Provide long-term wealth accumulation through ownership of publicly traded stocks.
Global equities are chosen based on size, style, and geography. Overweight and underweight allocations are made on what we view favorably from a forward-looking perspective. Growth companies typically are re-investing most of their cash flows to grow market share. Value companies typically pay larger or appreciating dividends and or may be perceived to be undervalued based on various fundamental metrics. Each style performs differently based on where we are in the business cycle. U.S. stocks and International stocks tend to alternate outperformance over extended periods, we are not afraid to build exposure into recent underperformance.
Large Cap U.S. Stocks – Mid Cap U.S. Stocks – Small Cap U.S. Stocks – Developed International – Emerging Markets
Produce income and preserve capital by loaning money to governments and corporations.
When you purchase bonds, you’re providing financing. Consider it an I.O.U. of sorts. In exchange for your capital, you’re promised interest payments and the eventual return of capital. This makes bonds typically a much more stable investment. It is important to note there is a big difference between loaning money to the U.S. government and loaning money to a faltering bank or energy company. This risk should be reflected in the bond’s yield as you should be compensated for the excess risk you are taking, known as credit risk. The other dominant force in bond investing is interest rate risk. You must be conscious of the risk of loaning money at low rates for long periods of time. Bond prices and interest rates move inversely from one another, especially in cases where the maturity of the bond or fund is long-term.
U.S. Treasuries – Investment Grade Corporates – Asset-Backed Securities (ABS) – High Yield Debt / Junk Bonds – Developed Foreign Bonds – Emerging Market Bonds
Alternative and non-correlated assets that diversify a traditional stock and bond portfolio.
In order to diversify a portfolio, you must own things that behave differently in the same environment, ideally over both short and long-term cycles. We utilize alternative strategies to capture cash flows, hedge inflation, and protect against fiscal crises and currency devaluations beyond what can typically be achieved by just a traditional stock and bond portfolio. Real assets tend to benefit from inflationary pressure, but not all in the same way. Some, like real estate, produce cash flows from rents and provide asset appreciation. Others, like previous or industrial metals, provide appreciation solely off supply and demand forces that can be driven by economic expansion or even crises. Just as in stock and bond markets, buying and selling depends on where you are in the market cycle and what we perceive to be overvalued. vs. undervalued.
Real Estate – Precious and Industrial Metals – Commodities – Natural Resources – Infrastructure – Treasury Inflation Protected Securities (TIPS)
Warren Street Wealth Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.