We wrote close the bottom of the COVID market panic (April 9) with Three Good Ideas for Investors. The first was to change your 401(k) contributions to 100% US Stock. The S&P 500 Index® is up 40% since then.
Today, our crystal ball is as clear as ever. We see the percentage of vaccinated Americans increasing daily, that $4 Trillion dollars was saved in the last year, and everyone is poised to resume leisure travel, dining out, shopping and handle a list of postponed activities and purchases.
So, take another look at your 401(k). This is usually your longest time-horizon investment. We see opportunity in smaller companies because of relative value and potentially greater growth in an economic recovery. We’re also increasing our international exposure, also for relative value combined with higher dividend yields. For those of you with a broad fund lineup, we are adding some focus on materials, industrials and financials, that should all recover as America goes back to work.
Most clients tell us that they rarely look at their 401(k) or 403(b) plan choices once they establish the account. If your company plan is with Fidelity and offers their BrokerageLink® self-directed option, we may be able to manage that account for you. In any case, we’re happy to answer questions.
Read more Insights from Sidney and Keith at Integras Partners!