We normally write a nice long quarterly update, but for the mid-quarter update, we wanted it to be short and sweet, with mostly some numbers on how markets are doing (tables below). But numbers, without a bit of commentary, are no fun.

So, tongue in cheek…here is the start of our update…

Our mid-quarter update notes that as we navigate through the current quarter, the narrative of growth technology's dominance in the market continues with vigor. This period has further solidified the tech sector's position as the cornerstone, the foundation, the mortar, and every other part of what makes for a good investment portfolio. This underscores the transformative impact of tech companies on both the economy and the investment landscape….

Yawn, I was bored with my writing by this point I decided to stop…and laugh a little…

So why would I add to the already huge amount of coverage about the return on tech stocks? Because I have a different take…sarcasm, caution, optimism.

Sarcasm: I actually found this recent post on LinkedIn, from Joshua Brown from Ritholtz Wealth Management, hilarious (do not worry, I have noted the sarcasm): "Hey kids, the Holy Grail of Investing is actually market-cap weighted index funds and lose your brokerage password. There, I just saved you twenty years of bullsh!t and aggravation. When you turn 45, call us and we’ll show you all the stuff that keeps you rich."[i]

Caution: This reminded me of the profound (over) simplicity at the heart of recent successful investing.

This advice distills the essence of investment wisdom or should I say frustration or both. It sarcastically supports prioritizing long-term, narrow-market exposure for tech/growth while at the same time clearly tossing in the towel on all things risk management, portfolio management, diversification, etc. In essence, it takes Members’ Wealth mantra, Preserve. Grow. Endure. Evolve and crosses out Preserve Endure and Evolve. Here is our new image:

I joke.

In addition, I did also recently take insult to an overheard conversation at a conference I was at, where I heard someone say, “Wealth Management firms are where money goes to die.” Essentially implying:

Surely this person was growth oriented. All well and good. But perhaps short-sighted and misguided.

Optimism: So, joking aside, the year is off to a positive start for stocks (S&P 500) and negative for bonds (Bloomberg US Aggregate Bond Index) as highlighted by the following tables.

While tempting to go all in on what is working the best, we urge caution. However, we also remain optimistic that most other forms of non-tech investing remain viable investment candidates for client portfolio depending on their specific circumstances. For those investors that seek to learn how being mindful in correctly weighting each of the four attributes, preserve, grow, endure, evolve for your family, please reach out to learn more about how Members’ Wealth can support your goals. For everyone else, there is the lose your brokerage password approach….

These Charts are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. They are not intended to project the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. The S&P 500 and Nasdaq indices are designed to be broad based unmanaged leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe or representative of the equity market in general.

[i] https://www.linkedin.com/posts/dtjb_hey-kids-the-holy-grail-of-investing-is-activity-7163899176022429696-m_P3?utm_source=share&utm_medium=member_desktop

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453. 

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