From Our Blog:

Does Your Crystal Ball Bounce?

What is happening in the stock market?

We currently observe weakening economic conditions and slowing corporate earnings growth combined with elevated equity valuations. With the odds of the U.S. economy slipping into recession increasing and heightened levels of geopolitical risk, we believe it is prudent to focus on capital preservation, reduce portfolio risk, and maintain a conservative bias. Periods of market volatility create opportunities to “buy low” as stocks go on sale. By reducing risk and “keeping some powder dry”, we strive to limit the impact from potential market weakness while preparing for selective additions as we identify attractive risk/reward candidates.

Where can I make money?

This past year proved to be a really tough year to make money in the markets as a majority of asset class returns disappointed. Besides U.S. large company stocks, almost every other asset class fell in 2015. Significant declines in energy, emerging markets, and commodities created a challenging environment for broadly diversified portfolios. Setbacks in mid-size company, small company, and international stocks, combined with meager bond market returns, only added to the dismal results that left the Morningstar objective-based benchmarks (conservative, balanced, moderate, or aggressive) each down 2-3% for the year. The minimal amount of gains available within the investment universe in 2015 made it the worst year for finding returns since 1937, when the cash-like 3-month Treasury bill beat out other major asset classes with a meager return of just 0.3%.

What is our investment outlook?

We currently observe weakening economic conditions and slowing corporate earnings growth combined with elevated equity valuations. With the odds of the U.S. economy slipping into recession increasing and heightened levels of geopolitical risk, we believe it is prudent to focus on capital preservation, reduce portfolio risk, and maintain a conservative bias. Periods of market volatility create opportunities to “buy low” as stocks go on sale. By reducing risk and “keeping some powder dry”, we strive to limit the impact from potential market weakness while preparing for selective additions as we identify attractive risk/reward candidates.
recession warning
Economics
Ryan Baldwin

Recession Warning: Are you Ready?

Financial markets continued their decline in the second quarter as both stocks and bonds remained volatile. The S&P 500 (equities) realized its worst first-half performance since 1970 (-20.0%) and the Bloomberg Barclays Aggregate Bond Index (fixed income) had its worst start to a year ever (-10.3%)! […]

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Investor Education
Steven Hannigan

Stablecoins – Not so Stable?

Cryptocurrency continues to make headlines, just not in the way we have become familiar with in the last year. As volatility in crypto assets has shown no signs of abating, crypto investors looked for other avenues to have exposure to a digital currency that could be more stable… enter Stablecoins. […]

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twitter-sale
Investor Education
Steven Hannigan

5 Things you Need to Know About Elon Musk Buying Twitter

The whole world is buzzing, or tweeting, about Twitter as the recent news that Tesla CEO Elon Musk tendered a $44 Billion offer to buy the company, and the board of directors accepted the offer. So what happened, what happens next, and what happens to shareholders? First, let’s define a few key terms: […]

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