Category: Portfolios

Talking points – Keep and eye on the long term

Hi,

Thought I would share some observations regarding our portfolios and strategy given the current sell off.  

 

As the coronavirus spreads, investors have sharply sold stocks, anticipating a slowdown in economic growth and companies’ earnings.  The S&P 500 index has been hammered in the past week and is down -13% since its peak.  However, it is important to keep an eye on the long term.  Being invested over the past 11 years has reaped huge rewards.  Here are returns for some key indexes:

 

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Asset Allocation changes – 2/25/19

Hi,

Here is the summary of the changes to our portfolios from this morning’s meeting:

Reduce EAFE

  • Europe’s growth is slowing especially Germany’s
  • Country specific issues – Brexix and Italy
  • Concerns on trade – autos

Extend duration on bonds

  • Federal Reserve on hold after 9 rate increases
  • Inflation in check
  • Near end of cycle

Increase allocation to Emerging Market stocks

  • China enacting some stimulus
  • China taken steps to shore up banking system and confidence
  • External debts OK

Increase allocation to US stocks

  • Improved valuations
  • US consumption source of global demand
  • Expect any slowdown to be relatively mild

Here are the slides from this morning’s discussion: 022519 allocation changes RM

Crestwood’s ESG initiative

On 5/8/18, Crestwood unveiled its ESG integration initiative.  For individual stocks, ESG ratings will help inform our evaluation of management.  To derive ESG rankings, we have combined the services of RepRisk (news-based) with Sustainalytics (disclosure-based).  We believe this process will help reduce risk, improve performance and help differentiate Crestwood’s investments.  Please see below presentation:

ESG presentation

Thanks to the Research Team for all their work!

John