We are likely to remain in a volatile market as we continue to see the ripple effects of the policy responses to the pandemic. It is precarious to drift too far away from home when you really can’t see a clear view on the horizon. At the moment, it seems prudent to reduce highly speculative risks and tactically move towards higher quality themes.
We believe that every month of data and every move by policy makers shifts us closer to normalization of economic conditions. As we start to see the waters calming and the ripple effects dissipating, we will again look to favor return over safety.
The more defensive positioning to shorter duration, higher quality, and non-traditional exposures is the prudent way to navigate through today’s uncertainty. Our Investment Committee breaks it all down in our September edition of the Valley Private Bank Market Update.
Michael Zaremsky is the Head of U.S. Private Banking at Valley Bank. You can reach him at 212-407-4372 or by email at firstname.lastname@example.org
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