Make Your Portfolio Great Again

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Make Your Portfolio Great Again

There is a long and inglorious tradition of petty US Presidential campaigns that dates to the first “modern” election in 1800, wherein Jefferson accused Adams of being a hermaphrodite and Adams responded by spreading rumors of Jefferson’s death. In these days of the one-second social media cycle, it’s hard to remember who said what last week. Vivid events and phrases are far easier recalled: thus Trump’s Mexican slurs and Clinton’s “secret” email server.

Politics are almost always a sidebar to the investment process, and our message to Advisors is don’t let your own or your clients’ political leanings impact your investment strategies. Our title today is tongue in cheek, but is based on our observations in the field from 2012, where Advisors and clients were terrified of the “fiscal cliff” and the possibility of four more years of political gridlock featuring an Obama presidency and a Republican Congress. Staying fully allocated to your investment plan always makes good sense, but we observed a lot of cash move to the sidelines in the second half of that year. It is why we say that the time to invest in our tactical allocation portfolios is “always”—we take the emotion and guesswork away. There’s a great case to be made that fears surrounding Presidential transitions are always overblown:

  • Global: The global landscape is constantly evolving and presents investors with a wide range of opportunities to invest abroad. Our portfolios tactically invest across developed and emerging market equities, bonds, and alternatives, as well as cash.

  • Active: While taking a long-term secular view, we tactically adjust our portfolios in response to changes in shorter-term business and credit cycles. This active management strategy allows us to respond to market conditions by adjusting allocations across asset classes.

  • Macro: Our top-down analysis emphasizes fundamental credit-driven research to identify trends that enable us to take advantage of investment opportunities around the globe.

  • Efficient: Our portfolios are constructed using liquid, low-cost ETFs. Our use of ETFs enables us to construct broadly diversified portfolios with only 10 to 15 holdings on average. This keeps trading costs down and makes our strategies highly tax efficient.

Want more details on how we work for Advisors? We invite you to join our Chairman & Chief Investment Officer John Forlines III on our upcoming webinar—appropriately titled “Make Your Portfolio Great Again: How to Position for a Wild Election Year.” Register here for the webinar on Tuesday, June 14th, at 3pm EDT.

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JFG Team
JAForlines, LLC
Investment Management

Past performance is no guarantee of future results. The material contained herein as well as any attachments is not an offer or solicitation for the purchase or sale of any financial instrument. It is presented only to provide information on investment strategies, opportunities and, on occasion, summary reviews on various portfolio performances. Returns can vary dramatically in separately managed accounts as such factors as point of entry, style range and varying execution costs at different broker/dealers can play a role. The material contains the current opinions of the author, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Forecasts are inherently limited and should not be relied upon as an indicator of future results. There is no guarantee that these investment strategies will work under all market conditions, and each advisor should evaluate their ability to invest client funds for the long-term, especially during periods of downturn in the market.

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JAForlines has been acquired by and operates through W.E. Donoghue & Co., LLC.
W.E. Donoghue is a registered investment adviser with United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940.

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W.E. Donoghue & Co., LLC
Tel: (516) 609-3370