TAX EFFICIENT PORTFOLIO REVISIONS

As 2018 begins and volatility is starting to pick up LSA will be recommending changes to Private Client Tax Efficient portfolios this week to address three primary investment themes and to continue with our movement of reducing risk or correlations in the portfolios.  As market volatility is at historically low levels we believe that this will not be a continued trend moving forward especially around the Federal Reserve’s attempt to unwind QE.  The IPC will be recommending funds in the models with the attempt to reduce risk and to provide solid downside protection or improve diversification in the models targeting more attractive valuation opportunities.  Although the IPC continues to believe that a recession is not eminent in the next 6-12 months, we do believe that the probability of a recession in the next couple of years has increased greatly over the last eight months.  The February 2018 model changes are not targeting big shifts in asset class exposures as we believe the portfolios handled well in 2017 but we will continue to explore the use of alternatives to reduce correlations, emerging market equities to go after attractive valuations, and commodities as ways to combat inflation.

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TRADE DATE IS SCHEDULED FOR February 7, 2018

Private Client Tax Efficient – (Inclusive of the NTF Models):

Posted February 1st:  Private Client Tax Efficient – targeted trade date – Wednesday, February 7th.

*As a reminder, the Revision Explanation Presentation is posted in the “Portfolio News,” section on the LSA Beta PC Tax Efficient home page.