We recently put together a note arguing why we investors should not try to time the stock market. Never in the history of the stock market have we experienced the magnitude of the day to day fluctuations or the speed of the current decline. Astoria Portfolio Advisors thinks it’s crucial to think strategically and long term especially in an environment where emotions are running high (click here).
- Earlier this week, the Federal Reserve announced further actions to help stem the tide of the Coronavirus. In short, the Federal Reserve announced an unlimited QE, several new lending programs, and the ability for them to buy Fixed Income ETFs. Astoria believes these steps will help alleviate some of the dislocations we are seeing in the marketplace (click here).
- The last few weeks have been an opportune time for tax-loss harvesting in our strategies, of which we’ll systematically continue to capitalize on. This blog explains the mechanics well (click here).
- Lastly, valuations for various asset classes have materially declined (see table below). Remember, the idea is to buy when valuations are low and sell when they are high. Most investors, ironically, do the opposite.
- For most of the past few years, Astoria has been underweight (and at times completely avoided) several of the most expensive parts of the market (high yield credit, leveraged loans, corporate bonds, US large cap growth stocks) as we thought they would be vulnerable during a market correction. We have also allocated our portfolio towards alternatives which were meant to go up in value when stocks went down. Our systematic portfolio management process has helped our portfolios on a relative basis this year.
- With that said, we now believe valuations are very attractive for long-term investors. We have had a number of inquiries regarding allocating money for long-term strategic portfolios. Feel free to give us a call or email us for information about our investment solutions.
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