“We didn’t really have a market where we let the small caps in different sectors work. It was really a tight market that held the indices, ”he said, cautioning investors to watch out for the market to expand as it goes on. “There is a lot of marginal cash available for stocks that should do. So it all adds up to volatility in the next year or so. «
Taylor cautioned investors not to be complacent as returns have been easier for a while. He encouraged them to look into risk-based solutions. Some products have hedging to minimize vulnerability. Investors could also look for alternatives such as structured notes, which they expect to continue to perform well in this interest rate environment, and other strategies that may outperform the market.
He also believes that increased investment in real assets, especially commodities and real estate, will help investors protect themselves from inflation and minimize the risk of a loss of purchasing power that could affect their spending behavior and retirement goals.
Taylor said investors are still embracing environmental, social, and governance (ESG) products, but “it’s not really black and white. There will be different shades of gray. ”He cautioned investors to avoid some sectors, such as energy, as they are working on greener energy sources.
«It’s not going to happen overnight, so I think you should look at the energy transition and really focus on what companies are doing to move us into a new world of cleaner energy,» he said. «And look at the technologies, whether natural gas or renewable energies, that can work with the energy sector.»