Los Angeles, California – Spring has arrived, ushering in a season of renewal and change. As the days grow longer and the weather warms, it’s not just our homes that could benefit from a little spring cleaning. Investors, too, are encouraged to take a fresh look at their portfolios and make necessary adjustments in light of recent market events.

The past few months have been marked by significant shifts in stocks, bonds, currencies, and commodities. One of the most notable changes has been the unexpected rise in global bond yields, particularly in the US. This surge in yields has had a ripple effect on equity markets, with the S&P 500 Index experiencing a 3% decline from its peak in late March.

The driving forces behind these market shifts stem from a combination of factors – from resilient US growth defying recession expectations to sticky US inflation rates. As a result, the Federal Reserve has adjusted its rate hike timeline, leading to rising bond yields and a stronger US dollar in foreign exchange markets.

Additionally, surging oil prices reflect not only robust US and global growth but also rising supply concerns due to geopolitical tensions. Attacks on shipping routes have disrupted crude oil supplies, contributing to the increase in oil prices.

In response to these market dynamics, investors are advised to reassess their investment strategies. While higher bond yields are viewed as an opportunity rather than a risk, there is still a need to consider the potential impact of inflation, interest rates, and overall economic growth on investment decisions.

Looking ahead, longer-duration US Treasuries and high-quality corporate credits are identified as potential sources of attractive returns. However, caution is advised when it comes to lower quality credits, such as high yield, due to tight credit spreads.

Furthermore, despite recent market fluctuations, a commitment to global equities remains, with a preference for higher-quality stocks with sustainable dividends. The emphasis is on defensive sectors, as opposed to cyclical ones, in anticipation of a potential slowdown in US growth later in the year.

While the investment landscape may present challenges, there are also opportunities for savvy investors. By staying informed, remaining flexible, and periodically reassessing portfolio strategies, investors can navigate the ever-changing market conditions with confidence and adaptability.