Newsletter Q1 2022

Shorepoint’s advice in the face of all these points is to keep your expectations for making money in 2022 modest. The market’s reaction to the dour news has been decidedly muted but the probability of a recession has increased. We are treating rallies thus far as bear market rallies. We have decreased our core bond exposure given the rising rate and inflation environment. In turn, we have added to income-producing assets that are more resilient to interest-rate risk, such as floating rate bond funds, short-term inflation-protected bond funds, and cash. In addition, we have been adding to stocks on weakness as we find pockets of value in stocks of great companies that are attractively valued in the broader market. Some areas that look especially attractive are in healthcare, communications, industrials, and finance.

Newsletter Q4 2021

Try not to stress about news, politics, and issues we can’t control. Instead, focus on what you can do. Read. Nap. Spend time with family. Watch a good show. Go for a walk or get some sunlight on your skin.

Ok we will get back to the financial advice:

  • Expect market volatility with lower returns.
  • Spend less in economic downturns.
  • Spend more but also save more during the good times.
  • Consider part time work if you are retiring early or plan to do so.
  • Engage with us on making sure your financial plan is as accurate as can be.
  • Think and talk with us about how much risk you are comfortable taking with your investments; we have tools to model various scenarios for you.
  • Believe in the process of investing; when you feel yourself faltering, compare your long-term investment returns to your bank accounts.

Newsletter Q3 2021

Shorepoint’s process is thoughtful, disciplined, and flexible. Please know that our team is working diligently to manage risk and returns as well as position your portfolio for the long term. There are always reasons not to invest, but staying the course usually wins out. We believe that appropriate portfolio diversification amongst asset classes can help buffer your portfolio from the ups and downs of market volatility.

Newsletter Q2 2021

Shorepoint’s process is thoughtful, disciplined, and flexible. Please know that our team is working diligently to manage risk and returns as well as position your portfolio for the long term. While we see areas of overvaluation in both equities and bonds, the worries you read about in the press are mostly priced into the market. There are always reasons not to invest, but staying the course usually wins out. We believe that appropriate portfolio diversification amongst asset classes can help buffer your portfolio from the ups and downs of market volatility.

Newsletter Q1 2021

Shorepoint’s process is thoughtful, disciplined, and flexible. Please know that our team is working diligently to manage risk and returns as well as position your portfolio for the long-term. There are always reasons not to invest, but staying the course usually wins out. We believe that appropriate portfolio diversification amongst asset classes can help buffer your portfolio from the ups and downs of market volatility.

Newsletter Q4 2020

We prefer dividend-paying stocks to bonds, although having an allocation to bonds in portfolios is appropriate for diversification and to reduce overall volatility. The bond market, particularly government bonds, continue to be concerning, with interest rates at record lows and over $15 trillion in international government bonds trading at negative interest rates. We continue to diversify the fixed income portion of your portfolio in non-traditional bond sectors which rebounded in the later half of the year. Within equities, we will use a sizeable market pullback to add to high-quality stocks as they become more attractive.

Newsletter Q3 2020

Our current portfolio positioning is conservative relative to your personal investment objective and risk appetite. We are holding the highest cash and lowest equity levels in accounts than we have in over 10 years. This is reflective of the current market and economic conditions, the pandemic’s negative impact, and the uncertainty around the presidential election. We expect that these factors will continue to lead to higher market volatility through the end of the year. However, we look to add to equities on any meaningful pullback. We expect that any additional government stimulus would be constructive to the economy and markets. In the interim, we continue to make adjustments to our equity holdings to improve the overall quality of your portfolio and to take advantage of attractive opportunities. Our goal is to identify companies that will create economic value in this environment and develop long-term competitive advantages.

Newsletter Q2 2020

We feel confident about the repositioning we were able to do during the pandemic and ensuing market volatility. While we are not aggressive buyers of stocks at current levels, we will likely add to high quality equities on any meaningful weakness. However, the bond market, particularly government bonds, is worrisome, with interest rates at record lows and over $15 trillion in international bonds trading at negative interest rates. Low interest rates are a negative for savers, and at these levels, Treasury bond yields cannot keep up with current and future inflation levels.

Newsletter Q1 2020

We are hopeful, like everyone, that the spread of the coronavirus will run its course as quickly as possible and that the number of human lives lost will be limited. In the meantime, we want to assure you that we remain laser-focused on client communication, planning and portfolio management to assure both current income and competitive returns through market cycles. We have taken the current market dislocation as an opportunity to upgrade our holdings into higher-quality companies with a more durable business model.

We expect spikes in volatility through the second quarter as investors assess the near-term spread of the coronavirus and other geopolitical events. While developments in any economic and human pandemic are nearly impossible to forecast, Shorepoint’s process remains thoughtful, disciplined and flexible. This is a time when experience matters. Know that the Shorepoint team is working diligently to manage risk and returns as well as position the portfolio for the long-term.

Newsletter Q4 2019

We are cautiously optimistic that U.S. equities, and in particular dividend growth stocks with high free cash flow, can continue to move higher in 2020. In an economy with modest growth, low interest rates and above average valuations, returns will likely be driven by earnings growth. Recall from last quarter’s newsletter that we lowered our return expectations in September across stocks and bonds. We expect spikes in volatility through the year as investors assess the U.S. elections, trade negotiations and other geopolitical events. While developments in any macro category are nearly impossible to forecast, Shorepoint’s process remains thoughtful and flexible as we deal with the lowest interest rates and political conditions we have not seen in years.