News & Investment Updates From Hemlock Creek Wealth Management
Investment Update
How to Navigate the Space Between Evidence & Uncertainty
Certainty has a way of sometimes working against investors in both directions.
When markets are falling, it shows up as conviction that losses will continue. When markets are rising, it can reappear as confidence that gains have gone too far, that a correction is overdue, or that strength itself is a warning sign.
June offered a useful illustration. Equity markets softened during the month, but the broader second quarter remained exceptionally strong. That combination tends to produce discomfort. The data points to a constructive market environment, while instinct often argues for caution.
This month’s Note examines previous periods of unusually strong quarterly equity returns, what tended to happen afterward, and why strong markets have often deserved more respect than investors are inclined to give them. It also explores why a systematic investing process can help with navigating the space between evidence and uncertainty.
But first, here’s a summary of the global asset classes utilized in our portfolios and their exposures for June.
News
Trend Following: Weed Control for Portfolios
A powerful motivator for many parents is a desire to have their children’s upbringing to be better than their own. Better schools, a nicer house, more toys, and better vacations are all things many of us wish for our kids to experience – especially if we didn’t have these things in our own childhood.
And yet, there are many aspects of childhood that become nostalgic as we grow older. Certain things that we either didn’t enjoy or outright despised, we now remember fondly.
An example will help explain. And, perhaps unexpectedly, it offers a valuable lesson about investing.
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