BP 401(k) Model Allocations – Q1/2020

Attention BP Employees,

Capstone Wealth Advisors is pleased to announce the release of our Q1 2020 model allocations for your BP ESP.

With the new year, 2020 marks a special milestone for investors as we closeout another decade – and what a decade it was! If you decided to follow our model allocation’s over the past year, or decade for that matter, we trust you should have been pleased with your results.

2010-2019 was the decade of the Bull, seeing stocks closing out the past ten years with an exceptional performance, the Dow Jones Industrial Average returned 174.67%. Remember what we were facing in the beginning of 2010? We were on the heels of the worst recession we had seen since The Great Depression. Mortgages were underwater, unemployment was at unseen levels and the overall outlook for our economy was grim. The Federal Reserve was printing money like it was going out of style and fears of our national debt spiraling out of control were for good reason. But look how things turned out…

While the stock market certainly had its bouts of volatility, every correction in the market ended up being a buying opportunity and the 2010-2019 time period was the first decade going all the way back to the year 1850 where the US completely escaped a recession. It is important however that investors understand markets don’t go straight up indefinitely. Over the past 10 years the market experienced some very large swings. Despite all those market dips, swings and corrections, the end result was a significant gain.

Economic fundamentals have and always will remain at the core of our asset management focus. While 2020 will likely experience a market downswing at some point, the current economic environment remains very strong and we expect 2020 to be another good year for stocks overall.

The main focus within our BP 401(k) model allocations remains in US Large-Cap stocks and have driven most of those investment gains. Depending on which model you use, some allocations are implementing varying levels of bonds, cash and other asset classes to balance the overall risk associated with just stocks.

If you would like to see how a Capstone Wealth Advisors portfolio can increase your actual investment diversification and reduce your investment portfolio risk or would like to get additional information about our current economic outlook both domestic and abroad please contact us directly at 877-739-6007 or email tyler@capstonewealthadvisors.com. As always, we will assist you free of charge and with no obligation.

Click here to view our Q1/2020 401(k) Model Allocations
Regards,

Tyler E Ryan
Capstone Wealth Advisors
877-739-6007
cwabellingham.com

 

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing involves risk, including loss of principal. International & Emerging Markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in Emerging Markets.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

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