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Market & Portfolio Review: 10-01-20

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There is NO ELECTION When it Comes to Investing!

If you were given $1000 to invest in 1926 and had to choose between investment strategy “A” that would grow to $6 million vs. investment strategy “B” that would end up with $700,000, which would you choose? The answer is simple; you would choose to grow your money to $6 million. Amazingly, the only difference between the two investment strategies is that the investment strategy A stayed invested through presidential elections, while investment strategy B went to cash. 

The message here is that successful investing requires patience and a willingness to leave our political and social biases at the door. Stay hyper-focused on the factors and characteristics associated with companies that can grow regardless of the economic, political, or social environment. INVEST LIKE ELECTIONS DON’T EXIST. As we close out Q3, the LPAM Tactical Opportunity strategy has advanced +70.07% in 2020. Over the same time period, the S&P 500 Price Index has advanced +4.09% while the DOW Jones Industrial index has declined -2.65%. All return dates are as of September 30, 2020.

In this week’s market update, we will review the impact of presidential elections on market returns, along with a review of the dominant portfolio themes we are invested in and how we expect the election to impact those investments. We will also break down our performance results and why active investing is critical in an environment where an increasing percentage of the underlying indices are composed of companies in a state of decline. Lastly, we will review investor positioning and assess the level of demand for portfolio protection to gain insight into investor psyche and discuss how we can use this data to effectively position client portfolios for durable, long term growth. 

The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.

Robert Reaburn

Robert Reaburn

Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management. He works with financial advisors building diverse financial portfolios that best empower their clients with a lifetime of financial security.

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