time, but
today they carry more risk and less certainty given higher interest rates, global energy concerns,
and weaker overseas economic conditions. For now, we believe staying focused on stronger, more
established businesses gives clients a better balance of opportunity and stability.
|
Bonds
For bonds, we are staying:
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Higher quality
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Shorter-term
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More conservative
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US-Centric
That means:
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Less risk if interest rates move higher
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More stability
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Better cash flow
RISK MANAGEMENT
We still believe:
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Staying invested matters
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Emotional reactions hurt long-term returns
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Diversification still matters
BOTTOM LINE
| Our Focus
✦
Own strong companies
✦
Keep bond risk controlled
✦
Stay disciplined
✦
Ignore short-term noise
✦
Invest for the long term
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