{"id":236989,"date":"2024-10-02T17:37:08","date_gmt":"2024-10-02T21:37:08","guid":{"rendered":"https:\/\/aptuscapitaladvisors.com\/?p=236989"},"modified":"2024-11-05T10:02:21","modified_gmt":"2024-11-05T15:02:21","slug":"are-you-appropriately-positioned-2","status":"publish","type":"post","link":"https:\/\/aptuscapitaladvisors.com\/are-you-appropriately-positioned-2\/","title":{"rendered":"Are You Appropriately Positioned?"},"content":{"rendered":"

The Fed cut 50bps in September and expects more rate cuts to come. They are not alone as central banks around the world are cutting rates. September saw the most rate cuts since 2020.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

JL digs further into the Fed\u2019s positioning in a great post last week: The Fed\u2019s Recalibration<\/strong>.<\/a><\/p>\n

With two full percentage points rates expected from the Fed by the end of 2025, what could a pickup in global liquidity mean for investors?<\/p>\n

I know there are different angles and counters to this perspective, but the reality in rising liquidity (cheaper money and expanding money supply) is the destruction in value of currency. Don\u2019t believe me?<\/p>\n

 <\/p>\n

What a Difference 4 Years Makes<\/strong><\/h5>\n

\u00a0<\/strong><\/p>\n

This caught my attention, from Bankrate as of January 2024:<\/p>\n

A combination of high\u00a0<\/em>mortgage rates<\/em><\/a>, rising home prices and low housing inventory over the last two years is pushing homeownership further out of reach for would-be homeowners, especially first-timers. To afford a median-priced home of $402,343, Americans need an annual income of $110,871, according to a new Bankrate analysis. That\u2019s nearly a 50 percent increase in just the last four years.<\/em><\/p>\n

Just a bit higher than government inflation estimates\u2026seems like shelter is a key piece of many family budgets?<\/p>\n

 <\/p>\n

Beating the Same Drum<\/strong><\/h5>\n

\u00a0<\/strong><\/p>\n

These posts will take less than 10 minutes collectively to read; please revisit these:<\/p>\n

Winning Within the System<\/a><\/strong><\/p>\n

What Matters<\/a><\/strong><\/p>\n

Taxation by Inflation<\/a><\/strong><\/p>\n

With our debt load and our deficit spend, I believe we are on the verge of money creation that dwarfs things of the past. As I\u2019ve said\u2026we either have a debt crisis in the future or a money printer that turns on.<\/p>\n

Which do you think is more likely?<\/p>\n

There\u2019s no doom and gloom in this note, just the recognition that the real risk investors face isn\u2019t drawdown but protecting the purchasing power of their wealth<\/em><\/strong>.<\/p>\n

Our solution is and will continue to be\u2026 convexity. Portfolios should own hedges that provide convex payoffs that do 2 things:<\/p>\n

    \n
  1. Allows for a known correlation that helps protect against drawdown<\/li>\n
  2. Provides the ability to onboard more equity risk\u2026confidently because of #1<\/li>\n<\/ol>\n

     <\/p>\n

    Closing<\/strong><\/h5>\n

     <\/p>\n

    In investing, the most important decision is asset allocation. My convictions grow by the day that for investors to preserve and improve wealth, they need to truly understand what is safe and what isn\u2019t.<\/p>\n

    More stocks, less bonds<\/strong>. We will continue to build solutions and portfolios to deliver on this message. In my opinion, we are providing a path out of the traditional mindset of what is safe and how can I accomplish safety.<\/p>\n

    We believe our deficit spend is a decent gauge of a hurdle rate (6-8% annually) your clients\u2019 money needs to eclipse to preserve and hopefully improve financial position. If stocks, bonds, or cash are my allocation decisions\u2026I know which one gives us the best chance.<\/p>\n

    We want to be the premier options-based provider and our numbers, growing track record, and innovation in the space are helping the cause.<\/p>\n

    As always, thank you for your trust.<\/p>\n

     <\/p>\n

     <\/p>\n

    Disclosures<\/strong><\/h5>\n

     <\/p>\n

    Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward-looking statements cannot be guaranteed.<\/em><\/p>\n

    This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible.<\/em><\/p>\n

    Advisory services are offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level or skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm\u2019s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198. Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama. ACA-2410-3.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    The Fed cut 50bps in September and expects more rate cuts to come. They are not alone as central banks around the world are cutting rates. September saw the most rate cuts since 2020.     JL digs further into the Fed\u2019s positioning in a great post last week: The Fed\u2019s Recalibration. With two full […]<\/p>\n","protected":false},"author":6,"featured_media":233925,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[21],"tags":[291,38,185,83],"class_list":["post-236989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-updates","tag-content-hub","tag-hedging","tag-housing","tag-inflation"],"yoast_head":"\nAre You Appropriately Positioned? - Aptus Capital Advisors<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aptuscapitaladvisors.com\/are-you-appropriately-positioned-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are You Appropriately Positioned? - Aptus Capital Advisors\" \/>\n<meta property=\"og:description\" content=\"The Fed cut 50bps in September and expects more rate cuts to come. 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