Market Review
Second Quarter, 2023 Market Review
July 17, 2023
Dear Clients,
We hope this letter finds you in good health and high spirits. As we reflect on the past quarter, we want to provide an update on the performance of your investments and share some insights on the principles that guide our investment philosophy.
Diversification: A Pillar of Stability
Diversification continues to be a cornerstone of our investment strategy, aiming to reduce risk and enhance long-term returns. The past quarter has reminded us of the importance of a diversified portfolio, as various asset classes experienced differing levels of volatility. Our approach to diversification involves spreading investments across different asset classes, geographies, industries, and market capitalizations.
One way we achieve diversification is through asset allocation, which involves determining the optimal mix of stocks, bonds, and other investment vehicles based on your risk tolerance and financial goals. By spreading investments across multiple asset classes, we aim to mitigate the impact of any single investment’s performance on your portfolio.
Long-term Investing: Patience Rewarded
At LourdMurray, we strongly believe in the power of long-term investing. Short-term market fluctuations can be challenging to navigate, but history has repeatedly shown that maintaining a disciplined approach and staying invested for the long haul can lead to rewarding outcomes.
As shown in the accompanying chart, patient investors who remain committed to their long-term investment goals have historically been rewarded with attractive returns. It’s important to remember that investing is a marathon, not a sprint. We appreciate your trust in us and remain dedicated to navigating the market’s ups and downs on your behalf.
The Small Cap Value Premium: Unlocking Hidden Potential
Over the past few quarters, we have witnessed a reemergence of the value and small-cap premium. These investment styles, often overlooked during periods of market exuberance, have historically provided investors with enhanced returns over the long run. We are confident in the potential of these segments of the market and have positioned your portfolio to benefit from this value-driven environment.
As depicted in the chart above, value stocks have demonstrated a historical tendency to outperform growth stocks over the long term. The recent resurgence of value stocks provides us with renewed optimism, and we remain committed to exploiting this opportunity on your behalf.
Similarly, small-cap value stocks have historically delivered superior returns compared to their large-cap counterparts. By incorporating small-cap value stocks into your portfolio, we seek to capture the potential for outsized gains that can arise from investing in smaller, undervalued companies.
Conclusion
In conclusion, we remain committed to the principles of diversification, long-term investing, and capturing the value and small-cap value premiums. Our investment philosophy is built on a foundation of prudence, discipline, and a steadfast focus on your financial goals.
We are grateful for your continued trust and confidence in LourdMurray. Our team is dedicated to working diligently to navigate the ever-changing investment landscape and help you achieve your financial aspirations.
Should you have any questions or concerns, please do not hesitate to reach out to your dedicated advisor. We look forward to speaking with you and providing further insights into your investment strategy.
Thank you for your continued trust and partnership.
Sincerely,
THE LOURDMURRAY TEAM
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LourdMurray is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.
This is not an offer to buy or sell securities, nor should anything contained herein be construed as a recommendation or advice of any kind. Consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. No investment process is free of risk, and there is no guarantee that any investment process or investment opportunities will be profitable or suitable for all investors. Past performance is neither indicative nor a guarantee of future results. You cannot invest directly in an index.
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