Against this backdrop, the Investment Committee is happy to report that the model portfolios tracked by the committee have continued to outperform their risk adjusted benchmarks over the last one, three, and five years. We are only making changes to one of our small account models, at the present time. This will provide more international diversification to the portfolio, as we believe that between lower valuations overseas, more rapidly reopening economies in Southeast Asia, and the potential for a continued falling dollar would be supportive of these strategies.
From a technical standpoint, the markets are sitting near all-time highs, and seem to be coming up against some near term resistance. We believe that any pullbacks will be muted by both fiscal and monetary support, and hope surrounding the vaccines rolling out. At this point in time, any pullbacks should be viewed as buying opportunities, as we believe that the overall outlook remains constructive for risk assets in the near term.
What a year it has been!!
If you were reviewing your portfolio and financial plans with your advisor last December, and they told you, “Over the next 12 months, we will experience a global viral pandemic, a stock market drop of more than 30%, economic shutdowns and government mandated quarantines, social unrest and mass protests, and a bitter partisan divisive election. But don’t worry, your accounts will perform well, and actually will be higher by the time we review them next year.”, you likely would not have believed it, and probably neither would your advisor…and yet, here we are!
The Investylitics Committee is happy to have been here to provide advice, guidance, and confidence as we walked together through a year that we will all remember and talk about for years to come.
Should you have any questions regarding these notes, please do not hesitate to reach out to your advisor. We thank you for your continued trust and support and wish you and your family a Merry Christmas and Happy New Year. Bring on 2021!
Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.