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It's Part of the

Journey

It’s Part of the Journey

March 14, 2025 by Lesjak Planning

Over the past 45 years, one thing we have become accustomed to is the inevitable cycles of the investment markets and the wide variety of reasons surrounding them.  Depending on your stage of life, your degree of concern could vary.  For those who are still accumulating assets with long time horizons, a short-term correction in prices can be seen as a buying opportunity.  For those who no longer work and have entered their retirement years, the impact could feel much more daunting. 

As your Advisors, it is important that we make sure your needs and goals are clearly understood so we can make recommendations that give you the best chance for achieving those goals.  We know that the investment markets will become overvalued, correct, and eventually move on to new high points.  The investment strategies recommended and implemented for you take that into consideration along with your potential cash needs and comfort level.

These past two years we experienced strong gains in certain sectors and companies to the degree that they became significantly overvalued.  The correction in their prices began back in December of 2024 when we believe sector rotation started to take place.  While current world events may or may not exacerbate the process, it is a process that had already begun nonetheless.

While some prices are correcting to more attractive levels, maintaining a diversified portfolio can provide you exposure to other opportunities within the investment markets.  The U.S. Dollar has declined roughly 5% since mid-January providing a strong boost to international investments.  The sector rotation that began this past December has benefited the more traditional Blue-Chip companies and those who tend to pay higher dividends.  Current credit spreads along with the likelihood of lower interest rates in the future are providing a very favorable backdrop for the fixed income category.  These are just a few examples.

Our process remains unchanged.  We will continue to monitor your investment strategies on a regular basis throughout the year and make changes when appropriate.  If you feel your long-term needs and goals have changed, it is very important that you contact us so we can make the necessary adjustments.  We greatly appreciate the trust you place in us to help guide you along this journey.  Please do not hesitate to give us a call if you would like to discuss in greater detail.

The Lesjak Planning Team

 

 

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Lesjak Planning

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