June 24, 2022
Are Your Investments a Mess?
Most Shadowridge clients already know that they don’t have too much to worry about in this market, because we’ve got you covered in that regard. However, for the many non-clients who get this letter, like a neighbor who said their investments are a “mess” due to the inaction of their adviser, this article is for you.
As I discussed in last month’s Money Matters webinar, Shadowridge clients have recently benefited from the Shadowridge investment management team making some timely portfolio adjustments.
In early March, the markets picked up some serious downside momentum. The S&P 500 Index lost another 20% from March 29th through this writing on June 17th, with the tech-heavy Nasdaq and small company Russell 2000 indexes losing even more. (source: FastTrack)
Like everyone, we had taken some uncomfortable losses early in this market downturn along with the major indexes. But when things stop working, our Shadowridge portfolio managers don’t just sit there and wring our hands. We Adapt to Changing Markets®. This is what makes us stand apart from ordinary advisers or do-it-yourself investors. It makes our service what many investors are looking for in this kind of a market. It is also the reason why many of you are already clients.
In March, when the decline in most indexes was still in single digits, Ryan called our entire Shadowridge team together in Austin. The trading team had several serious face-to-face discussions about what we were seeing. We agreed that this looked to be a major market decline that was unfolding, not some garden variety correction that would bounce back in a few weeks. So, we adapted.
We moved many investments to cash in client accounts and increased the use of inverse funds (those that go up when an index goes down) in several of our strategies. Since March, our most-used Shadowridge strategies have made only small loses or in one case, small gains. This is a far cry from the 20% losses most investors have faced in the same time period.
Your investments shouldn’t be a mess. If you are frustrated with your current portfolio, give us a call at 888-434-1427 for a portfolio review to see how our strategies that Adapt to Changing Markets® can help you sleep better.
Contact us now, before we get another leg down in this bear market.
* The model accounts mentioned in this article are hypothetical examples of how the strategy may work as designed. Performance and activity in client accounts may be different from that in the model in amount of each investment, specific timing of trades, and actual security used, which may vary from account to account. Not all trades are profitable. It should not be assumed that current or future holdings will be profitable. A list of all trades in these accounts for the past 12 months will be provided upon written request.
** Indexes are unmanaged lists of stocks considered representative of a broad stock market segment. Investors cannot invest directly in an Index.
This newsletter may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Information in this newsletter may be derived from sources deemed to be reliable, however we cannot guarantee its accuracy. Please discuss any legal or tax matters with your advisors in those areas. Neither the information presented nor any opinions expressed herein constitute a solicitation for the purchase or sale of any security.
In all investing, past performance cannot assure future results, and as such, our efforts are not guaranteed. Losses can occur. All strategies offered by Shadowridge Asset Management, LLC, adapt to changes in the markets by changing the investments they hold, therefore, comparisons to broad stock market indexes such as the unmanaged indexes mentioned may not be appropriate. Sometimes client accounts are invested in stocks or markets not included in these indexes. Past performance does not guarantee future results. Investment return and principal value will vary so that when redeemed, an investor’s account values may be worth more or less than when purchased. Mutual fund shares and other investments used in our managed accounts are not insured by the FDIC or any other agency, are not obligations of or guaranteed by any financial institution and involve investment risk, including possible loss of principal. Advisory services offered through Shadowridge Asset Management, LLC, a Registered Investment Advisor. Adviser will not transact business unless properly registered and licensed in the potential client’s state of residence.
Copyright (C) 2022 William T. Hepburn. All rights reserved.