With the domestic and international equity markets currently in bear market territory and the bond market in an even steeper bear market since October of 2021, the only places to best shelter in investments recently have been in the #1 ranked position Commodities, such as energy, agriculture, nonferrous metals, and precious metals.  Also, in Domestic stocks which are ranked #2 in strength, the best areas to invest in are energy, basic materials, utilities, consumer staples, and some real estate. Large technology and growth stocks such as Amazon, Apple, Google (Alphabet), Microsoft, and Tesla have been the hardest to hold as they have suffered the most in this market; however, the prospects for a strong recovery are good, and several of them have announced splits in the next month or two that might spur price increases when the stocks appear cheaper because of the lower prices. We are holding some cash in addition to the sectors mentioned above and would be holding even more cash based on our charts, were these sectors not generally faring better than cash and offering opportunities for growth and dividends. I am looking to raise more cash now when the opportunity presents itself.

For those of you who hold assets outside of White Oak Financial Management in qualified retirement plans such as in 401(k), 403(b), or other such company plans, or in annuities where we do not manage the accounts with discretion for you but do provide occasional investment guidance, I recommend that you raise some cash in those accounts for the time being until an opportune time to reinvest occurs. Your qualified retirement plan will either have a money market account, a guaranteed interest account, or stable value account option for money that you want to keep safe from market fluctuations. I recommend that you place 40% to 50% of your total plan balance into one or more of these safer options for now. Usually, I supply specific guidance for each plan when I have new investment option and allocation changes to recommend, but at this time I want to advise broadly and quickly. If you want specific guidance for your plan, such as total reallocation advice or advice about where to take funds from to raise the cash, please call or write to request it.

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