June was another positive month for equity investors, as the S&P 500 climbed 3.5%, while the fixed-income benchmark ETF AGG declined 0.5%. Looking ahead, our Stock-Bond Barometer model modestly favors bonds over stocks for long-term portfolios. In other words, these asset classes should be near their target weights in diversified portfolios, with a slight tilt toward fixed income, given the rise in yields over the past year. We are over-weight on large-caps. We favor large-caps for growth exposure and financial strength, while small-caps offer value. Our recommended exposure to small- and mid-caps is 12%-13% of equity allocation, below the benchmark weighting. U.S. stocks have outperformed global stocks over the trailing five-year period. We expect the long-term trend favoring U.S. stocks to continue, given volatile and erratic global economic, political, geopolitical, and currency conditions. That said, international stocks offer favorable near-term valuations, and we target 5%-10% of equity exposure to the group. In ter
CSCO, VZ, WRB, JNJ, MRK, ABT, GLW, WM, TRV, CME, SO, CMI, TJX, KO, OMC, COP, HON, KR, VRTX, CL, AEP, VMC, ROP, LMT, CMCSA, WEC, MCK, XOM, PG, GPC, HD, WMT, MAR
TPL, USB, FDX, TNGX, GS, HQH, CODI
UAL, META, ABT, CFG, KMI, NOK, CTAS, KEY
CTAS
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