Market Update / NY Life insurance

Investors face numerous changes in the economic and market environment, from higher inflation, geopolitical risk, and rising interest rates. However, there are always risks to investing, and cash can be a significant drag on a portfolio when inflation is on the rise. The U.S. economy remains on strong but slowing footing: job growth and wage growth remain at robust levels, and companies and households have built stronger balance sheets than in the previous crisis. Growth momentum is slowing as interest rates rise to offset inflation. In all, we encourage investors to stay invested, adhering to their strategic goals and focusing on balance and diversification. Equities are poised to outperform bonds, but as equity market volatility picks up, bonds should offer some downside participation for portfolios. Still, not all bonds are created equal: rising volatility and higher interest rates may require investors to broaden their asset allocation toward non-core fixed income – which has historically outperformed in this stage of the cycle. In equities, we continue to diversify with value, leaning toward some traditionally defensive sectors that deliver strong earnings and dividends even in a less supportive growth environment.