Broker Check

Investment Changes Summary 5/1/18


As you know, we follow a disciplined and diversified asset allocation process to building our portfolios. We believe in long-term investing, not short-term speculation.  With that said, we pay close attention to current environment and periodically make changes to fit investing goals.

We lean on our LPL Research team of 50+ professionals for ongoing asset allocation and fund screening. (Remember, LPL offers no proprietary products, which enables us to make objective decisions.)  Then, we utilize a secondary screening through Morningstar (a third-party investment research company) for another layer of due diligence.  We are, after all, geeks at heart.


We have made a few minor allocation and fund changes recently.  Here they are, plus the “why” behind the changes:

  • A tilt towards Value oriented equity funds versus Growth oriented equity funds. We expect financials to benefit from a more favorable interest rate environment in 2018 and believe valuations favor Value versus Growth at this time.
  • We believe that rising interest rates could continue to prove to be headwinds for bond funds, therefore we are mindful of duration and treasury exposure. We are also adding a bank loan fund to many of the portfolios which should be beneficial if interest rates continue to rise and they provide yield opportunity with a little less energy exposure than high yield.
  • As it relates to energy exposure, we are reducing that in our income-oriented portfolios by eliminating our MLP exposure. This is a category with high correlation to energy and high yield sector.
  • We continue to utilize our blend of passive ETF holdings (low cost, market efficient) and actively managed mutual funds (with a close eye on expense, historical risk/return performance, and current management) in our portfolios.


Remember, your investments (while critically important) are part of Your Larger Puzzle. The challenges we face in our world are real but the media is all about today’s shocking news and provides little, to no value to help you make wise investment decisions.  We have a planned approach for each of you so don’t hesitate to reach out and call us with any questions. 

Securities and Advisory Services provided by LPL Financial, member FINRA/SIPC. 

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors. Investing in mutual funds involves risk, including possible loss of principal.

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BridgeQuest Wealth Strategies

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