Beacon Wealth Management is a fiduciary, fee-based registered investment advisory firm located in Hackensack, New Jersey. We offer comprehensive wealth management and financial planning services to a sophisticated clientele of high-net worth investors, retirees, entrepreneurs, physicians, surgeons, attorneys and professionals in business.
Our primary role is to provide expert advice and thought leadership across a variety of complex financial topics and to build tactical investment strategies that help accomplish stated objectives, mitigate risk, protect principal and meet return expectations. Our services include investment management, financial planning, retirement planning, tax efficient investing and planning, insurance analysis, trust and estate planning, family foundations and philanthropy.
Our total team commitment to firm excellence, performance, and methodical client service is led by Beacon's founder and CEO Mark S. Germain, CFP®, MBA. Mark is a CERTIFIED FINANCIAL PLANNER and Accredited Domestic Partnership Advisor®. He has been one of Worth Magazine's Leading Wealth Advisors and appeared on Fox Business News. His writings have published in Medical Economics and ORTHOPRENEUR online.
Market likely to rise by year-end, but caveats must be monitored closely
July provided another very strong month for the U.S. equity markets, with the DJIA and S&P 500 both touching all-time highs. The market was led by the financial, energy, industrial, and healthcare sectors, as well as small cap stocks. Earnings reports from banks and other financial institutions were particularly strong. In July the Nasdaq Composite Index continued to show strength and outperformed the S&P 500 by over 1%.
We see some potential for further upside. At the same time, the possibility of a pullback following a strong market run like we’ve seen this year always exists. Remember that in 2012, we had two approximately 7% corrections. We have experienced one such pullback in the stock market in 2013 already.
The emerging markets have taken a very big hit this year due in part to rising interest rates. Earlier in the year we believed, as many others did, that the emerging markets might outperform this year. That appears unlikely today.
What does all this mean for asset allocation?
Not swinging for the fences
Our fundamental goal is to protect principal, not by trying to hit home runs but singles and doubles. We are fully allocated to our equity positions. Within that, our emerging market allocation is small. In addition, we hold no precious metals due to their current high volatility. Within the commodity sector, our only holding is the Calvert Global Water Fund (CFWYX).
On the fixed-income side, we will keep bond durations short to temper rising interest rates.
The basic principle that guides our investment strategy, principal protection with reasonable growth, will not change.