Allocation & Performance Updates

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July, 2022

• Our current general recommended asset allocation is 65% equities, down slightly from recent levels; 20% bonds, down slightly from recent levels; and 15% cash, up slightly from recent levels.  

• Standard & Poor's 500 consesus corporate earnings per share are forecast to be up only 3% in all of 2022 vs. 2021, per Yardeni Research at https://www.yardeni.com, YRI Forecasts .  They are forecast to be up 9% in 2023 on a consensus basis according to Yardini Research. 

• General domestic equity markets have struggled this year due to slowing corporate earnings growth and rising interest rates.  

• Our moderate and aggressive balanced benchmark accounts were down 21.91% and 23.18%, respectively, year-to-date through June, 2022.  They were up 13.75% and 17.47%, respectively in 2021. Please see our Performance Data Sources section for appropriate benchmark comparison sources.  We continue to assess our asset allocation percentages relative to growth expectations and market conditions on a regular basis. 

• BKS