As contrarians, we are taking advantage of this correction and the positive macro environment to increase equities by 2% to 3% in client accounts (based on your investment objective/risk tolerance) which is a slight overweight from our neutral allocation. We will be funding this allocation by decreasing your bond allocation. If the stock market corrects further (between the 10-20% levels), we will be advocating a “buy the dips” approach. The market volatility is providing Shorepoint with an opportunity to upgrade your portfolios by adding to high quality, attractively valued companies that have robust cash flow and/or dividend growth prospects, strong earnings growth prospects and solid balance sheets. It is likely that you have noticed more trades than normal in your accounts as we reposition portfolios. We are also adding to international stocks in developed and emerging markets. As for non-equity income areas, we still favor a diversified allocation that includes short-term bonds, emerging market bonds, leverage loan funds, energy MLPs, REITs, etc.
Overall, Shorepoint’s core philosophy is to manage diversified portfolio of quality, reasonably valued assets based on your investment objectives and risk tolerance. This has and will prove to be a successful investment strategy over the long-term. We seek to take advantage of opportunities as they arise and generate attractive long-term returns to help our clients reach their financial goals. As always, we are available to discuss your concerns and answer your questions.