Getting Older? Getting Wiser!

Getting older? Getting wiser!

We all hope that is true in our personal lives. But how do we translate that into our financial lives?

The older we get, the more truth there is to the famous lyrics in “September Song.” I haven’t got time for the waiting game.” For all you rockers out there, click here to hear this funky version by James Brown!

Oh, it’s a long, long while from May to December. But the days grow short when you reach September. When the autumn weather turns the leaves to flame. One hasn’t got time for the waiting game.

Those were the thoughts of the Waddell & Associates investment committee back in mid-August when we initiated a hedging strategy in all our client accounts that have exposure to the equity markets. And as our clients know, our money is invested in the same strategy as your money.

What changed in our portfolios?

We strategically reduced our exposure to global equities & replaced those positions with funds that have the potential to rise when equity markets are falling. Our first step was to reduce equity exposure by 10% in recognition of an aging bull market where risks can outweigh rewards. Limiting our upside a little in order to protect against the downside.

Time will tell if this is the only step or the beginning of a more defensive stance.

To quote my 1Q19 client letter: How much runway do we have left? 

Since 1926, three of the 11 bull markets have exceeded the length of this current bull market in duration, total return & annualized return. So, theoretically, there could be more runway ahead. But will the landing be soft or hard?

No matter where we are in the stock market cycle, or where you are in your personal life cycle, you can count on W&A as your wealth manager to strategize for the future with you & your family.

Author: Senior Vice President Senior Wealth StrategistPhyllis had been associated with W&A for a number of years before joining the firm, acting as a consultant to the company in its formative stage and subsequently as a client. Prior to joining W&A, Phyllis served as Vice President, Corporate Finance at Morgan Keegan & Company, Inc. She was involved in all aspects of its investment banking activities, including mergers and acquisitions, valuation studies, and initial public offerings. She earned registrations in NASD Series 7 (Registered Representative) and Series 63 (Blue Sky). Phyllis holds an MBA in Finance as well as M.Ed and BBA degrees from the University of Memphis. She is a Chartered Financial AnalystTM(CFA®) and a Certified Financial PlannerTM(CFP®) Licensee. She is past-Chairman and past-President of the Mid-South Society of the Financial Planning Association (FPA) and served on their Board of Directors from 1995 to 2000. During her term as President in 1998, the Mid- South Society of FPA was chosen the Outstanding Society of the Year by the national FPA organization. Her community volunteer activities include MIFA and the Women’s Foundation for a Greater Memphis, where she served as Treasurer, Chair of the Finance Committee and currently chairs the Investment Committee. She also serves on the Board of Governors of The Seaside Institute in Seaside, FL.

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