Investment Strategy Update

Below is a link to our investment strategy update that reviews the first quarter of 2023. It starts with a summary section for those of you who may not want to read through the whole update; however, we encourage you to do so.

Last year was a historically bad one for both stocks and bonds. On a relative basis, our risk-managed strategies performed well. We are excited about this year’s investment opportunities. The main reason for optimism is that the rise in short-term rates is providing a decent investment opportunity for assets that we may not want to have invested in traditional stocks or bond investments. Within the constraints that we work with clients to establish for an account, we will adjust exposure to stocks and bonds from a minimum to maximum exposure. Last year, when stocks and bonds were both dropping, interest-bearing cash accounts and money market yields were very low, so money invested in them did not lose money, but it also did not make much. Now these rates are much higher, so money that we may want to position for capital preservation is earning a decent return. We anticipate a lot of volatility in the bond and especially the stock market this year, so having a higher yielding low risk investment option is a great tool that we did not have last year.

We encourage you to read the report by using the button below and contacting us if you have any questions or concerns. We prefer to discuss any concerns you have rather than have you worry about them. There may be issues that we can easily solve by adjusting your portfolio, and there may be others that can be explained, which could help reduce any worries you may have.