Market Update – February 2023

Join Chad Larson, Senior Portfolio Manager, as he gives his thoughts on the market for February 2023.

Welcome to the MLD Wealth “Money Matters” podcast. I’m Chad Larson, and I’m excited to guide you through our February market commentary and outlook. In today’s episode, we’ll dive into some of the most pressing topics in finance, including inflation, recession, and the ever-evolving energy trade. We’ll start by discussing the current state of liquidity levels and GIC rates, emphasizing the balance between seeking stable returns and managing market risks.

As we delve deeper, we’ll address the ongoing conversations around a potential recession. I’ll share why it’s crucial to position your strategies ahead of consensus expectations. We’ll then explore how macroeconomic headlines drive market volatility and the subsequent impact on equity performance. This analysis will help you understand the intricate relationship between news events and market movements.

A key theme in today’s episode is the power of contrarian thinking. By staying ahead of consensus and thinking differently, you can position yourself for outperformance. We’ll also examine the importance of low hedging levels and other positive performance indicators that signal potential market opportunities.

Our conversation will then shift to an outlook on earnings estimates and highlight opportunities in sectors such as energy and gold. I’ll explain why unconventional thinking is essential for investment success in these areas. Additionally, we’ll touch on the importance of monitoring risk indicators like hedging levels and investor sentiment to identify valuable insights into market conditions.

We’ll wrap up by discussing strategic allocation in sectors like energy and gold and making tactical adjustments in fixed income to position portfolios for growth and resilience. By focusing on quality companies with strong fundamentals and resilient balance sheets, we can navigate market uncertainties effectively.

I hope you find today’s episode both informative and actionable. Stay tuned to enhance your investment decisions and remain proactive in navigating today’s financial landscape.