March 19 update on T Bank & UMA Model Performance from affiliate Tectonic Advisors
Here is a brief update on how investment models are performing.
Volatility remains very high, and now that includes the bond market. A global shortage of U.S. dollars is putting pressure on the Treasury market liquidity, which is producing continued swings in bonds that have coincided with down days in equities.
The average stock (as measured by the S&P 1550 Equal Weight Index), when looking at the breadth of the market, is down just shy of -40% YTD. The T Bank Equity Fund is down approximately -27%.
On Wednesday, March 18, the bond market was -3.5%. The Core Fixed Income fund at T Bank was down -1.4%. This is above expectations.
Below you will see a chart of how T Bank Model 5 has performed through the drawdown period since Feb. 19. There is also another chart that shows various drawdowns in the market dating back to the early part of the 20th Century (courtesy of Ben Carlson at A Wealth of Common Sense).
Source: www.awealthofcommonsense.com
As a society, it can feel bereft of good news right now, nothing seems to be improving and it can begin to feel like it will never end. The chart above illustrates how even the worst periods throughout history do in fact end and in short order things improve markedly on average.
Periodic communications may continue, however please contact your planning teams or Tectonic Advisors with any additional questions or concerns.
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Cain Watters is a Registered Investment Advisor. Cain Watters only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Request Form ADV Part 2A for a complete description of Cain Watters investment advisory services. Diversification does not ensure a profit and may not protect against loss in declining markets. No inference should be drawn that managed accounts will be profitable in the future or that the Manager will be able to achieve its objectives. Past performance is not an indicator of future results. All investments and strategies have the potential for profit or loss. Different types of investments involve higher and lower levels of risk. Historical performance returns for investment indexes and/or categories, usually do not deduct transaction and/or custodial charges or an advisory fee, which would decrease historical performance results. There are no assurances that an investor’s portfolio will match or exceed any specific benchmark. All expressions of opinion are subject to change without notice in reaction to shifting market or economic conditions.
