Market Update Q3 2023: Overview by Michael Landsberg

Staying updated with the latest market trends is crucial in the world of finance. This article provides a detailed summary of the key points discussed in the Q3 2023 Market Update by Michael Landsberg, Chief Investment Officer of Landsberg Bennett Private Wealth Management .

Landsberg's insights delve into the current state of the economy, the Federal Reserve's actions, corporate earnings, and strategic portfolio positioning.

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Q3 Market Update Takeaways:

Federal Reserve and Interest Rates

Decisions made by the Federal Reserve significantly shape the #financial landscape. Michael Landsberg highlights that the Federal Reserve is expected to implement two more interest rate hikes. While this is beneficial for those holding cash due to high yields in #money markets, it's important to note that these hikes coincide with a slowing U.S. economy. This slowdown is evident from the negative corporate earnings reported in recent quarters.

The State of the Economy and Consumer Spending

Consumer spending, a critical driver of the U.S. economy, has seen a significant decrease. With credit card debt reaching new highs and cash reserves dwindling, the #financialhealth of consumers appears to be in a precarious state. This trend, coupled with negative corporate earnings, paints a somewhat gloomy picture of the economy's current state.

The Stock Market and Portfolio Positioning

The stock market is expected to face pressure due to the impending interest rate hikes. Interestingly, a small number of stocks, particularly those in the artificial intelligence sector, have driven the majority of returns this year.

When it comes to portfolio positioning, Landsberg advises caution and diversification. Sectors like #healthcare and defense are recommended, while international markets, particularly Japan, are highlighted for their economic growth. However, investments in China are discouraged due to its economic slowdown.

Gold, the US Dollar, and Real Estate

Landsberg suggests holding gold and a bit of the US dollar in portfolios. #Gold performs well when growth and inflation are slowing, which aligns with the current U.S. economic situation. The US dollar is also recommended as it typically does well in a slowing economy and slowing inflation.

The real estate market and banks, particularly regional banks, are areas of concern. Rising interest rates are expected to put pressure on those who borrowed money to buy properties when rates were low.

The Healthcare Sector

The healthcare sector is viewed optimistically, particularly companies in the obesity, diabetes, and joint replacement spaces. These companies are expected to do well as people live longer and these conditions become more widespread.

Disclaimer:

Landsberg Bennett is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable.

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[Advisor Practice] and Hightower Advisors, LLC, or any of its affiliates, make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. [Advisor Practice] and Hightower Advisors, LLC, assume no liability for any action made or taken in reliance on or relating in any way to this information. The information is provided as of the date referenced in the document. Such data and other information are subject to change without notice. This document was created for informational purposes only; the opinions expressed herein are solely those of the author(s) and do not represent those of Hightower Advisors, LLC, or any of its affiliates.