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
The Inflation Threat
As inflation surprises markets, we consider what this means to investors and what policymakers are likely to do.
Of Bulls and Bears
Apart from a short downturn early in the pandemic, the stock market has enjoyed a great bull run since 2010. Yet, from January 3 through May 20, the stock market fell about 18.5% before rallying 5% off the recent bottom. Despite the recent rally keeping the market out of “bear market” territory, we should not let down our guard because growth is still slowing. A lapse into outright recession would complicate the bull case for stocks through year-end.
Down to Earth?
On the surface, valuations appear to be coming back down to earth. The Standard & Poor’s 500 stock index has declined to nearly 4,000 from almost 4,800 in January. Back at the January peak, forecast year-ahead earnings for the index stood at $223, and now those forecasts are at $237. Today’s price-earnings ratio is 17x compared with 21x in January and in line with the 10-year average. So, stocks are moving down despite rising profit forecasts, resulting in better value.