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Integrated Wealth Management

Investing Newsletter – Jan 2013

  • In spite of all the unhappy headlines, stocks quietly rewarded patient investors with double digit gains.

  • Emotional control, acting in a slightly contrarian manner and maintaining a balanced approach to portfolio construction are three keys to successful investing.

  • The GMO forecast graph on page 3 of our newsletter predicts that stock returns will outpace bond returns over the next seven years. In general it also predicts that international stocks will out perform domestic stocks.

  • The “P/E 10” Ratio indicates that US stocks are currently at the higher end of their historical valuation range.

  • For the above reasons we continue to feel good about including international stocks in our client portfolios.

  • Higher future inflation remains a risk. We invest in a high quality first trust deed investment to help counteract this risk.

  • The inclusion of lower risk hybrid investments serves to reduce portfolio risk and volatility should equity markets disappoint.

Investing Newsletter - Jan 2013