1st Quarter of 2021 and Future Outlook
by, Vanessa Wieliczko
In a recent webinar, I had the pleasure of sitting down with Emily Tillman, Equity Investment Director at Capital Group, as we took a moment to reflect on the first quarter of 2021 and to discuss possibilities for the future. After several years of strong momentum in a fairly limited corner of the market, we’ve seen broader market strength since the fall of 2020 with the outperformance of cyclicals, value stocks and small caps. With the vaccine rollout gaining steam, world economies appear to be turning the corner with strong economic growth on the horizon. While we are likely to see continued bouts of volatility, there is reason for long term optimism in stocks despite high equity valuations. Capital Group’s Outlook piece provides a high level overview of our dialogue as we discussed future opportunities – please click here for additional context. In recent months perceived inflation risk has become a key topic of conversation. While inflation has been subdued for years, the search for yield has long been a significant challenge. Our Investment Committee has diligently pursued a host of alternatives to supplement traditional fixed income including alternative lending strategies, income-producing real estate and higher-yielding dividend stocks that we expect to continue to deliver inflation-beating returns.
Given our outlook for the future, how should you invest? The response is simple and unchanged. The best recommendation we can provide is to set a long-term strategic allocation with the support of a trusted Advisor, and to stick with it unless or until your individual circumstances change. The financial markets are impacted by a multitude of related, but complexly intertwined factors which make short-term predictions often wildly inaccurate. 2020 provided countless examples in support of the old adage “don’t try to time the market”. We believe broad diversification is the right strategy – across asset classes, public and private, across regions and countries. Our Investment Committee spends a good deal of time discussing long-term capital market assumptions to inform our asset allocation for the future. As our expectations evolve, we may make small changes to the underlying investments of your portfolio. As always, we appreciate your confidence and support as we seek to build portfolios for the long run.
If you or someone you know would benefit from speaking with a HoyleCohen Advisor, we encourage you to reach out.
Kind Regards,
Vanessa H. Wieliczko, CFA, CAIA, CFP®
Chief Investment Officer, Principal
Office: 858.576.7300
Hosts:
Emily Tillman:
Equity Investment Director, Capital Group
Emily Tillman is an equity investment director at Capital Group. She has 17 years of industry experience and has been with Capital Group for eight years. Earlier in her career at Capital, Emily was an equity investment product manager. Prior to joining Capital, Emily worked as a manager of product and program marketing at Brandes Investment Partners. She holds a bachelor’s degree in sociology from the University of Chicago and is based in New York.
Vanessa Wieliczko, CFA, CAIA, CFP®:
Chief Investment Officer, HoyleCohen
Vanessa Wieliczko oversees the firm’s investment department and leads the Investment Committee. She joined HoyleCohen in 2008 and helped develop the firm’s CorePlus approach, a unique blend of traditional and alternative assets. Vanessa holds a Bachelor’s degree in business administration and management with a concentration in international finance from Boston University. Driven in pursuit of excellence, she obtained her Chartered Financial Analyst, Chartered Alternative Investment Analyst, and Certified Financial Planner designations all before turning 30. Active in the community, Vanessa serves on the board as President of the CFA Society San Diego, a group of more than 500 investment professionals.
The information above is for illustrative purposes only and nothing herein should be interpreted as investment advice. It should not be assumed that future performance of any specific investment or investment strategy will be profitable. All information contained herein is accurate to the best of our knowledge and is based on our reliance on materials provided directly by the investment manager. All investments carry the risk of loss, including the permanent loss of principal. Past performance is not a guarantee of future results.
