Pence Wealth Management President on Markets

Pence Wealth Management, Inc. (“PWM”) is a financial services practice within LPL Financial LLC (“LPL Financial”) comprised of multiple financial professionals that provide a series of services including personal investment advisory, third party managed advisory and brokerage services. PWM is an investment adviser registered with the State of California to provide financial planning services. The financial professionals affiliated with PWM are registered with and offer securities and investment advisory services through LPL Financial, member FINRA/SIPC and a registered investment adviser. As of 12/31/2021, the total assets serviced by PWM through LPL Financial consist of over $1.95 billion in advisory and $383 million in brokerage assets.

U.s equities and bonds fell as traders weighed hawkish fed commentary and a new round of potential sanctions on russia our next guest expects the macro environment to remain challenging but doesn’t see a u.s recession this year with us now is leila pence president at penn’s wealth management leila always get having you with us so does that mean that the market

Should start pricing in a few 50 basis point rate highs by the federal reserve this year yes we’re expecting a 50 basis point in may and june and then we think we’ll they’ll wait and see what happens but there’s still going to be some additional increases of interest rate the end of the year inflation is definitely running high so and the market is expecting

That so when you have this environment of rising yields perhaps a faster fed rate hike with bigger hikes as well how do you hedge you really uh you just have to wait it out uh you have to be selective what companies you own uh you can’t just buy the market as a whole it’s a stock by stock selection and but the environment the economy is so good we still expect

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Three percent gdp i mean for the longest time we were happy with two percent gdp that’s what we got now we still expect even with higher interest rates as three percent gdp there’s still 1.7 jobs opening for for every unemployed person and we have 2.3 trillion dollars of extra savings so the economy is still going to do quite well it’s still going to grow it’s

Just the growth is going to be a lot slower so are earnings expectations still going to be the main driver this year yes and so far uh the earnings uh have not really come down because of all those things i’m talking about there’s a lot of money in the economy there’s a lot of pay raises people are making a lot more money and with the covet and all the pent

Up demand that we’ve had the last couple years there’s going to be a lot of spending and as you know gdp 70 is consumer spending so the consumer still has money and they will be spending even though of course inflation will affect some of that spending but there’s still plenty out there to spend and that’s why we revise our gdp lower than what it’s before but

Still we still expect growth we don’t expect a recession and uh things are definitely you know going to slow down but not time to bail out and you still think there’s further to go when it comes to energy plays how are you getting exposure to energy and commodities uh certainly through energy stocks and commodity stocks we we have increased our exposure to

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That area we do continue to see uh increases in prices there and uh we uh you need to you know every portfolio needs to have some of that exposure uh as well as infrastructure uh holdings i think there’s gonna be a lot of spending in that area with the new bill and the new budget that president biden put in so we we really like that area as well how do you

Factor in the strength of the dollar because we have really seen it be a driver in currency markets but at the same time every other central bank seems to be raising rates now yeah so anytime you raise interest rates the the dollar is going to go up uh and uh that’s something that certainly will help will will hurt companies that have a lot of uh uh importing

Uh exporting so you know that the dollar increases is good for united states it’s not good for europe or the rest of the world layla pants depends wealth management president we appreciate your time coming up twitter appoints elon musk

Transcribed from video
Pence Wealth Management President on Markets By Pence Wealth Management