Wealth Management Blog | WrapManager (39)

JP Morgan - Q1 2015 Earnings Recap

Posted by WrapManager's Investment Policy Committee

June 2, 2015

JP Morgan's First Quarter Market Bulletin for 2015 provides a recap of the earnings season.

"In Brief

• We estimate that first quarter 2015 earnings-per-share (EPS) declined by 5.0% on a year-over-year (y/y) basis. Similar to the prior quarter, this was primarily due to lower oil prices and the stronger U.S. dollar (USD).
• Excluding the energy sector, S&P 500 EPS grew by 9.1%, in-line with historical trends. We also estimate that the stronger U.S. dollar resulted in an average EPS decline of 5% for the most multinational non-energy companies.

Geneva Advisors - Q1 2015 Market Perspective

May 27, 2015

Geneva Advisors provides their First Quarter Perspectives on the market. "The relative strength of the U.S. dollar has been an important force for the market in recent periods. Stock prices are near record highs and valuations of many companies are extended. A disciplined investment process, an active investment approach and a long‐term focus will continue to be critical to achieving investment objectives. [+] Read More

Brookmont - Reducing Exposure to Mid-Cap Stocks

May 20, 2015

Brookmont has made the decision to reduce mid-cap stock exposure for their Dividend Equity Strategy. "Dating back to March 2009, the Brookmont Dividend Equity Strategy has always maintained a 30%- 35% weighting in small and mid-cap stocks. It is an area of the market that includes attractive dividend-paying stocks that are often overlooked by our peers. Knowing that mid-cap stocks often lead a market recovery, we rebalanced the portfolio in February 2009 and were active buyers in mid-cap names such as Packaging Corporation of America, Tupperware, Hubbell, Heinz, and Lubrizol (the latter two stocks were eventually acquired by Warren Buffett). From 2009 through 2013, it was not uncommon for our mid-cap holdings to produce one-year returns as high as 115%. Knowing that these type of gains are not common, we rebalanced the portfolio on several occasions to realize these significant profits. [+] Read More

Tax Season's Over. Time to Focus on Estate Planning

May 13, 2015

Filing taxes often puts our financial lives under a microscope, and that’s a good thing – we take stock of where we stand financially and we can review strategic opportunities for how we take income, how we spend, and how we invest. With all of this information already out on the table, a sound next step is to shift focus to your estate plan. Tax and estate laws are constantly changing, so the planning process can be complex and you should enroll the help of professionals in each area as you get started. But there are also a few core elements of planning that have been fairly constant over the years, and we’ve assembled them into an estate planning checklist for you as a basic guide. [+] Read More

Adding an Asset to Your Portfolio - Doug's Quiz Corner

May 13, 2015

Quizmaster, Doug Hutchinson, has come up with a great quiz that illustrates how adding an asset with higher volatility can actually lower overall volatility of a portfolio. Let’s see what the math has to say. Good luck! Consider this scenario: Your friend Mary has a portfolio consisting of one asset, Asset A. She is considering adding a second asset to the portfolio and her new portfolio would be weighted as 50% Asset A and 50% of the new asset. She would like the new two asset portfolio to have the lowest risk (as measured by standard deviation) possible, given the other options that she is considering adding to her portfolio: Asset B and Asset C. [+] Read More

Will International Outperform US Stocks in 2015? - Cambiar Investors

May 6, 2015

Cambiar's commentary highlights a cautious view on energy and reviews the strategy's international approach following Japan's surge in Q1. [+] Read More

Federated Investors - Q1 2015 Managed Account Commentary

April 29, 2015

In their Q1 2015 International Strategic Value Dividend ADR Commentary, dividend money manger, Federated Investors, discusses their diversification strategy which can help reduce portfolio volatility. "In order to pursue its objectives of dividend yield, dividend growth and lower downside risk, the portfolio invests in high-yielding, high-quality stocks, many of which are found within mature markets and sectors that typically exhibit a low level of cyclicality." [+] Read More

Slow but Steady - Eagle Asset Management Whitepaper

April 22, 2015

Our focus isn’t on emphasizing just whether a company is good or bad but how people are reacting to it. How the sentiment changes. Fundamentals matter but how they interact with human behavior is what creates investing opportunities. Our view is: Stay in the middle of the boat, ignore the headlines and do well in some companies that people may not expect: healthcare in emerging markets or U.S. grocery stores, for example. Read more market perspectives in Eagle Asset Management's insightful whitepaper. [+] Read More

Eagle Asset Management Market Perspective

April 15, 2015

"The Fed may have axed the word patience from its commentary but I’m beginning to wonder if extreme patience may be called for." Eagle Asset Management's, Richard Skeppstrom, weighs in on the Federal Reserve's comments following the last Federal Open Market Committee meeting. [+] Read More

Volatility and Wealth Accumulation - Doug's Quiz Corner

April 15, 2015

Quizmaster, Doug Hutchinson, has come up with another great quiz for us regarding how volatility can affect wealth accumulation. Let’s see what the math has to say. [+] Read More