For Your Information
(Not Gambling… Investing.)
As an Investor, what motivates you?
Think seriously about your answer. If your immediate reaction is high returns to the exclusion of all other considerations, please consider this: it is very likely you may not be able to control the outcome. Moreover, you might miss out on earning what you need to secure your family’s future. Knowing YOU are the hero of your family’s stability surely motivates you to ask yourself: what can I control, what level of risk am I willing to assume? I feel it’s all about being responsible for how you manage your investments.
• Markets are almost always unusual but for different reasons. Today is no exception. Since COVID, the S&P 500 has narrowed into a highly concentrated index. The top seven equities make up more than 26% of the 500 represented there.1 That means many investors in this index are holding portfolios made up of primarily seven companies, instead of what they may believe to be a broad investment in 500 of the large public equities.
• Inflation (whether transient or not) is here but seems to have little impact on valuations. Meme stocks (companies popular on internet blogs) are still doing remarkably well. They are seeing huge increases in volume based NOT on how well the company performs, but on social media hype. They are often not making money and are considered overvalued. Their daily price fluctuations can be as much as the market moves over many years.
It’s important to note: the most uncontrollable aspect of investing is price. Bubbles do burst. There have been seven corrections of more than 10% in the last 10 years alone2, and while there are many market movements that can’t be controlled, there is a way to gain peace of mind. At Bahl & Gaynor, we structure clients’ portfolios using growing dividend investments and other downside protection strategies (customized to each person’s needs) in a way that your outcome – higher income annually – is more highly controlled. Given the recent spike in inflation, who wouldn’t want more income in a reliable and repeatable form?
Our goal is to provide reliable, consistent delivery of a product that will grow your capital responsibly and offer a high chance of receiving materially higher dividends annually.
Ask investors who lived through the massive dot-com boom and collapse about “timing the market.” Unexpected pullbacks can cause catastrophic losses to portfolios without downside protection strategies in place. We believe a strong dividend policy (and the ability to grow those dividends) signals earnings power, earnings quality, and financial strength.
Responsible advisors work to grow a client’s income and wealth in a disciplined, repeatable approach. We feel through our approach we help you be responsible to your family and your future. With your financial security at stake, do you choose to invest responsibly… or do you gamble?
John B. Schmitz, CFA, CIC
Portfolio Manager and Principal
Investment advisory services provided through Bahl & Gaynor Investment Counsel (“B&G”), a federally registered investment adviser under the Investment Advisers Act of 1940. Registration does not imply Information or a certain level of skill or training. More information about B&G can be found by visiting www.adviserinfo.sec.gov and searching by the adviser’s name. This is prepared for informational purposes only and may not be applicable to your particular situation or need(s). It does not address specific investment objectives. Information in these materials is from sources B&G deems reliable, however we do not attest to their accuracy. Past performance is not indicative of future results. Indices and benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Index return information is provided by vendors and although deemed reliable, is not guaranteed by B&G. No fiduciary relationship exists because of this commentary. If you have any questions regarding the indices or investments referenced in this presentation, contact your B&G investment professional.