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Mastering Market Cycles with Douglas E. Greenberg: Insights for Pacific Northwest Investors Thumbnail

Mastering Market Cycles with Douglas E. Greenberg: Insights for Pacific Northwest Investors

Please click on the link to view the slide deck - PNWA Monthly Deck Jan 2024.pdf


Please click on the link to view the video - PNWA Monthly Video -January 2024

As the employment landscape shifts dramatically across industries, major players are streamlining operations to stay afloat. Financial Advisor Douglas E. Greenberg, serving Portland, Oregon, and the broader Pacific Northwest, sheds light on these transformations:

  • Workforce Reductions: Twitch is cutting its workforce by 35%, and Citigroup is downsizing by 20,000 jobs, primarily affecting its Mexico business. Telefonica is reducing its Spanish staff by 16% in a bid for increased profitability.

  • Cryptocurrency Cooling Down: Job postings in the cryptocurrency sector have dropped by nearly 60%, as indicated by LinkedIn data.

  • Investment Sector Adjustments: BlackRock is streamlining its personnel, reducing approximately 600 jobs to optimize operations.

These changes highlight a global trend of recalibration as companies seek to balance workforce size and profitability, according to Douglas E. Greenberg of Pacific Northwest Advisory.

Investing in a fluctuating market requires a long-term perspective. Douglas E. Greenberg emphasizes that "time in the market is your most steadfast ally," noting that stocks have delivered an average real return of 6.8% since 1928. Despite short-term volatility, stocks have consistently outperformed bonds and cash. The strategy here involves understanding market cycles, diversification, and resilience—key approaches for northwest advisors and their clients.

Credit contraction can have significant implications for individuals and businesses alike. When it becomes harder to secure loans or credit, it can signal the onset of an economic downturn. Douglas E. Greenberg advises Pacific Northwest clients to monitor these trends closely, as they can impact jobs, savings, and the overall economy.

Despite a strong third quarter in 2023, the economy may see a slowdown with rising interest rates. Such an increase typically leads to more expensive borrowing, potentially causing a reduction in investment and job growth. Economists predict a cooling of growth to around 1.0% in 2024 for the G-20 countries.

In the current financial climate, bonds are becoming an attractive option for investors seeking security, while stocks present a riskier proposition. Douglas E. Greenberg's guidance for Pacific Northwest investors is to weigh these options carefully and to choose based on one's investment strategy and risk tolerance.