November 9, 2020
A collective sigh of relief.... The election is behind us, and there is good news on a potential Covid-19 vaccine! We didn’t have large scale riots or civil-war; although Trump as predicted is contesting the “stolen election”. However, most of us continue to go on with our lives, and we have less reason to pay quite as much attention to Presidential tweets. The USA will have a centrist in the White House, and he will likely have to work both sides of the political spectrum to get any major legislation accomplished.
Financial markets are reflecting this new reality. Equity markets are higher as investors flee from the safety of fixed income and precious metals. Airlines, hotels, energy, and small company indices are all reflecting the brighter news this morning. What does this new information tell us here at August Wealth?
In general terms, we have used this morning’s gap higher in equity markets to reduce risk in portfolios. We believe the higher equity prices reflect a shift in public perception from anxiety to hope. We are still very positive on growth and markets, but obviously prices are now starting to reflect this collective relief. In our view of the world, things have not changed much, but the perception of reality has changed dramatically in a very short space of time.
We do not feel we have learned a great deal of new information in the past couple of weeks, but we do feel vindicated in our approach to risk and investing. Our process continues to follow these basic tenants:
Perception and reality are different. We remain committed to understanding how human nature and emotion can deviate from reality. November 9, 2020
We understand that we have little to no control over many situations and no control over the direction of financial markets.
Because we study the random nature of life and markets, we anticipate that we will see both positive and negative exogenous events.
We ask how those events will impact the risk in our portfolios.
Our disciplined investment process includes:
Your family’s appropriate risk level
Importance of diversification in your investments
Importance of flexibility as facts and sentiment change
Use of low-cost index funds to reflect our desired portfolio
Anunderstandingofvolatilityandtimingrebalances
Our fiduciary duty to put your financial interests ahead of our own
We are humbled by our client’s trust in us to help them navigate an uncertain future. If you would like to learn more about how we approach markets, and how we would construct a bespoke portfolio for you and your family, we would be happy to elaborate on our approach with you.
At August Wealth, we are motivated by the gratification that comes from helping you increase your wealth. By helping you achieve your financial goals, we help increase your freedom to spend more time on the things that matter most in your life.
Joseph Cardello, Principal August Wealth Advisors, LLC The Loft, 101 Franklin Street, Suite A Westport, CT 06880 Direct (916) 461-9451 toll free (800) 985-9477
jcardello@augustwealthadvisors.com
www.augustwealthadvisors.com
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA August Wealth Advisors. Trading instructions sent via email, fax or voicemail will not be honored. There is no assurance that these messages can be retrieved on a timely basis, nor is there any sure method of confirming the customers identity. The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence. Investing in the bond market is subject to risks, including market, interest rate, issuer credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies is impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed
コメント