Geopolitical Tensions and Your Portfolio

It’s quite an understatement to say that it has been hard to watch the atrocities in Ukraine, as Russia continues to invade them. This is undoubtedly one of the most significant geopolitical events in decades. As we reflect on the news, we are primarily concerned about the countless innocent lives that will be impacted by this war. Our thoughts and prayers go out to any of you that have friends, family, or loved ones in the region.

 

As we look at the financial impacts, Geopolitical events like military or economic conflicts can affect stock markets in many ways. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Three Questions I’d Ask About Downturns

Stock markets have sold off this year, from what primarily looks like the fear around Russia invading Ukraine. There is also news of higher inflation (after decades of low inflation), as well as interest rates and some other headlines. Recently, the driving force seems to be Russia, however.

So far, what we’re seeing is a very normal type of pullback. As long-term investors, we need to expect downturns from time to time, and this is nothing outside of normal.

However, if this is giving you worry in any way, here are three questions to ask yourself:

 

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Pete Dixon, CFP®

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Pete Dixon, CFP®

Partner and Advisor

Allocating Your Assets: Your Biggest Investment Decision

It’s so ingrained in how we manage our clients’ investment portfolios, we talk about it all the time. “Asset Allocation”. But what is it? What are assets, and what happens when you allocate them?

Asset Allocation: The Big Picture

Big picture, an asset is anything beneficial you have or have coming to you. For our purposes, it’s anything of value in your investment portfolio. After bundling your investable assets into asset classes, we allocate, or assign, each asset class a particular role in your portfolio. And we think this is one of the most important investment decisions you can make.

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Waypoint Wealth Management

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Waypoint Wealth Management

You (Get To) Choose Which Game To Play

We hope that you and yours are doing well as we swing into the holiday season. In a world both wondrous and sometimes weird, you may have mixed emotions about the days, months, and the new year ahead of us – an intermingling of fear and optimism, hope and hesitation, possibly even sorrow and joy.  And you may have noticed that the markets have been swinging through every one of these same emotions as well, in real, seemingly manic time.

For capital markets, that’s perfectly alright. In fact, it’s precisely what they’re supposed to be doing. Out of the seeming chaos, an efficient method arises for setting and re-setting relatively fair pricing. It’s exactly how tens of millions of trades occur every day, at lightning speed, around the world. If prices instead grew sluggish or stagnant, so too would our ability to make money in the markets.

That said, while apparent mayhem may make perfect sense for moving markets, it’s not how you need to live when thinking about your portfolio. As an individual investor, you get to choose which game to play. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Active Management’s Surprising Survival

While this article does get a little into the technical side of investing this month, its theme is at the core of our philosophy at Waypoint so we think it’s a good reminder to investors and clients.  It involves the idea (myth, really) that investors can consistently create “alpha” or out-performance by making changes to their investments (or hiring someone to do so) based on their current opinion with where we are economically or politically or historically.  Recently, our Director of Research with the BAM Alliance Larry Swedroe wrote (again) about the truths and myths of “active” investment management and the attempt to outperform:

It’s truly an amazing paradox. According to the Thomson Reuters Lipper second-quarter 2018 snapshot of U.S. mutual funds and exchange-traded products, active funds of all kinds, including money market funds, manage about $16.4 trillion.

That’s more than 2 1/2 times the $6 trillion managed by passive funds and ETFs. That’s also despite the overwhelming evidence that active management is a loser’s game (one that’s possible to win, but with odds of doing so that are so poor, the winning strategy is not to play). > SEE MORE

The BAM Alliance

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The BAM Alliance