How to Take Advantage of Market Meltdowns
If you have a well-diversified global equity portfolio that has been fully invested all year, it may be down ~4% YTD (down ~ 10% since the January high).
However, if your portfolio is overweight the U.S., as our clients’ portfolios are, you’re likely in a better overall position; U.S. large caps are up ~1% YTD (down ~7% since the September high).
As the stock market volatility persists, you may be wondering if there’s anything else you could be doing to improve your equity portfolio returns.
If your equity exposure is through managers who aim to outperform the market over time, your returns may be lower than those above. According to CNBC, an astonishingly high number of equity managers underperform over long periods of time, and thus far, that unfortunate trend continues in 2018. Since these managers generally charge a premium, you may be overpaying to underperform.
Additionally, systematically taking advantage of potential tax loss harvesting opportunities throughout the year can help mitigate some of the negative effects of market volatility. At True Wealth Advisory Group, our client portfolios that include tax loss harvesting strategies are up an extra ~1-2% this year. We believe smart, efficient, professional tax loss harvesting can help turn market meltdown lemons into lemonade.
To learn more about how our practice’s investment strategies can help support long-term portfolio performance, I invite you to visit our website, or reach out to our team directly at 888.848.3260 or email@example.com. We would love the opportunity to chat with you or someone you know and explore how our team can potentially be of service.
True Wealth Advisory Group is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.
This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.
All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.
This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.