Investment Strategy: Be Patient and Prepared Amid Market Enthusiasm

Despite the recent market rally, American Century Investments advises caution and patience when investing. Historically, major recessions have often followed periods of significant market growth. The big question remains whether the Federal Reserve is leading us towards a recession or guiding us for a soft landing. American Century suggests diversifying investments into short-term treasuries with attractive returns as a precautionary measure. They also highlight the importance of distinguishing between different types of equities, such as value stocks for lower volatility and high-tech growth stocks. The market rally of this year has been largely driven by a few select stocks, while many others remain flat.