Prediction: ‘Wealth Preservation’ Will Leave Lots of Money on the Table in the Last Half of 2023
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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%
💲 Amazon.com 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
💲 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%
💲 Amazon.com 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.
![](https://image.exct.tradesmith.com/lib/fe8213727c6200757c/m/1/8d23298e-9216-46e0-a7af-ebb2990a96e6.png)
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.