The last two years have been a very tough time for our portfolios as we continue to believe that a value-centric theme is the best long term investment strategy. Historically that has been the case. It has not been the case for the last two years.
Since I personally use the same funds that we recommend to our clients, my personal performance has also been less than satisfying for the past two years. I am disappointed, as I am sure you are.
However, the recent negative start to the market in the new year has been encouraging to me. The funds have held up better than the overall market, which is what we had anticipated. Although a two week downswing is not long enough to judge success; it is encouraging nonetheless.
We continue to keep a very close eye on each of the funds. Aaron maintains contact with the fund managers and analysts monthly through phone calls, emails, reviewing reports, etc. NWFS also has a monthly Investment Committee meeting. We are diligently trying to help you grow your money for the long term.
Our philosophy of having an appropriate amount in money market and bonds to provide for your cash flow needs for the next five to seven years means that we should not panic and sell equities during any downswing in the market. Our Equity funds have historically been more resilient during negative time periods, and our investment philosophy was put in place with a seven to ten year time horizon, not for one or two years.
We would encourage you to call or email us with your concerns during this difficult time period.
Bill Reno CFP®