Markets Update and Strategies

for CIS Wealth Managed Fee-Based Portfolios

by Bob Barber

I hope today finds you well as we continue to deal with a year for the history books. From the coronavirus, to the riots and political upheaval, to the record fires in the west and a number of hurricanes, to what is still to come with the elections. I am so glad I have a solid foundation in Christ; one that provides a peace that surpasses understanding and a joy untethered to external circumstances.

For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind.
2 Timothy 1:7 KJV

Markets Update and Strategies for CIS Wealth Managed Fee-Based Portfolios

FIRST, LET’S LOOK AT THE UNCERTAINTIES FACING THE MARKETS AS I WRITE THIS:

1)  Tech sell-off after rallying to all time highs from March lows.

2)  Coronavirus Cases rising in Europe potentially causing another shutdown of parts of their economy. I do not believe this will happen in the United States again but people could become extremely cautious like they did back in March.

3)  Travel restrictions and the travel industry continue to struggle with no foreseeable end in sight.

4)  Supreme Court Judge Ruth Bader Ginsburg’s recent death so close to election time and how this could tie into election uncertainty.

5)  Any additional stimulus package will most likely be foregone as emphasis will now be put towards finding a Supreme Court Judge replacement.

6)  Continued uncertainty of elections and future fiscal policies of possibly a new administration.

 

OUR PAST AND ONGOING STRATEGY:

1)  We gradually lowered our technology exposure over the past few months to around 10% in our portfolios as this sector became extremely overvalued.

2)  As we lowered exposure to technology, we raised exposure to undervalued sectors, mainly energy and industrials, for a long term hold.

3)  We continue to be very cautious, as we proceed through the uncertainties listed above, especially for our Moderate, Conservative and Ultra Conservative portfolios. We will continue to monitor and make minor changes, as needed, including to our Growth and Aggressive Growth portfolios.

 

If you have any questions, please feel free to respond to this email or call our office during business hours at 830-609-6986.

 

Sincerely,
Bob Barber
Senior Wealth Advisor, Portfolio Manager, CEO