Peaks and Pauses

Matthew Allgood |




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Historical patterns show that peaks in household equity exposure have preceded long periods of muted market performance. These stretches of stagnant returns can be seen in the chart below highlighted in rectangles, right after the circles indicating the new high level of household equity exposure.


While we can't predict the future, recognizing these trends can guide us in managing risk and making informed investment decisions, rather than chasing trends.


Peaks and Pauses


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Source: Bloomberg, FRED, Redwood. Data as of 5/16/2024. Date ranges from 12/31/1951-12/31/2023.



Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss.  Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above.


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