Wealth Factory Trade Update

Wealth Factory Trade Update

Your personal financial goals remain paramount to our investment advice.  Our investment approach is designed to provide a thoughtful, disciplined framework for pursuing your financial objectives.  Wealth Factory strategies are constructed with:

• Collaborative research – Our team members collaborate with leading economists and research analysts on our research process, sharing and debating ideas.  This collaboration generates deeper insights that influence our strategies and security selection.
• Diverse perspectives – Most portfolios only have one or two fund families.  Wealth Factory strategies are designed to employ multiple ETF/fund managers, each of whom invests part of the portfolio in their strongest convictions.  Combining these diverse investment approaches into a single portfolio helps us pursue more consistent results with potentially less volatility.  
• Long-term view – Our team invests with a forward-looking view of the economy, aligning our goals with the interests of our clients.  We construct our strategies based on where we think the market is going, not where it’s been.   

We invite you to read about changes being made to a portfolio you currently own and the changes we are making on your behalf.

Wealth Factory Strategies

Our review process combines monitoring of recent performance and an informed analysis of changing economic and market conditions and commentaries from highly experienced and respected sources.   

Here is a recent excerpt for your review:

Markets have ups and downs. There are times when the headlines point opposite to what stocks deliver. The economy is resilient. It is helped by strong household balance sheets and low pandemic-era fixed rate mortgages. The AI buildout creates opportunities beyond the builders of the technology — known as hyperscalers — and supports demand for semiconductors, memory, and infrastructure equipment. 

There are real risks to watch. For markets, the biggest risk might be rising interest rates. Higher Treasury yields raise borrowing costs and can pressure equity valuations. This increases the odds of short-term pullbacks and limits upside potential. 

High oil prices, solid economic growth, U.S. and European budget pressures, and corporate debt create upward pressure on rates that may not abate soon. Before you sell off your stocks, remember that 5% Treasury yields were normal before the Global Financial Crisis of 2008. While markets tend to handle political gridlock well, election-related uncertainty could spark bouts of volatility. 

There are genuine uncertainties, but also a solid foundation in corporate profitability and steady economic growth that points to staying the course.

We are taking advantage of actively managed funds and ETFs, making tactical changes to the portfolios primarily through the adjustment of underlying holdings and percentages.  

Within Equities:

• Increase quality and diversification of our dividend paying stock holdings by adding Capital Group Dividend Value, Federated Enhanced Income and Putnam Focused Large Value ETFs
• Broaden the diversification by adding investments in AI infrastructure and Global Patent Leaders with PACER and emerging markets with Franklin Templeton ETFs.

Within Fixed Income:

• With an eye on rising interest rates and credit uncertainty, we shifted from High Yield Bonds to a combination of short-term Treasury Bills and shorter duration inflation protection bonds.  We added a tactical go-anywhere approach from PIMCO, a global leader in fixed income.

Within Alternatives:

• Maintained our positions in Gold and a “Market-Neutral” ETF with Blackrock, which is designed to generate returns regardless of market direction. This approach may reduce market risk and potentially provide steadier performance.

These tactical changes will further diversify the fixed income and equity portions of the portfolio for what’s ahead.  We continue to believe a well-diversified portfolio that spreads your money across different asset classes, industries, company sizes, and geographic regions may be one of the best ways to reduce risk in an effort to smooth out volatility.

We would love to hear from you with questions or to discuss the changes in more detail.  Please call our office at 888-347-2080 or email us at team@twfplan.com.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

 All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

 All investing involves risk including loss of principal. No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.​

ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF's net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.​ 

Treasury inflation-protected securities (TIPS) help eliminate inflation risk to your portfolio as the principal is adjusted semiannually for inflation based on the Consumer Price Index – while providing a real rate of return guaranteed by the U.S. Government. 

Content in this material is intended for current clients only and is for general information only and not intended to provide specific advice or recommendations for any individual.