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FEE ONLY - Financial Planning and Wealth Management

Tel: (314) 961-1850

Historically, we have usually sent out our first of the year greetings by now, however, the “election rally” has continued into the new year which has kept us busy tracking and wondering:  When will this end?   Answer:  When it ends!   Reasoning:  No institution, or individual knows, including the so called “Market Gurus,” given their consistent horrendous forecasting record (think Brexit and Trump election market crash).  Therefore, we utilize disciplined investment models which at times will error on the conservative side; clients tend to stick with a more conservative allocation versus feeling the emotional pressure to sell out from aggressive investments during a market decline.  Pain of loss is exponentially greater than the euphoria of gains.

As you will recall, the 2016 stock market started off with a ‘thud”, dropping over 10% and was only up about 3% for the year on election day; in fact, going back even two years, the market (S&P 500 Index) was up about this same paltry 3%!    Post-election, the market went negative and then trended sharply positive, rising about 7% more by year end.   Bonds diverged, dropping about 3% over the same period.  In fact, bonds (Barclays Capital U.S. Aggregate Index) were flat for the year; thus, a balanced portfolio of ½ bonds and ½ stock was up about ~ ½ of the market (S&P 500 Index), which rose ~ +9.6% for the year, not including dividends.

Our 4 Investment Models - Conservative with Focus on Preservation of Principal, Conservative, Moderate and Moderate Plus – as a whole, performed well, capturing risk adjusted, proportional market gains with many portfolios garnering a larger portion of the last 2 months’ market surge.  Moreover, with the broader and more inclusive market increase this year, our models’ 12 month trailing returns represent an even larger share of stock gains, reflecting out performance during down market periods.   Of course, one must consider the timing of investing new money and the customization of each model for each client.  Sometimes, it can take a year or longer for new funds/cash/reallocations to reflect Model Investment Returns.   

Soon, we will be contacting you regarding your portfolio performance in 2016 and discuss how your existing Investment Model fits with your custom financial plan, including personal goals such as a secure retirement, paying for college or reaching financial independence.   Additionally, we will be sending out our annual Investment Policy Statement/Investment Model election forms for 2017.  

In the meantime, please let us know if we can assist you with any investment/financial planning questions or concerns. 

 

Steve Erken, CFP®
Principal
January 13, 2017

Market Performance

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Maxele Advisors may only transact business with Missouri and Illinois residents or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements

Contact Info

Maxele Advisors, LLC is conveniently located in Webster Groves, Missouri with ample FREE parking.

MAXELE ADVISORS, LLC
20 Allen Ave.
Suite 330
Webster Groves, MO 63119

Tel:  (314) 961-1850

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