Attention BP Employees,
Capstone Wealth Advisors is pleased to announce the release of our Q4 2019 model allocations for your BP ESP 401(k). If you have been following our models this year you should be pleased with the results so far. Based on current economic conditions both domestic and globally, we are reaffirming our Q3 2019 allocations and recommending they be maintained as is. This means if you’re using our model portfolios you don’t need to make any changes at this time. We would however encourage you to log into your BP ESP and check to make sure your allocations are actually following our models properly, sometimes a small rebalancing is needed to put the portfolio back in alignment with the models.
October is historically a volatile month for equity markets across the globe and with the impending “Brexit” deadline fast approaching (October 31st), we believe the possibility of this October being volatile is likely. If you have been following our recommendations over the past year, you know we have eliminated exposure to both the International Fund and the Emerging Markets fund across all models for quite some time precisely for this reason. Focusing on the US equity and bond markets has been a better place to be invested both from a risk and performance perspective and we expect that to continue.
In our last Quarterly 401(k) email, I discussed the importance of cutting through the noise and sensationalism of the media when it comes to your investments and focusing on actual economic data, I stand by that statement. Economic fundamentals ultimately control equity prices not the news of the day and US economic fundamentals currently remain strong. International and Emerging Markets fundamentals are not nearly as strong and carry a much higher level of risk. Because of this we have avoided those asset classes for most of the year and will continue to do so until we can see economic stability from these broad reaching areas.
Our economy continues to be strong and our investments should be structured to reflect that, for now.
If you would like to get some additional information or commentary about the current economic climate both domestic and abroad, you can simply reply to this email and we can discuss those matters in further detail.
If you would like to speak with one of our planning specialists regarding structuring your 401(k) or determining when you are able to retire please let us know.
Click here to view our Q4/2019 401(k) Model Allocations
Tyler E Ryan
Capstone Wealth Advisors
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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