The Prudent Retiree - February 23, 2023

The Four Tops were one of the original chart-topping groups from powerhouse Motown Records. They personified “Detroit Soul” and played together for more than forty years. They were inducted into the Rock and Roll Hall of Fame in 1990. How many of you danced to their hits?

It is the same old song for the economy and the markets. The Four Tops sang, “it may break you up to hear it,” but the show remains inflation and the Fed. The Fed is determined to check inflation and will continue to raise interest rates to slow the economy and curtail spending. The Fed is pushing for so called demand destruction which most likely results in some degree of recession. Standing in the shadow and pushing back is the strength of the job market. Unemployment is at its lowest level in more than 50 years and aggressive rate increases have not yet slowed the economy.

What does this stalemate mean for the markets? Simple answer – no one knows and Prudent Retiree believes a continued 50% equity, 50% fixed is the appropriate allocation. We’ve been that way for almost a year. The same old song.

This year has started out better than last, but there is still considerable uncertainty. The metrics of our risk management model are mixed and we expect market volatility to continue. It wouldn’t be surprising if the market tested October’s low. We don’t have conviction in either direction and favor our split allocation. As always, Prudent Retiree will be there and we’ll reach out to the market for clarity and make appropriate decisions.

Hailey Jean Horseman, our first granddaughter, was born on February 10th. She came seven weeks early, but she is growing and healthy. She’ll have to be tough to handle her six boy cousins.

Too cute by half? I can’t help myself.

Here at Horseman Group, we strive to provide you with the highest possible level of customer service. Feel free to reach us at 314.692.7842 with any questions regarding your investments, risk management, or retirement. Should you wish to be removed from this mailing list for any reason, please respond to this email with your request, and your name will be removed immediately.

Horseman Group – 3 CityPlace Drive - Suite 290 – St. Louis, MO 63141 – 314.692.7842 – www.horsemangroup.com

Advisory Services offered through Horseman Group. Securities offered through AW Securities, a registered Broker/Dealer, member FINRA/SIPC.