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October 2020 Investment Changes Summary


Recent Changes:

  • Rebalanced portfolios in seeking to take advantage of some profits from more appreciated categories (growth focused securities) and buying into lower valuation categories (value-oriented securities).
  • Increased international holdings for less correlated overall equity holdings.
  • Added infrastructure-based investment in large value sector as a tactical holding in light of US stimulus spending.

In addition to these shifts, we continue to favor high quality, technology savvy companies we believe are well positioned in the COVID-19 era and beyond.

We also want to address the elephant in the room (wait, bad election year analogy) or shall we say the most pressing issue on many investors’ minds:


Historically, stocks have generated positive returns under all political combinations in the White House, House of Representatives, and Senate, including Democratic and Republican sweeps. While this is a very important election, as they all are, as investors we want to keep any impact to the stock markets in perspective.

Strictly from a markets perspective, a potential Democratic sweep of the Senate and presidency possibly could bring higher corporate, individual, capital gains, and dividend tax rates that may be expected to translate into lower stock values, all else being equal. But it could also bring more fiscal spending, including an infrastructure package, and lower tariffs.

A victory by President Donald Trump may help keep taxes low, but it also may lead to escalating tensions with China, more tariffs, and further decoupling of the trade relationship between the two countries, all of which could potentially lead to bouts of market volatility.

For more in-depth answers to this question, read the following Weekly Market Commentaries in which LPL Research discuss the potential economic and market implications of wins by former Vice President Joe Biden and President Trump.


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. 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.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost. Investors should consider the tax consequences of moving positions more frequently.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Stock and mutual fund investing involves risk including loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk. 

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.

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BridgeQuest Wealth Strategies

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