Current Market Environment

Posted: Feb 1, 2021 11:36:31 AM

With the recent volatility in the markets, Granite Group Advisors thought it would be prudent to share our thoughts on what is happening, and what you can do. While many of you may be interested in discussing the crazy happening in GameStop and Bitcoin etc.. we will focus on what we see going forward.

It is no secret that the equity markets are trading at records with lofty valuations. However, with the Federal Reserve continuing to provide liquidity, a new stimulus bill, keeping interest rates low, and other general government support, a case can be made that there will not be a 20% or greater market correction. Equity markets could experience a pullback of 10% or less which historically has been a part of norm.  

We believe once the country gets through covid and the economy opens back up to travel, vacation and other restrictions lifted, people will have a lot of savings to spend. This is why GGA is optimistic on the equity markets for this year.

If the markets pullback, we would view it as an opportunity to buy. The question is where should you allocate? We would focus on the value sectors, emerging markets, mid growth and to a lesser extent, Europe. If you are in the models, you will already have exposure to these sectors. Employees have the option to buy models or create your own allocation.

There are always additional external events that can cause ripples in markets. But this is what we see as of today. Please call your advisor or us on your personal situation. If you are retiring, want more clarification or just want to talk, please do not hesitate to give us a call. 203 -210-7814

Thanks for your time and attention and we hope you all stay safe healthy and prosperous!!!

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