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Market & Portfolio Review: 12-18-20

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Embracing Growth

As 2020 ends, it’s important to look back at what worked and, just as important, what DIDNT work over the last 12 months. Despite global pandemics, recessions, and political instability, fantastic businesses continued to grow and make money and delivered value to their investors. On the other side of the coin, investing based on headlines, rumors, conspiracies, and FEAR was the WORST investment strategy in 2020, securing losses and decreasing investor wealth. The big lesson here is that we must approach investing with a data-driven approach that shuns fear, discards our political biases, and focuses on GROWING YOUR WEALTH. 

For investors with outsized gains in 2020, now is the time to use compounding to your advantage, which allows you to accumulate more dollars with less return. Entering 2021, our data suggests that we are in the early innings to the business cycle, which has historically led to above-average returns. For us, this means that we want to invest client money in companies that are set to benefit from years of durable growth and are disruptive leaders in their respective sectors. 

In this week’s market update, we will compare the current 2020 recovery to the recoveries of 1982 and 2009, discuss the similarities and differences, and what it means for your money. Second, we will review the stock market set up for the second half of December and then wrap it up with a review of investor positioning data and what that is telling us about the factors driving stock market performance.

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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