March Power Hour – Investment Strategies

 

Financial Advisor webinar in Verona, WI

CLICK HERE  to watch the full Power Hour!

This Power Hour is packed with powerful insights about investment strategies, risk management, and timely updates from our portfolio management team. Here are some key highlights!

Key Number One –If someone is managing your portfolio, you need to know how and what they are really doing for the fee you are paying (and if there are hidden fees!).

There a many management styles that are little more than robo-investing, meaning the pie chart stays pretty much the same, there are just slight adjustments or rebalancing done from time to time.

Forward-looking is really important, not just historic data.

Think about it like this… Remember the first Garmin GPS? It was a great tool but it did not stay up-to-date automatically nor did it give you real-time traffic or construction updates. It showed you the best route historically, however, if the roads had changed or if there was construction on that route you would be lost or slowed down for a while. Now the new GPS in your phone or car is updated automatically in real-time, this is forward-looking. It isn’t just the best historic route but the best route for this point in time-based on what is happening right now.

Key Number Two – What are the guiding principles of your management team?

Our team has two mandates, capture competitive returns while taking less risk. Everything is done with that perspective.

Key Number Three – The 3 D’s of Risk Management, Diversification, managing Dependent positions, and Dry Powder.

Using our Growth and Income strategy, Jordan breaks down what this looks like in action.

Diversification is not just having different funds or different stocks. It is risk management from a top-down perspective. What are the industries that are positioned to do good during this time(top positions in the portfolio), what are the industries that will struggle (less or no exposure here) with a balanced approach in the areas of uncertainty?

Managing a Dependent position is risk management from the bottom up. It is about limiting the downside risk of your larger positions with stops in place.

Dry Powder is not only cash available to re-invest at the optimal times (stops in the point will raise more cash for this), but it is also gold* and inverse equity ETFs both of which will go up when markets go down.

Key Number Four – Find the Value

Value-based investing is another strategy that Tom highlighted for us. You could relate this to finding a deal at the store, but instead, you are finding mispriced stocks.  The goal here is better returns with less volatility.

In a value-based portfolio, there are two forms of risk management, strategic shifts, and hedges.

Strategic shifts are again about looking for sectors and industries with the most potential and avoiding those with the most risk.

Hedges can come in different forms. Holding gold* is a hedge as well as taking profits, meaning the goal is always to buy at a discount and sell when it is at a premium. If you still want exposure to that industry, then a swap is utilized, for example, you may sell Coke at a premium and then buy Pepsi that is selling at a discount.

Key Number Five – Whatever the strategy, your advisor and management team should be able to articulate what they are doing and consistently be communicating with you.

You don’t have to understand every little detail about what they are doing, but you need to know that they do!

*Gold and Silver are not just great hedges in your portfolio, but owning the physical coins is like having wealth insurance. Now is a great time to buy as precious metals are poised to soar! However, anyone can sell gold and not all are the same, it is not a regulated industry. So, if you have questions, give us a call as we have done the due diligence for you and have an awesome team to help you with this.

We serve clients in Mineral Point WI, Dodgeville WI, Platteville WI, Lancaster WI, Fennimore WI, Boscobel WI, Richland Center WI, Muscoda WI, Spring Green WI, Mazomanie WI, Sauk City WI, Middleton WI, Madison WI, Fitchburg WI, Verona WI, Mount Horeb WI, Barneveld WI, New Glarus WI, Monroe WI, Belleville WI, Oregon WI, Stoughton WI, Darlington WI, Cuba City WI, Hazel Green WI, Belmont WI, Dubuque IA, Freeport IL

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