Investment Committee Update: Intense Market Volatility

Our Investment Committee has been meeting daily to strategize on what actions to take given the intense market volatility we have experienced over the last month.  To date, we have purposefully not rebalanced back to target as an additional risk control measure.  We acknowledge that it is difficult to look forward with so much uncertainty and so many currently unanswered questions, but as long-term investors, it’s important that we maintain a clear vision of our financial goals and our plan for getting there. Tax efficiency has always been a core tenet of our investment philosophy, so the initial centralized action we have approved will be a series of trades to recognize tax losses in portfolios.

As a reminder, this means that we will sell securities in taxable accounts to capture losses and replace that holding with something very similar to maintain your position in the market.  These losses can be used to offset future gains, whether realized later this year or in subsequent years. We will be executing these trades across our small-cap stock, mid-cap stock, and international stock holdings.

Expect another update from us shortly on how we are positioning portfolios to take full advantage of the inevitable market recovery. We expect this week will bring a host of distressing (but expected) economic data points that will undoubtedly dominate headlines and will further stir market volatility. We will continue to stay connected to and transparent with you during these challenging times, but please do not hesitate to reach out with any questions.

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.