Litman Gregory Asset Management was recently recognized as a top-ranked registered investment advisor by San Francisco Business Times, appearing on their list of the 50 Largest Bay Area Wealth Management Firms.
In the accompanying What Bay Area Wealth Managers are Telling their Richest Clientsarticle, Litman Gregory senior wealth advisor Gretchen Hollstein was quoted with her take on how the wealth management industry is changing. Here’s what Gretchen had to say when interviewed earlier in 2018:
What do you think is the biggest story in your industry right now?
“The potential surprise hit that investors will feel when they realize that this is no longer their grandparents’ ‘stock and bond’ market.
In other words, many investors have become accustomed to a bull market in stocks and low interest rates, so they could be woefully unprepared for a shift in the investment landscape that would see stock and/or bond markets go down in value, or at least experience a leadership shift to other asset classes or other global investment markets.
As a related point, with a major generational shift in the responsibility for retirement investment management from employers to employees (through their 401k plans), many investors’ portfolios lack sufficient risk management and diversification due to the tendency of 401k plan participants to select investments that have recently performed well vs. their other choices. This could set these investors up for failure.”
Read the full article on San Francisco Business Times.
Our Thoughts on the Silicon Valley Bank Failure
Recent problems in the banking industry have increased uncertainty in the financial markets. On behalf of our clients, we have taken a close look at the situation and assessed the potential consequences. In this post we summarize the circumstances at Silicon Valley Bank that led to its failure, describe the broader implications, and review what we see as minimal impact for our clients and their portfolios.
Insight Newsletter—Winter 2023
Our Insight Newsletter is now available. Included in this edition: Investment Commentary Research Update: Trend Following with Managed Futures Tax Planning Opportunities from
Research Update: Trend Following with Managed Futures
The evidence of the long-term value that trend-following managed futures bring to a balanced portfolio is compelling, even though there are shorter periods where sharp see-saw patterns can lead to disappointing returns. However, in a year like 2022 that saw significant declines for both stocks and bonds, managed futures experienced large positive gains and were one of the only asset classes to provide meaningful downside protection. This research update serves to address many of the questions that we receive about this interesting investment strategy.