your money in 2020 By MICHAEL GOSSIE
irtus Brutsman was having dinner when the conversation drifted to a local high school and its upcoming homecoming dance. “The uncertainty, excitement, and for some, dread; all these are emotions most people can relate to from our high school year,” says Brutsman, a financial advisor with Wilde Wealth Management Group. “Similarly, these are the same emotions that we all experience going into the election year. As we move into this period of uncertainty, it is vital that we set aside our emotions and stick to our disciplines.” Brutsman isn’t talking about the discipline it takes for a high school boy to keep his shirt tucked in at the homecoming dance. He’s talking strict dollars and cents. “We believe the global economy is about to enter a low-growth period of uncertainty, a period we expect to persist into 2020,” he says. “Adding to the uncertainty surrounding the election, our economy is in a late-cycle environment in which macro conditions are increasingly signaling deterioration.” Other experts agree. Chris Smith, founder of Chris Smith Investments, says the markets are ripe for uncertainty and volatility as we head into 2020. “This is an excellent time to review your current asset allocation and ensure that it matches up with your risk tolerance,” Smith says. “My advice would be to have as little debt as possible and if there are financial commitments within the next 24 months such as buying a new vehicle, replacing a roof, or funding college, to take those funds out of the market now and set them aside. Opportunistically, I would trim any overvalued positions to build up some cash for potential bargains.” So what does that mean if you’re trying to figure out where to put your money heading into 2020?
“Living in the desert has given my family many learning opportunities,” says Brutsman. “One of those is to respect the diverse seasons of the desert. The hot summer months, the rainy monsoon months, or the beautiful spring days that we all look forward to. As a Phoenician, you learn how to be prepared for each of those seasons; similarly, one must strive to be prepared for uncertain economic times. From an investment standpoint, I would encourage each family to stress test their portfolios, before the anticipated uncertainty, and stay alert for opportunities in the coming months. “We are positioning multi-asset allocation portfolios considering our outlook for the global economy and markets,” Brutsman continues. “Given broadly slowing growth, increasing geopolitical uncertainty, and generally higher levels of volatility, we are modestly underweight risk, relative to our benchmark and are building liquidity to take advantage of tactical buying opportunities.” Over the next several pages, you’ll get to learn what other financial management experts say to look for in 2020 and beyond.
AB | November-December 2019