Winding Down the Year

We are currently on track to end 2019 as another significant year for the markets. Year-to-date, most asset classes have performed well. This trend would indicate that we are preparing to enter our 11th year in a bull market environment. However, this does not necessarily mean that we are anticipating a repeat of 2019 market conditions for 2020. Instead, we are preparing for increased volatility. With stocks at all-time highs and the 2020 elections, we believe there is a good reason to think that 2020 will be a tougher year.

At Collins Investment Group, we are always considering the potential for downside as we manage your portfolios, bull market or otherwise. Our goal is to manage to your specific investment objective, or risk-tolerance which we can help you determine through discussions about things like your investment experience, time-horizon, financial goals, and life-events.

Investors will typically fall within one of nine investment objective categories, which we have illustrated [left]. Also shown is the average historical trends in average return and downside risk per investment objective allocation.* We want to ensure that you are comfortable with your investments and that we continue to manage your portfolios to your needs. We will always verify that we are still properly investing for your objectives in our reviews, but if there is something that you believe may impact your investment objective that we haven’t had a chance to discuss, please let us know so that we can arrange an in-depth conversation.

Interest rates have been decreasing, and we are expecting rates to remain low for the foreseeable future. With that said, global rates are still generally lower than the US, some even negative, which we believe will continue to encourage new foreign investment into the US markets. We are total return wealth managers. We seek out high quality securities/funds that indicate an ability to sustain and/or grow their dividends or interest payments over time. This means that in a year with market volatility, as an election year may present, investors will continue to get paid to ride out the ebbs and flows of the market. We also encourage dollar cost averaging during these times as well to help capitalize on potential price fluctuation.

In our search for yield, it is important to remember that finding the highest yield is not always “better”. Every investment has an inherent level of risk, and knowing the level of risk that is right for you (investment objective) is important. Unusually high yields could be an indication that the investor is taking more risk by investing in a company that may be struggling, have a less sustainable business model, or many other factors. Some investors may be suitable for more risk than others, but placing emphasis on your total return can help us find the right balance of risk and return for your portfolios.

As always, please call us with any questions that you may have and we will be happy to answer them on the call or arrange a time to have a full review.

Noteworthy Announcements

After 14 years with Collins Investment Group, Sally Mullen has announced her retirement at the end of the year. She is such an amazing person and integral part of our team, we know clients and associates alike are going to miss her presence greatly. It is a well deserved retirement and we wish her all the best in this next stage of life. Thank you for all you’ve done!

As one chapter ends, a new begins as we introduce Meredith Wade, CPRC®, the newest member of our team. Meredith joins our team as a Client Services Specialist with several years of industry experience and a personality and work ethic that will fit right in. Welcome to the team!

In more associate news, we are proud to inform you that Andrew Villafranca, Portfolio Administrator, after spending much of his 2019 studying, has passed his CFP® exam. We are all very happy to see that his hard work paid off.

Lastly, for those clients that are in the area, we hope you can join us and welcome Meredith and celebrate Sally’s retirement at our Annual Holiday Toys for Tots, toy drive on December 13th between 9:00AM and 1:00PM.

*An Efficient Frontier represents hypothetical portfolios that would have provided the optimal rate of return attainable for any determined level of risk. In theory, the closer your portfolio allocation comes to the efficient frontier, the more return potential you receive for the amount of risk you assume the Strategic Allocations represent “efficient portfolio” allocations approximating points on the efficient frontier.