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
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…
WCA Quarterly Commentary 3Q24
The U.S. economy grew to a record $28 trillion annualized in Q1, the equity market added $9 trillion over the past year, reaching a record $57 trillion, and our WCA Barometer shows positive (albeit fading) strength. Despite this, popular indices’ gains are driven by a few mega-cap companies, leading to less diversification. Historically, smaller companies thrive in expansions and high-risk environments, yet today’s market favors mega-caps. In this update, we address investor concern about growing market divergences between large and small, how we believe portfolios should be positioned to benefit from what comes next, provide an update of current conditions,…