Below is a copy of an email sent out to one of my clients as I was giving him an update on YTD performance. This person is in his 80's, and I have tried to provide him with a balance between income, growth, and capital preservation.
The message:
For the past several months, your portfolio balance has pretty much been flat. It doesn't seem to be making much progress, and if we're not careful, it might cause us to make imprudent moves.
We have to keep things in proper perspective, which is why I am being cautious. I have been more focused on capital preservation than I have been growth. It's why I cut your position in NVDA in half and trimmed AAPL and MSFT. The cash from those sales went into CD's at 5% and all will mature in September, a time that has historically been a good time to have cash available for investment. September has historically been the worst performing month for the market.
While your portfolio has flatlined the last several months, the market has declined, allowing your portfolio to actually outperform the market YTD. This isn't something that usually occurs when in capital preservation mode.
To put it in perspective, here are the YTD returns according to Schwab.
You .. +17.49%
S&P .. +12.96%
I'm pleased with how it is working out at this time, and as market conditions change in the coming months, and I expect them too, I will continue to make adjustments as I go along.
Thanks for trusting me.
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For those who might be interested, I will show the portfolio holdings in my next comment.
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