The Boring Path to Investment Success
One of the characteristics that makes investing so difficult is that its easy to get distracted. The reality is that if we implement a boring approach that focuses on high quality companies with a long and durable pathway to cash flow and market share growth, over time, investors will likely be rewarded vs. investors that are constantly caught chasing the hyped up next shiny object that often leave investors regretting their decisions.
In this week’s edition of the LifePro Asset Management Market & Portfolio Review, our head of Wealth Management, Robert Reaburn, will review recent 1-2 day rotation away from high quality, secular growth stocks toward highly cyclical businesses that have low margins, high levels of debt and are highly exposed to negative economic shocks. We will also be taking a look at high frequency data to assess how U.S. consumers are behaving three months into the COVID crises and how we can use that data to optimize portfolio construction.
Additionally, we will be taking a close look at investor positioning and whether the recent rally in stock prices are making investors more optimistic or whether the plague of pessimism continues to dominate the psyche of traders across the world. Lastly, we will take a quick look at the credit markets to assess the impact recent Federal Reserve programs on overall credit costs for private companies in the U.S.
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.