Market Environment Update / Introducing Brad Vandervelde, CPA
Telos Wealth Management Posted on Tuesday, February 1, 2022 at 8:39AM The essence of portfolio management is the management of RISKS, not the management of RETURNS. All good portfolio management begins with this premise.[i]
Following the market lows of March 2009, the S&P 500 has generated an average gain of 18.6% per year, which is well above the long-term average annual gain of 9.7% since 1927. This statistic alone suggests that the U.S. stock market cannot continue at the pace of the last 12+ years. There will be a reversion to the long-term average gain, and a reversion to the long-term average means there will be years in which the market produces returns which are significantly less than the long-term average, including negative returns.
People somehow think you must buy at the bottom and sell at the top. That's nonsense. The idea is to buy when the probability is greatest that the market is going to advance.[ii]
Our Market Environment Indicator (MEI) turned negative last week, resulting in a reduction of market exposure and an increase of cash allocations in our tactical strategies. It is too early to tell if this is a false signal, if the market has entered a short-term correction, or if it is the beginning of a long-term bear market. For now, we are managing risk and patiently waiting for the MEI to signal that “the probability is greatest that the market is going to [continue] to advance”[iii].
Introducing Brad Vandervelde, CPA
We are delighted to introduce Brad Vandervelde, CPA, who has joined our team in the role of Research Analyst.
Brad moved to Wenatchee in the winter of 2019 seeking a strong and safe community to raise his family. He and his wife Hailey (who grew up in Wenatchee) are excited to raise their two daughters in this beautiful part of the country. Brad is passionate about his faith and family first and foremost. He loves all racquet sports but is currently hooked on pickleball. He also enjoys hiking, winter sports, and reading. His latest interest is in the fascinating world of wine—he and Hailey are trying to go to every winery in Central Washington.
Brad started his career in public accounting and obtained his CPA license in 2016. He had the privilege of working for three separate firms: a large international accounting firm in downtown Chicago, a national firm focusing on faith-based nonprofits in Colorado Springs, and a local accounting firm in Wenatchee.
While in the accounting profession, Brad found himself often researching market trends, investment vehicles, and tax strategies out of curiosity. He soon found himself informing friends and family about what he’d learned each day. Helping others navigate the complexities of the financial market quickly became a passion of Brad’s and led him to joining Telos. Brad is securities licensed and will soon begin working on obtaining his Certified Financial Planner® designation.
Brad volunteers with First Tee to equip youth with life skills learned through the game of golf, is a member of the Wenatchee YMCA’s Finance Committee, and is involved in various capacities at his local church.
As many of you know, we have been looking to add someone with Brad’s skillset for a long time and have interviewed countless business-qualified professionals who simply were not the right fit relationally. Often, the best things in life are the things you must wait the longest for. Brad’s character, relational skills, and business acumen make him particularly well-suited for a very bright future at TWM. We look forward to introducing Brad to you when you come in for your next meeting!
[i] Benjamin Graham, The Intelligent Investor
[ii] Martin Zweig, fund manager and author
[iii] Ibid
Share Article →