CENTRAL BANKS FIGHT INFLATION
In an effort to control inflation central banks are coordinating their policies
VALUATION UPDATE 2021 Q1
Excessive money printing can lead to a major stock market correction.
STOCK MARKET RETURN -13% WITHOUT A HANDFUL OF STOCKS
If it wasn’t for a small number of mega cap stocks the 2020 stock market return is negative.
HIGHCROFT WEALTH SHIELD PROTECTS ACCOUNT VALUES
Highcroft’s Wealth Shield discipline helps to prevent capital losses.
BONDS HAVE OUTPERFORMED STOCKS OVER THE PAST 2 AND A HALF YEARS
In an environment of weak and flat earnings bonds have outperformed stocks
VALUATION UPDATE 2020 Q2
Although the stock market has had a big correction, valuations remain in record high territory.
S&P 500 NOW MORE CONCENTRATED IN THE TOP 5 THAN EVER
Greatest concentration of stock market capitalization in the fewest names.
How Far Do Earnings Typically Fall in Recessions?
Drops of 20% or more during recessions are not uncommon.
Earnings Plummet Almost -50% During a Bear Market
Bear Markets bring both a dramatic drop in corporate profits and stock prices.
HIGHCROFT WEALTH SHIELD PROTECTS CAPITAL Q1 2020
While the stock market has crashed our investment accounts have not.
BEAR MARKET RALLIES
Some of the quickest and largest stock market rallies are during bear markets.
FEDERAL RESERVE and INTEREST RATES - Q1 2020
The Federal Reserve is cutting rates at a pace that could indicate a recession.
LARGE PERCENTAGE OF PUBLIC COMPANIES ARE UNPROFITABLE
Cheap debt has propped up hundreds of companies that are not profitable.
ALLOCATION UPDATE, COMMODITIES HIGHLIGHT
As the investment landscape changes we made adjustments to client accounts
CORPORATE EARNINGS HAVE BEEN FLAT FOR MANY YEARS
Corporate profits have been flat for 8 years.