Albert Einstein once said, “It is not that I’m so smart but I stay with the questions much longer”. This year has been one that required continual questioning to understand all that impacted the global economy, our client’s changing needs as they move from pandemic living, and the direction of the financial services industry.
The most challenging event to navigate was also the most welcome, interest rates increased. For many years, investment portfolios have carried more risk than many preferred due to heavier reliance on equities for return opportunities. Long missed were the bond yields of 5, 6, or even 7%. The manner in which the rate hikes came leaves room for debate. Could the impact of been less? Probably, but we are here now and it’s not all bad. Our portfolios are returning to a healthier balance between equity and fixed-income holdings.
Our relentless effort to lessen volatility within our portfolios was met with moderate success. This is most certainly due to the investment selection process utilized by Dimensional Funds. The ability to quickly and efficiently screen for the following factors allowed for needed flexibility in markets that were in constant modification:
- quality – consistent earnings
- value – price/earnings ratio
- momentum, size, and dividend yield
Does that mean we are content with 2022 returns? No, it means we are unwaning in our confidence in this investment strategy and will move into 2023 energetically seeking complements for it.
In addition to our valued relationships with LPL Financial and Dimensional Fund Advisors, you will benefit from our active engagement with Fidelity’s fixed income department and Riskalyze for risk moderation throughout 2023. The structure of The Linkous Group LTD will remain as one that serves as your Fiduciary and is a Registered Investment Advisor subject to the maximum state and federal oversights and disclosure requirements.
The team at ACA Group is on board as well to keep current with all legislation, requirements, and trends in the financial services industry to ensure you that our dedication to providing excellence and relevance is reflected in all we do.
These professional relationships expand our knowledge and service capacity and allow us to stand proudly with not only the larger firms, but the award-winning ones too while maintaining our boutique nature and the most personalized manner of client service.
The menu of services available to all includes portfolio management, financial, estate, business succession, tax, and divorce planning. We continue to offer a full line of insurance products and provide expertise in all areas of risk management.
We hope you will avail yourself of all that we offer and may 2023 bring prosperity to all.
With gratitude,
Susan R. Linkous, President
P.S. Please register for our DFA Webinar on Jan. 10th as a friend of The Linkous Group LTD. Read on for more details about the webinar and other thoughts from Susan’s Corner.
LPL Research’s Outlook 2023: Finding Balance is our guide to how the readjustments in the economy and markets may impact you in the coming year. Read more….
Dimensional: Markets Don’t Wait for Official Announcements.
“The market is constantly processing new information, pricing in expectations for companies and the economy. Investors who look beyond after-the-fact headlines and stick to a plan may be better positioned for long-term success.” Read more…
Charitable giving has been a core value of The Linkous Family and The Linkous Group for 30+ years now. Each year we commit to giving to a few organizations that we have grown to know and whose work is invaluable. In addition to the traditional end-of-year gifts and to better support the needs these organizations have, we will also begin a monthly giving commitment in 2023. They have expressed appreciation for this as it helps them to have reliable income streams.
Thanks to your support, trust and confidence in selecting Susan Linkous and The Linkous Group, Ltd. As your financial advisor, we have chosen to support:
Arizona Humane Society
Paz de Cristo Outreach
PPEP Inc (Practical Education)
PBS – Channel 8 KAET
NPR Public Radio
St. Mary’s Food Bank Alliance
Thank you for making this possible!
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| Join Apollo Lupescu and Joel Hefner for an overview of 2022 markets and lessons learned. Click here to register for your spot today. January 10, 2023 at 11am PST (12 MST) |