Remember the feeling you had after surviving the first jaw-dropping plunge on a roller coaster, only to realize that the next one was just seconds away? This same experience is being replicated by equity markets today and in general, investors are understandably holding on for dear life. But not our clients. Why? Because our model portfolios have significant downside protection built in, through the inclusion of lower-risk asset classes including government and corporate bonds and equity funds with a bottom-up Value Managment approach.
The high water mark for 2018 was January 26th, with the S&P 500 hitting 2872 compared with 2636 as of ATW being posted. This drop of over 8% is more than twice the decline of our portfolios, showing that our focus on capital protection as the cornerstone of wealth management works.
Delivering an investment experience with less volatility is critical to ensuring clients remain invested for the long term. In other words, staying safely seated, with arms inside the car until the ride has safely come to a end. We’ve managed client money for over 25 years and ensuring our clients are safely buckled up is something we take great pride in.
Market ups and downs are part of the experience, and we’re riding right along with you!