Special Investment Update - March 23, 2026
Over the past week, markets have continued adjusting to shifting geopolitical and inflation dynamics. In our previous update, we noted that both gold and bonds had not behaved as typical defensive assets. We want to add a bit more context and clarity around recent portfolio activity.
Gold Positioning
Some clients may have noticed recent reductions in gold exposure within their portfolios. For those who did not, positions were not large enough to warrant a rebalance.
As gold moved below key resistance levels, historical patterns point to a higher likelihood of near-term volatility. Gold has also appreciated significantly, roughly doubling over the past eighteen months. We viewed this as an appropriate opportunity to trim positions and capture a portion of those gains.
Our longer-term outlook on gold remains unchanged. Ongoing U.S. deficits and rising debt levels continue to support its role as a strategic holding.
What This Means for Retirement Planning
Interest rates have continued to rise, with the move accelerating following last week’s Federal Reserve meeting. Bond prices move inversely to interest rates, which has led to recent weakness in longer maturity bonds.
In response, we are reducing duration in certain portfolio allocations by shifting from high quality longer dated bonds to high quality shorter dated bonds. This reduces sensitivity to rising rates and supports stability within fixed income holdings.
Portfolio Stability and Withdrawals
These adjustments are intended to preserve the role of conservative assets within portfolios. Clients should remain well positioned to access funds and continue planned withdrawals using the non-equity portion of their holdings.
As always, we remain focused on keeping portfolios aligned with current conditions and long-term objectives. If you have any specific questions regarding your portfolio, please do not hesitate to reach out to us!
Robert Amato, CFP®, CIMA®
Principal
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Compass Wealth Management is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where Compass Wealth Management and its representatives are properly licensed or exempt from licensure. This article is solely for informational purposes and is not intended to be relied on as a forecast, research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Compass Wealth Management to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investments involve risks.