Sticking To Our Knitting
“Stick to your knitting (what you’re good at) and don’t compromise.” –Simon Campbell, renowned British Chemist
That’s exactly what we do here at Verity Capital. I feel what we’re really good at is setting up highly diversified portfolios in alignment with each individual’s risk tolerance that give investors the greatest chance of having a successful investing experience.
That can be highly challenging in today’s environment but we stick to our knitting knowing we are doing the right thing and the markets will eventually reward us.
Here are some things we didn’t do:
– Chase the crazy cryptocurrency mania that seems to be grabbing all the headlines these days. Bitcoin, the best performer in this category is down over 60% year to date (ytd).
– Didn’t get caught up in the talk of the cocktail party circuit, special purpose acquisition companies (SPACS). That group is down over 50% on average ytd.
– Didn’t purchase any nonfungible tokens (NFT’s). I’m not sure I even understand these but a lot of younger generation investors believe they are the ticket to the promised land. They’re down on average over 60% as well.
– Didn’t get caught up in Cathy Wood’s ARK Innovation ETF which was the talk of the town until just recently. That’s down almost 60% ytd too.
– Didn’t reach for yield on the bond portion of our portfolios. We always stay disciplined with short duration/ high quality bonds. This is a tough environment for bonds. We’re down about 5% ytd on bonds whereas long term treasury bond funds are down over 20% ytd.
It’s been a tough year so far, no question. We just stick to our knitting. Depending on your personal risk tolerance, you’re portfolio is down on average 12-14% this year. This is all part of the investing process. We’re busy rebalancing your portfolios to be in the best position to profit when the markets turn….and they will.