Broker Check

RWM 2020 4th Quarter Commentary & Update

October 27, 2020
  • Asset Management
    • Market returns are now positive for the year, but, with dramatic differences between sectors and different types of individual securities.
    • We suspect the stock market will go through periods of volatility, (especially with election results yet to be determined as we are writing this letter) with lower than normal real growth expectations.
    • Given the low level of interest rates, it should still be worthwhile to underweight fixed income relative to stocks for longer term investment capital.
    • In stocks, we will generally overweight international relative to US as well as value relative to growth, both due to current levels market valuations.
  • Financial Planning
    • Given the lower level of expected investment returns, we advise accumulators to increase their level of saving and distributors to decrease their distribution rate to increase the likelihood of financial success over the next financial cycle. See our article Why 3% is the new 4% at the following link on our website.
    • Since income taxes are the largest expense for many clients and interest rates may go up in the near future, we have published two new articles
      • Your Tax Return...The Key To After-tax Wealth
      • Tax loss harvesting…Why?...How?
      • What’s new at Renaissance Wealth Management BN, LLC.?
        • We have been back in the office since June and enjoy the opportunity to host some of our children and grandchildren as they go through distant learning opportunities from our office.
        • We are working on updating our data base and workflow procedures to enhance our ability to give you outstanding service.
    • Our people
      • Jeff Secord and Carol are still binge-watching many good TV series including ”The Restaurant”, “Liar” and “The Capture” among others . Jeff is reading Doris Kearns Kearns Goodwin’s Leadership in Turbulent Times. Carol is getting caught up on all needlepoint projects. We are both enjoying a winning Bears season (so far!)
      • Scott Davis, Molly, and their three kids have been enjoying fall and the return of football. Their oldest daughter, Annabelle, started Kindergarten this fall and recently began attending classes in person.
      • Hilary Secord and family have been staying busy with extracurricular activities such as dance, gymnastics, soccer, and softball. We have also welcomed my oldest daughter, Peyton, to our office for remote learning.
      • Julia Mueller, our current intern, is a human resources major with a minor in financial planning. Julia has been thoroughly enjoying learning about financial planning and helping clients navigate complex financial and investment decisions. She expects to graduate in May and pursue a career in financial planning.
      • Sources
        • Guide to the Markets. JP Morgan. October 19, 2020


The views stated in this commentary are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein.  Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.  Past performance does not guarantee future results. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing. All investing involves risk, including the possible loss of principal.  There is no assurance that any investment strategy will be successful.