Prediction: ‘Wealth Preservation’ Will Leave Lots of Money on the Table in the Last Half of 2023

By TradeSmith Editorial Staff

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When the bear market, inflationary issues, and some other economic bumps eviscerated $6.8 trillion in wealth late last year, regular folks abandoned the bull market arms race – and shifted into a “wealth-preservation mode” for 2023.

And try to preserve they did: Cash in money market funds hit a record $5.3 trillion by May.

But as we so often see with “feel right” investment moves, this has become the latest example of emotions trumping logic — and regular folks just falling further behind as a result.

These “wealth-preservationists” were so afraid of losing money that they missed out on some incredible wins this year — wins that would’ve eradicated last year’s losses and leapfrogged them ahead of the pack.

The national average APY (annual percentage yield) for money market accounts in June was 0.44%.

For the cash-on-the-sidelines crowd, that’s a get-left-behind kill shot when you look at the supercharged gains of the “Magnificent Seven” this year:

💲 Nvidia Corp. (NVDA) Stock Price Year-to-Date: +217%
💲 Tesla Inc. (TSLA) Stock Price Year-to-Date: +160%
💲 Meta Platforms Inc. (META) Stock Price Year-to-Date: +147%
💲 Microsoft Corp. (MSFT) Stock Price Year-to-Date: +44%
💲 Inc. (AMZN) Stock Price Year-to-Date: +56%
💲 Apple Inc. (AAPL) Stock Price Year-to-Date: +52%
💲 Alphabet Inc. (GOOGL) Stock Price Year-to-Date: +40

Of course, the old woulda/coulda/shoulda exercise in regret can’t erase that cash/stocks gap. But you can make the right moves going forward.

That’s why I’m sharing a recent strategy discussion between two of our top income experts — who also happen to be two of the very best in the business: Analysts Mike Burnick and John Jagerson.

Both experts see a strong finish to 2023.

To hear why they believe this, hit the “play” button in the image below.

Within that video, Mike and John also talk about something that jumped out at me about the difference in performance between a consumer staple ETF and a consumer discretionary ETF.

I’ll have more on that — as well as an investable opportunity — later this week.