Manager's Pulse: January 9, 2023

Manager's Pulse: January 9, 2023

January 09, 2023
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OVERVIEW:

U.S. equities rose last week on the back of an encouraging job report. Reports indicated that nonfarm payrolls rose by 223,000 in December, above expectations, and the unemployment rate fell to 3.5%, a level not seen since before the pandemic. Such reports gave further optimism to investors that the economy could be on its way to a possible “soft landing”. Out of all the S&P sectors, communication services and materials outperformed most, finishing 3.7% and 3.5% higher. Ultimately, the S&P 500 Index finished 1.47% higher. On the contrary, health care underperformed most, finishing the week -0.2% lower. Global yields continued to fall last week with the 2-Year and 10-Year U.S. Treasury yields finishing at 4.24% and 3.55%, respectively. Lastly, oil prices fell as well, with Brent an WTI crude finishing the week at $78.57 and $73.77 per barrel, respectively.

SPOTLIGHT:

The Multi PLUS models are the most diversified set of models within our Strategy PLUS offering. Each model within this series is uniquely constructed to provide the most comprehensive exposure to our Strategy PLUS offering. Holdings within these models include Tactical strategies, which range from those that will implement high cash/fixed income positions during periods of market volatility, to strategies that maintain full market exposure but tactically adjust various asset classes, sectors, or regions. Strategic strategies are also included and are built on long-term market expectations to offer investors full market exposure at all times. In addition, underlying holdings within the models provide both Active management via individual stock or bond selection, as well as Passive, lower-cost exposure to a specific index or benchmark. We believe the combination of these Strategic, Tactical, Active and Passive elements can deliver the desired portfolio outcome with greater diversification, improved risk management, and enhanced returns.

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DISCLOSURE

The information provided herein is the opinion of The Pacific Financial Group, Inc. (“TPFG”) a registered investment adviser, and may change without notice at the discretion of TPFG. Spotlight contains models managed by TPFG and represent TPFG’s opinion and evaluation of its models. All information is believed to be accurate but has not been independently verified and TPFG makes no warranties as to the accuracy of the information or any representations made or implied. The information should not be construed or interpreted as an offer or solicitation to purchase or sell a financial instrument or service. The information is for informational purposes only and should not be relied on or deemed the provision of tax, legal, accounting or investment advice. Past performance is not a guarantee future results. All investments contain risks to include the total loss of invested principal. Diversification does not protect against the risk of loss. Investors should review all offering documents and disclosures and should consult their tax, legal or financial professional before investing.

The indices are presented as broad-based measures of the equity, fixed income, and consumer markets. The indices are provided for comparative and illustrative purpose to provide a comparison of the model against the broader-based equity, fixed income, and consumer market.  The indices are not intended to reflect the investment objectives of the model as the securities held within the model will differ in market volatility, concentration, investment objectives, and diversification among others from those of the indices. The indices are not managed, and returns do not reflect the deduction of fees, expenses, transaction costs or taxes that actual client accounts are subject to. Investors cannot invest directly in an index. Returns are not annualized for periods less than1 year.

 Trailing Major Index Returns and YTD S&P Sector Returns are sourced from Morningstar Direct.

* Sourced from JPMorgan Asset Management, publicly available at https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/

 All other economic and market data sources may include, and is not limited to:

Edward Jones, publicly available at https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-marketweekly-update

Goldman Sachs, publicly available at https://www.gsam.com/content/gsam/us/en/advisors/market-insights.html

Rowe Price, publicly available at https://www.troweprice.com/personal-investing/resources/insights/global-markets-weeklyupdate.html