Sell-off Creates Opportunity for Portfolio Check-up

November 21, 2018

The sell-off pre-Thanksgiving has certainly created an opportunity for portfolio checkup.

 

Hello, my name is Paul Carroll. I'm the CEO and founder of Efficient Wealth Management.

 

Until recently, as we've talked about before, the FAANGSs have defied gravity and they've done this as other assets have stumbled leading to some frustrating tracking error. The S&P 500 has been pulled up by the FAANGs. The rest of markets, global and domestic, have fallen behind.

 

That tracking error appears to be ending. Fortunately, for the last year or so, we've been persistently trying to de-risk clients, especially those with concentrated holdings.

 

Now, with the market correction definitely in play and the price of oil tumbling, we're beginning to see a certain amount of normalization of asset valuations, especially international.

 

This is a wonderful opportunity, finally, to get some good rebalancing in, to take some tax losses. We call this tax harvesting. To optimize the tax location of portfolios, and to basically position ourselves to ride out the storm and be well positioned to profit from the subsequent recovery.

 

So far this year, the market has not given us a whole lot to be thankful for, but it's going to and we are thankful for all of the opportunities we have in each and every one of our clients. We wish you a wonderful Thanksgiving and the best of success.

 

Videos, Markets

Subscribe to Email Updates

Connect with Us

The 100K Commitment

Recent Posts