Actions to consider in 2022
The next phase of the reopening is likely to bring more modest returns and higher volatility, offering opportunities for disciplined investors. We recommend neutral allocations to equities and fixed income, aligned with our strategic (long-term) asset allocation targets of your investment strategy.
We favor economically sensitive international stock asset classes, such as emerging-market stocks and international small- and mid-cap stocks, over large-cap stocks. As interest rates glide higher in the coming months, we believe investors should overweight U.S. investment-grade bonds, which offer higher yields and lower interest rate sensitivity than international bonds.
Our opportunistic (short-term) asset allocation guidance can help you take advantage of opportunities in today’s market without deviating too far from your long-term investment strategy.
Reach out to an Edward Jones financial advisor today if you’d like to discuss your financial strategies in 2022.