Discussing Wealth E&P’s strategic models and reviewing last week’s performance
October 18, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week.
It was a phenomenal week last week, with all the indices up strongly. However, it came with some interesting news: we almost had a government shutdown with the debt ceiling being hit. We have earnings season as well, but have a lot of questions, doubts, and concerns coming up. We also have a labor market, where employers are having a really hard time hiring quality people, or even people at all. Some businesses are really struggling to stay open or open for full hours.
With that, as I mentioned, all the indices were up anywhere from 1.5% to 2.25%. The NASDAQ was in the lead at 2.18%, and our Managed Growth portfolio was up about 2.25% for the week.
Today I want to talk about something a little bit different. We often discuss our tactical strategies or our All-Weather scoring, when to be aggressive or conservative, how we use artificial intelligence and relative strength, or all the other unique and interesting ways of managing money. I want to talk to you about our status quo: our growth portfolios.
First, our Equity Income portfolio is really just our “blue-chip” Dow Jones stocks; these are good quality, dividend-paying stocks that tend to stand the test of time. These stocks historically raise their dividend regularly, such as stocks like Home Depot, McDonald's, Lilly, Hershey's, or other companies that we know we can rely on over time. About 20% of the portfolio is a Dow Jones ETF (exchange traded fund), and we use that as ballast for the portfolio to balance things out. The other 80% is made up of 20 individual stocks; this is one of two portfolios that we use individual stocks in.
Our other growth portfolio is our Managed Growth portfolio, which is a little bit more aggressive. For years, we actually tried to beat the S&P 500; we found we were getting about the same as the S&P performance, despite all of the extra effort. So, instead, we decided to go to an index based on this. We use four ETFs that look like the S&P, the DOW, and the NASDAQ; our objective here is to meet the S&P 500, net of our fees. As you can see, we’re up a little bit over 20% for the year.
It’s been a great week and a great year, and we're going to try to keep the good news coming. Our All-Weather score is still 40 out of 40, which is great to see. If you have any other questions for us, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our Market Minute next week!
At Wealth Enhancement & Preservation, we are here to serve as your financial advisor and source of support in the Alpharetta, GA, Cartersville, GA, and Charleston, SC areas. Our advisors are dedicated to simplifying the complexities of the financial world and as your advocate, we strive to learn about your most valued goals and dreams. From individual investors to entrepreneurs, our services are designed for your success.