Equity Investing
We seek to buy growing, profitable, and well-capitalized businesses at reasonable prices. The habit of relating quality to value is central to the WCA equity investing process.
Asset Allocation
A comprehensive suite of asset allocation portfolios focused on matching investment objectives with risk tolerance. Both passive and active strategies are offered.
Fixed Income
This portfolio seeks to generate a stream of income from a portfolio of 30 investment-grade corporate bonds. The portfolio is constructed as a “ladder” with maturities spanning 10 years.
Recent Commentary
Viewpoint 2025
The U.S. economy in 2024 showed remarkable resilience against inflation, rising interest rates, and global uncertainties. GDP expanded, consumer confidence stayed strong, and household wealth hit $155 trillion. This reflects America’s economic strength, driven by innovation and industrial capacity, though vulnerabilities remain. Fiscal shifts in 2025 offer potential gains but will test the economy’s ability to sustain momentum. The S&P 500’s rise highlights earnings growth and multiple expansion but reveals risks tied to the dominance of the “Magnificent 7.” Concentration risks persist, even as diversification provides balance. With returns likely to moderate, strategic positioning will be critical to navigating the…
WCA Quarterly Commentary Q4 2024
U.S. stock market valuations have reached a historic $60 trillion, with GDP and household net worth doubling since 2009. Employment has grown by 30 million jobs, and S&P 500 profit margins have expanded significantly. However, declining earnings yields suggest stretched valuations, indicating potential risks ahead. Despite differing methods, as the election approaches, both major candidates share goals for developing the labor force, improving housing, and regaining energy leadership. Given these conditions, diversification is prudent; bonds, gold, and emerging markets offer viable alternatives as the Federal Reserve’s (Fed) policies weaken the dollar. Tactical adjustments are needed to balance growth opportunities and…
The Anticipated Rate Cut
We agree with the Federal Reserve’s (Fed) decision to cut rates by 50 basis points. As we will explain, our own analysis of data throughout the past few months confirms the necessity of the Fed’s September rate cut but also highlights a potential underestimation of the economy’s weakening momentum since spring. In reviewing the Federal Reserve’s monetary policy actions throughout 2024, it’s essential to juxtapose their observations with our own insights derived from the WCA Barometer. The Barometer, a diffusion index measuring various economic inputs, provides a nuanced perspective on the evolving economic conditions. We use the WCA Barometer to…