A Shift Towards Growth

Our focus has been on value stocks over the past year, which included investments in companies that were deemed undervalued by the market. These funds performed well over the course of the year and provided a more stable alternative to most equity sectors. However, a recent shift gives us a higher level of confidence in technology and growth-oriented companies. We’ve cautiously adjusted our mindset to a more opportunistic viewpoint, and we believe it’s the right time to shift back into sectors that underperformed last year in hopes to take advantage of quick growth.

In the fixed-income portion of our portfolios, floating-rate bonds have served as a reliable buffer against rising interest rates. Now that interest rate increases have slowed down, we believe it’s time to reallocate the capital from floating-rate bond funds to other opportunities. This month’s portfolio changes reflect a small shift away from bonds altogether, and a renewed focus on stocks with a growth trajectory. While bonds traditionally provide safety, we’ve looked towards new areas such as international and emerging markets to provide high levels of diversification without sacrificing potential returns.

We also want to remind you of an important upcoming deadline. If you have not yet maximized your IRA contributions for 2022, you still have time to do so. The deadline to make contributions is April 18th, and you can put up to $6,000 ($7,000 if you’re over age 50) into these accounts per year.

Croak Asset Management, LLC is registered as an investment adviser with the SEC. Croak Asset Management, LLC only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.For a detailed discussion of Croak Asset Management, LLC and its investment advisory services and fees, see the firm’s Form ADV on file with the SEC at adviserinfo.gov.

Information contained herein does not involve the rendering of personalized investment advice, but is limited to the dissemination of general information. A professional adviser should be consulted before implementing any of the strategies or options presented. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended by the adviser), or product made reference to directly or indirectly, will be profitable or equal to past performance levels.