August 2022, Investment Ideas to Fuel All of Life’s Adventures

Greetings from Lion’s Eye Wealth,

Happy almost August! It’s hard to believe how fast the summer is passing as I write this amidst the monsoons here in Colorado. I hope you all are enjoying summer. There’s been a rush of financial news to report, so without further adieu, let’s get to it. 

Inflation: June’s inflation rate was 9.1%, a 40-year high. Let’s see where July comes in.

The Fed: On July 27, the Fed moved to curb inflation by raising interest rates 75 basis points with more raises to come.

Recession: We are officially in a recession by definition with two consecutive contracted quarters. 

Senate: Approved $280 billion US chip manufacturing. Remember when I said given the China-Taiwan conflict and the fact that Taiwan produces 60% of semiconductors worldwide that US semiconductors are a good investment? Nancy & Paul Pelosi traded ahead of the news which is now ushering in more controls for politicians with regard to trading. 

Oil: Oil is down from highs of $130 a barrel to $90. Many feel a variety of factors will still take oil prices higher and it is a buying opportunity currently. 

WHAT ARE INVESTING OPPORTUNITIES?

60% Stock/Equities to 40% Alternative Investments

I’ve written about the movement away from the traditional 60% stock/equities and 40% bonds to 60% stock/equities and 40% alternative investments. While there is no blanket pro rata share across the board for all investors due to tolerance for risk and time horizon, the movement out of bonds and into alternative investments has been a strong shift over the last decade. As you know, at Lion’s Eye Wealth, we have a strong, potentially even excruciating, vetting process for the most appropriate teams of professionals and strategies in the space. This includes Crystal Capital investments, ZEGA Financial, Galaxy Investments, and more. 

Flippening Stocks

Given the fast rate of change due to disruptive technology, we have a list of companies to buy into early as they are poised to perform well over the next 1-3 years. The stocks consist of: transportation 2.0, the future of health care, fintech, industry 2.0, 3D printing, clean energy, next-generation battery technology, and a few extras. 

Gold

From die hard gold enthusiasts to moderate to thinking gold is now officially dated, opinions on gold are vast but we believe as a hedge, an allocation to gold makes sense depending on preference, risk, and time horizon. 

Rebalancing

We believe this is a time for active, strategic management and wise rebalancing to take advantage of the economic news presented above and the investing ideas shared.

Have a wonderful August!

Warmly,

Lisa Durant