Page 3 - ISQ UK_October 2021

OCTOBER 2021

vasse-like decline at this early stage of the bull market. As any hiker Skilled mountain climbers undergo months of preparation: visual-
knows, the higher the altitude, the thinner the air becomes. While ising their goals, conditioning their bodies, packing for inclement
the S&P 500 has avoided a 5%+ pullback for over ten months, the weather, and evaluating the best route (and alternatives) to reach
market may experience temporary periods of fatigue. But given the the summit. Wise investors practice similar preparation when pre-
supportive long-term fundamentals, equities should regain their paring for their financial future: identifying objectives, assessing
footing and offer up some attractive buying opportunities. risk tolerance, protecting against events that could be detrimental
to the plan, and determining asset allocation parameters that act
US equities remain our preferred region, as the strong economic
recovery and magnitude of earnings growth make it the leader of as a compass for the stated goals.
the pack. Given the recovery’s durability, we favour select cyclicals. Our outlook serves as a panoramic view of the economy and
Clipped to our carbineer are the Consumer Discretionary, Finan- various asset classes as we enter the final quarter of 2021. We
cials, Communication Services, Industrials, and Energy sectors. understand that there can be an avalanche of financial headlines
From a market capitalisation perspective, we’re eyeing opportuni- at times, but with confidence in your plan and a trusted advisor as
ties for small-cap stocks as the Delta variant falls off, as they are your spotter on the belay rope, we hope you have the guidance and
more highly leveraged to recovery prospects. For similar reasons, tools needed to move mountains when it comes to accomplishing
we remain constructive on the emerging markets when assessing your investment objectives and that you reach your investment
international exposure, particularly select regions in Asia. A ramp summits safely.
up in the pace of vaccinations in the region could create near-term
opportunities given the relative attractiveness of valuations. How-
ever, as the recent regulatory-induced equity declines in China
have shown, active management is paramount to grapple with the
complexities of these less-liquid markets. Lawrence V. Adam, III, CFA, CIMA®, CFP®
Chief Investment Officer, Private Client Group

All expressions of opinion reflect the judgment of the Chief Investment Office and are subject to change. Investing involves risk including the possible loss of principal. Past
performance may not be indicative of future results.

Investment Strategy Committee Members

Lawrence V. Adam, III, CFA, CIMA®, CFP® – Committee President, Joey Madere, CFA Senior Portfolio Analyst, Equity Portfolio & Technical Strategy
Chief Investment Officer, Raymond James
Ed Mills Managing Director, Washington Policy Analyst, Equity Research
Chris Bailey European Strategist, Raymond James Investment Services Ltd.*
Pavel Molchanov Director, Energy Analyst, Equity Research
Scott J. Brown, PhD Chief Economist, Raymond James
James C. Camp, CFA Managing Director, Strategic Income, Tracey Manzi, CFA Senior Investment Strategist, Investment Strategy
Eagle Asset Management*
Doug Drabik Managing Director, Fixed Income Research Chief Investment Office
J. Michael Gibbs Managing Director, Equity Portfolio & Technical Strategy Anne B. Platt, AWMA®, AIF®, RICP® – Committee Chair, Vice President,
Investment Strategy
Nick Goetze Managing Director, Fixed Income Solutions
Giampiero Fuentes, CFP® Investment Strategy Manager, Investment Strategy
Nicholas Lacy, CFA Chief Portfolio Strategist, Asset Management Services
Kailey Bodine Investment Strategy Analyst, Investment Strategy

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