- What investments do you own that have performed strongly from 3/8/2023 to 3/17/2023 as banking fears have impacted financial markets?
- Is the high volatility and poor performance of your portfolio creating possible cognitive misjudgment errors or are you looking for possible opportunities due to your portfolio’s resiliency?
- As you worry about your deposits in the bank, are you also worried about your portfolio?
Essential Partners understands that the rate of change in economic GROWTH and INFLATION vs. expectations is a core driver of changes in financial markets. We have written about this dynamic in the past as noted by this article: Core Four Economic Environments: Portfolios Lack True Diversification.
The mini-crisis caused by bank failures over the past week and a half provides yet another compelling example of the benefits of diversifying to the Core Four Economic Environments.
Since the market close on 3/7/2023, the following price changes have occurred (in order of returns):
- Gold (ETF: PHYS): +9.4%
- Long-Term U.S. Treasury Bonds (ETF: SPTL): +5.1%
- Short-Term U.S. Treasury Bonds (ETF: VGSH): +2.2%
- Long-Term U.S. Treasury Inflation Protected Bonds (ETF: LTPZ): +1.2%
- Commodities (ETF: CMDY): -2.8%
- Global Stocks (ETF: VT): -2.8%
Essential Partners designs bespoke portfolios for our client partners that are built upon the Core Four foundational philosophy and then customized to incorporate PERSONAL and TACTICAL factors.
Investment advisory services offered through Essential Partners, an SEC registered investment advisor. The information contained herein should not be construed as personalized investment advice. Past performance is no guarantee of future results. Investing in financial markets involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.