Hightower Podcast: Collective Wisdom

Cory Bittner of Falcon Wealth Advisors said that while value investing has undeniably lagged growth and momentum investing through the long bear market, the style itself still has merit, and he warned that history shows that declaring any investment style as dead tends to happen shortly before the market ultimately rewards that style again. Likewise, Peter Lang of HighTower Westchester, noted that what passes for value investing these days has changed, and that investors can benefit from diversifying to own deep- and relative value stocks, especially as changing markets constantly put the value label on new and different names.

A discussion of the proper use of alternatives and the decision to give up liquidity late in the market cycle highlighted the vastly different strategies investors can follow when it comes to bringing non-correlated assets into the fold. Jeremiah Riethmiller of Sarian Strategic Partners suggested keeping 10 to 15 percent of a portfolio in alternatives, with about half of that money in issues that remain liquid, the more traditional managed-futures, market-neutral or absolute-return strategies. Steve Tresnan of Tresnan Ferst Wealth Advisors, by comparison, was willing to put up to half of assets into alternatives, and was willing to go much more illiquid, using private-equity investments along with the traditional alternatives to build a more endowment-like all-weather portfolio.

Steve Tresnan of Tresnan Ferst Wealth Advisors and Jeremiah Riethmiller of Sarian Strategic Partners both cited data showing that fixed income is no longer the same kind of buffer for equities in troubled times, but came up with different solutions for balancing rate risk with the need to provide an equity hedge. Tresnan said he is looking more to private credit to diversify and achieve better balance, while Riethmiller is sticking with a more traditional barbell-style approach to give his clients balance.

Jeremiah Riethmiller of Sarian Strategic Partners and Steven Tresnan of Tresnan Ferst Wealth Advisors are watching the same economic news and reading the same news headlines, but are reacting slightly differently to what they see now. Riethmiller sees a market and economy that is slowing but not stopping or falling off a cliff any time soon, while Tresnan sees good news -- like record-low unemployment rates -- as creating some tougher times for businesses. Both see positives in the economic numbers, but say the market will still have to push hard to avoid the growing obstacles beneath the surface of the data.

The buzz about alternative investments had faded over the last few years as performance in securities outside the stock/bond/real estate space had been lackluster, but the return of volatility to the market late last year coupled with its late-year swoon had financial advisers reconsidering the role of alternatives in portfolios. In this rebroadcast of an episode from late 2018, Jake Falcon of Falcon Wealth Advisors in Mission Woods, Kansas, and Ed Terwiliger of the Nulman Group in Providence, R.I., examine the appropriate role for alternatives to play in a portfolio now.

When it comes to finances and love, true romance comes in the boring conversations about budgeting, savings, beneficiaries, estate planning and more. In this conversation -- originally broadcast in 2018 -- Matt Harris of HighTower Global Investment Solutions, Peter Lang of HighTower Westchester, and Jake Falcon of Falcon Wealth Advisors discuss the efforts couples need to make to cover the important financial issues they face and to share information that will help the function better both individually and as a unit.

In a discussion of key investment themes for the second half of 2019, Jake Falcon of Falcon Wealth Advisors in Mission Woods, Kansas, noted that he'll be looking for companies that can generate real earnings growth at a time when overall economic growth is slowing, while David Hartness of IronGate Partners in Wilmington, N.C., said he will be focused on balancing market growth with risk and guarding against complacency in any possible slowdown later in 2019.

In this week's Collective Wisdom podcast, David Hartness of IronGate Partners in Wilmington, N.C., and Josh Falcon of Falcon Wealth Advisors in Mission Woods, Kansas, discussed how overseeing client portfolios means working with the customer's other counselors, from lawyers to accountants to insurance agents and more, and that coordinating those efforts involves communication, cooperation and, occasionally, the ability to stand up and be strong in your belief on what is the best course of action for the individual investor.

In Collective Wsidom this week, Jake Falcon of Falcon Wealth Advisors and David Hartness of IronGate Partners talk about how their firms work with clients, and the various resources that clients can look forward to, because while individuals think they are hiring an adviser, their experience can be a lot different -- and much more -- than simple sit-downs with the face of the firm. Understanding what you will get before signing on is key to being happy with the advisers you ultimately work with

Peter Lang of HighTower Westchester and Ruth Gretz of RTD Financial discussed the long-term, non-financial concerns that investors need to consider and both noted that timing Social Security and considering increasing lifespans are among several crucial decisions that need to be made properly in order to protect a lifetime's worth of saving and planning.

Ruth Gretz of RTD Financial in Westport, Conn., and Peter Lang of HighTower Westchester (NY) discussed properly maintaining beneficiary designations on this week's Collective Wisdom podcast, noting that it's a small, forgettable task that has big consequences when not kept current after life events and other changes. They discussed the gamut of documents and situations where a small mistake -- not updating a form -- can have enormous consequences that can effect families for generations.

Peter Lang of HighTower Westchester and Jeffrey Corliss of RDM Financial discussed their takeaways from HighTower's recent Executive Service Showcase, most notably in areas that are not related to investments. Lang noted that investors need to focus on saving more and on managing money with an eye toward their longevity. Corliss, who also stressed the importance of examining longevity, while also stress-testing a financial plan against the need to care for parents, adult children returning home, loss of work before planned retirement age and more.

This week's Collective Wisdom discussion focuses on using smart-beta, industry- factor- and event-based exchange-traded funds (ETFs), and while the experts -- Ray Baraldi of Sarian Strategic Partners, Jimmy Hausberg from The Hausberg Group and Jeff Kelly of Kelly and Wohlner Group -- all advocate for their targeted use to lean into specific opportunities and market conditions, they also point out how crucial it is to plan from the get-go for leaving such specialized investments behind.

Jimmy Hausberg of the Hausberg Group said he is looking for disruptive technologies when he tries to spot the next great investment area, while Jeff Kelly of Kelly and Wohlner said he thinks cannabis are the hot stock idea. Ray Baraldi of Sarian Strategic Partners said he favors the disruptors, but uses a cannabis ETF investment for clients determined to own pot stocks. One thing all agreed on was using ETFs for emerging, nascent industries

Jeff Kelly, chief investment officer at The Kelly and Wohlner Group in Denver, said there is a compelling case to be made for iincome-oriented investors with a balanced portfolio to make a slight increase to their allocation toward ultra-high quality long-term bonds. His HighTower colleagues, Jimmy Hausberg from the Hausberg Group in Beverly Hills, Calif., and Ray Baraldi of Sarian Strategic Partners in suburban Philadelphia -- both were a bit more cautious on long-term bonds noting that a muddy rate picture makes them nervous about extending durations too far out.

Peter Lang of HighTower Westchester and Michael Sheldon of RDF Financial Group take on the classic active-versus-passive management debate and while both advisers use each form of investment vehicle for clients -- depending on circumstances, needs and more -- Lang explained why he has a slight preference for active management while Sheldon extolled more the virtues of passive investing.

Matt Harris, head of investment strategy for HighTower Wealth Management, joined Collective Wisdom host Chuck Jaffe on his show, Money Life, to discuss the market's current technical signals. The interview -- a bonus episode of Collective Wisdom -- has Harris discussing why stock prices -- despite solid underlying technicals -- seem likely to bounce around in a wide range for a while, awaiting a catalyst that can help the rally continue or that triggers a deeper setback. 

Michael Sheldon of RDF Financial Group and Peter Lang of HighTower Westchester discussed the concerns they had for the market entering 2019 and what they are worried about now, two months later after the market staged a stronger-than-expected rally to start the year.

Domestic Equity: Which sectors are attractive and which are challenging? HighTower, a national, independent financial services firm, believes in the diversity of opinion to develop its intellectual capital. The “Collective Wisdom” podcast from HighTower’s Global Investment Solutions showcases the range of thinking at the firm, highlighting financial topics that matter most to you. Subscribe now to get regular updates from HighTower advisors from around the country.

Richard Lewis and Jeremiah Riethmiller of HighTower Advisors discuss connecting with clients through social media. HighTower, a national, independent financial services firm, believes in the diversity of opinion to develop its intellectual capital. The “Collective Wisdom” podcast from HighTower’s Global Investment Solutions showcases the range of thinking at the firm, highlighting financial topics that matter most to you. Subscribe now to get regular updates from HighTower advisors from around the country.