To our clients, families, friends and supporters:
RZ Wealth wishes you and yours a happy, healthy and successful Holiday season and New Year. It’s refreshing that I am able to write to you as we approach the finish line to a double digit return in the market. It gives us a sigh of relief that the talk of a U.S. Recession is currently off the table following last year’s December decline, the worst since the great Depression.
Obviously, annual market returns of 25% or more are far and few between. We are grateful for a good year, but cognizant of risks. The fact that we are in the midst of the longest bull market in history raises caution for investors and requires more attention and care from us. As a Registered Investment Advisor (RIA) and as fiduciaries we are committed to creating an investment plan that balances risk vs. opportunity based on your needs.
Although the media tends to categorize the market in a digital sense such as Bull or Bear, risk on or risk off, the market is far from a linear or polar experience. The market experiences nuances and many shades of gray rather than just black and white. Media coverage of the markets is intended to provoke an emotional response. Greed and fear are classic investor traits as everyone likes to see increasing vs. decreasing values when we check our accounts.
Falling equity values will not necessarily impact income since dividends are declared on a per share basis. It is the quantity of shares that mandate income not the value of the shares. Of course, in the case of a falling equity price related to the profitability of a company (GE for example), a dividend cut may follow and then income is impacted.
We are conditioned to look for sales or a buyer’s market when it comes to making major purchases such as appliances or homes. However, it takes discipline when it comes to investing into a “bearish” market. It is imperative to have a plan when investing which accounts for needs, goals and tolerance for risk. Without an effective plan, all else fails.
Approaching nearly 35 years in financial services, I am grateful for you, our valued client. The trust and faith that you have shown us over the years, which in many cases is now entering its 3rd generation of families, is humbling. Thank you for the opportunity to be of service to you, your families and the pursuit of your goals. From all of us at the RZ Wealth Team, we wish you a joyous holiday season.
Irvin W. Rosenzweig, CFP®, ChFC®, CLU®, CRPS®, AEP®, AIF®