CTWM Investment Committee: Portfolio Update

The end of the first quarter of 2019 has brought sunshine, baseball, and one of the best quarters US stocks have seen since the 90’s. While the sharp recovery from last year’s market declines has been a welcomed move, we are mindful that we have just celebrated the 10-year anniversary of the current bull market and the U.S. economy appears to be softening. The Investment Committee has decided to reduce our overweight to small-cap stocks by reallocating to large companies focused on dividend growth. We had added to small caps last summer to capitalize on an opportunity created by tax reform and trade policy, and it appears those themes have played out. As the chart below indicates, a focus on dividend payers (the blue bar) has historically limited the upside slightly in a positive market but dramatically reduced the downside of a bear market. As always, feel free to contact us with any questions or concerns. 

A chart showing historical average returns of dividend categories from 12/31/1978 - 12/31/2017

The foregoing content reflects the opinions of Connecticut Wealth Management, LLC and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.