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Market & Portfolio Review: 08-05-20

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Investing with Conviction

While investing with conviction can be difficult during a time of great uncertainty, those investors that deploy an active approach to investing can use the uncertainty to their long term advantage. The greatest returns are often realized when being invested feels the most uncomfortable, while investors are often punished during times of great complacency. This happens because long term macro trends are often far more powerful than many short-term factors that often distract investors, causing them to discard the stock of companies that are actually improving despite the volatile share price.

Utilizing an active investment approach that coaches investors on what they own and why they own it can help shield us from the devastating distractions of the 24/7 news cycle. That is what we seek to provide to our investors.

As we close the first week of August, the LPAM Tactical Opportunity has advanced 56.44% in 2020 vs. +3.00% for the S&P 500 and a decline of 4.68% for the Dow Jones Industrial Average.

Over the past week, we have seen a re-acceleration in the share prices of companies that are executing on long term growth and don’t need a strong economy to deliver substantial earnings growth to their investors. In this week’s portfolio review, we will take a look at what falling stock correlations mean for investors and the types of strategies clients should consider to take advantage of this trend. Second, we are going to review investor positioning across the NYSE, compare that to the spot and future volatility market, and what that is telling us about the likely path of stock prices into the second half of the year. Lastly, as we always do, we will review the health of the credit markets to ensure that the economic lifeline of the U.S. economy remains clear of blockages and that credit is flowing at an affordable price to those seeking capital.

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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