International Markets Offer Better Entry Points Than US Amid Volatility, Says McKnight

Investment Strategy Amid Volatility

• 💡 McKnight advises against holding a large cash position, even with anticipated volatility, advocating instead for a balanced and diversified portfolio.
• 📈 Bonds have performed well year-to-date and through recent market storms, making them an attractive allocation.

Bond Market Opportunities

• ⚠️ While acknowledging bond market volatility, McKnight suggests leaning into the short end of the curve.
• 🏦 Focus should be on high-quality, investment-grade corporate bonds, avoiding high-yield due to widening spreads and economic uncertainty.

International Market Advantages

• 🌍 McKnight suggests looking outside the US for investment opportunities, arguing that international markets were undervalued entering the current economic climate.
• 🇺🇸 In contrast, US markets were considered somewhat frothy, making international markets a potentially better entry point despite similar economic growth prospects.
• 🎯 The lower starting valuations in international markets present a better opportunity for investors.