Page 3 - ISO April 2023

INVESTMENT STRATEGY QUARTERLY

improve, stock markets on both sides of the Atlantic Ocean The last year or so has been challenging for investors, with
should move higher. While selectivity remains paramount, given many assets, from fixed income to equities, still in the red. But
the economy’s transition, we continue to favour Technology, we see that red and want to paint it black. If our assessment is
Health Care, and Financials, among others. correct, we are past the bottom in both the equity and fixed
income markets, and we’ll probably see performance improve
Internationally, we still favour the US over other developed
markets. Europe has been like Jumpin’ Jack Flash in a crossfire into this year and next. Short-term volatility may rattle mar-
hurricane given its proximity to the Russia/Ukraine war. Europe kets, but a focus on diversification and asset allocation should
has managed to navigate the effects of the war for now, thanks help guide us through those threats. As always, your financial
advisor is there to take the lead or serve as backup to help har-
to the warm winter and unprecedented shift away from Rus- monise your portfolio. Remember: patience and a long-term
sian natural gas. But the euro zone’s recovery must survive focus are vital. After sixty years, the Rolling Stones are still
tighter monetary policy as European Central Bank hawks focus touring and filling stadiums—with Mick Jagger singing and
on stubborn inflation and a tight labour market. Higher rates Keith Richards still going on the guitar! Like them, focus on
and a housing downturn may expose vulnerabilities in countries continuing success over the long run!
geared to shorter-term mortgages. While both the euro zone and
the US will likely experience a recession, history suggests Amer- It’s only rock ‘n roll, but I like it!
ican companies are more adept at navigating slowdowns.
Emerging market equities remain attractive as China has not yet
felt the full boost from its much-touted post-COVID reopening,
but the potential for robust growth still exists. If oil reaches our
$90/barrel year-end target, Latin American equity indices
should benefit. Lawrence V. Adam, III, CFA, CIMA®, CFP®
Chief Investment Officer

Investment Strategy Committee Members

Lawrence V. Adam, III, CFA, CIMA®, CFP® – Committee President, Nicholas Lacy, CFA Chief Portfolio Strategist, Asset Management Services
Chief Investment Officer
Joey Madere, CFA Senior Portfolio Analyst, Gibbs Capital Management*
Eugenio J. Alemán, PhD Chief Economist, Raymond James
Tracey Manzi, CFA Senior Investment Strategist, Investment Strategy
Professor Jeremy Batstone-Carr European Strategist,
Raymond James Investment Services Ltd.* Ed Mills Managing Director, Washington Policy Analyst, Equity Research
James C. Camp, CFA Managing Director, Strategic Income, Pavel Molchanov Managing Director, Energy Analyst, Equity Research
Eagle Asset Management*
Doug Drabik Managing Director, Fixed Income Research Chief Investment Office
Giampiero Fuentes, CFP® Economist, Raymond James Anne B. Platt, AWMA®, AIF®, RICP® – Committee Chair, Vice President,
J. Michael Gibbs Managing Director, Gibbs Capital Management* Investment Strategy
Nick Goetze Managing Director, Fixed Income Solutions Matthew Ziyadeh, CFA Investment Strategy Analyst, Investment Strategy
Lindsay Smith Investment Strategy Analyst, Investment Strategy

3 *An affiliate of Raymond James & Associates, Inc., and Raymond James Financial Services, Inc.