Happy New Year to every one of our valued clients and friends! We hope that 2019 is a terrific year for you and your family! At Brayshaw Financial Group we have a passion for helping our clients find success. Despite the challenges of the market this past year, we feel we have done an excellent job helping our clients, step by step. Over the years, our clients have looked to us to provide sound financial advice and 2018 was no exception.
Let’s take a look back….
As most of you are aware, this past year in the market was especially volatile. It was, in fact, the worst year for stocks since 2008. The Dow Jones Industrial Average (DJIA) was down 5.63%, the S&P 500 Index was down 6.24%. and the Nasdaq Composite Index was off 3.88%. While there were a lot of negatives in 2018, there were also a lot of positives. The S&P 500 reached a record high on September 20th and the Dow closed at a record high on October 3rd.
Despite some records being set, 2018 will be remembered for its extreme volatility. Did you know that the Dow has swung 1,000 points in a single session only 8 times in history? Five of those swings took place in 2018! This volatility was being driven by signs of a global economic shutdown, interest rate hikes by the Fed, political dysfunction, fears of inflation and increased government regulation of the technology sector.
In times like these, it’s easy to get nervous when you have money invested in the markets. At Brayshaw Financial Group, we have several different strategies we employ to help mitigate risk. Although we advise lower cost passive strategies, we also implement several tactical strategies for clients needing a more “hands-on” and active approach to managing their money. It is our belief that tactically managed assets will greatly help to preserve capital and diminish losses during volatile markets.
In November 2018, most of our tactical portfolios were moved to cash and cash equivalents. With less than 10% of our assets exposed to the short-term bond market space, the impact felt from negative markets to our client’s tactical allocations was minimal.
Historically since 1950, no other month has posted a higher average return than December. In fact, over the last 100 years, the Dow has averaged a gain of 1.55%, with gains 74% of the time. *
December 2018 was vastly different. The Dow dropped 8.66%, the S&P 500 plummeted by 9.18%, and the NASDAQ was down 9.48%.
Our tactical managers helped our clients tremendously, as their skillful portfolio decisions helped our clients avoid this dangerous time in the market.
In addition to the tactical money management portfolios, we also use other approaches to help minimize risk in our client’s broader investment. Using annuities and insurance linked with income riders, we have successfully helped to protect our client’s current and future incomes. These products, when appropriately paired with other investments, have given our clients a level of downside protection through volatile markets.
If you are currently working with us and haven’t recently taken the opportunity to review your portfolio, we’d love nothing more than to sit down with you, review your accounts and to see how we can be of more help to you going forward.
If you do not currently have a relationship with our firm, then feel free to give us a call. We offer a no-cost, no obligation consultation that will help you better understand the services we provide. How we can assist you defining and ultimately reaching your financial goals.
While there is no doubt that 2018 was a volatile year, we firmly believe that 2019 will be no different. Let us help put a plan in place. Take the next step with us!
*Returns featured can be found at investing.com