From the desk of Kevin Hodson

On the Desk

Closing out 2023, we are reflecting on the continuous noise that permeates the markets. Our long-term approach helps us stay focused, though, as we look past week-to-week disruptions to bigger picture indicators.

Interest rate increases, for example, have been on everyone’s mind. We’re less concerned with those trends at this point, as we’re two years into the Fed’s rate hikes and expect these to slow.

Jobs are a more interesting indicator. We continue to see strength in the labor market, but we expect that to soften a bit in 2024. This, in turn, will trigger a roll back of inflation.

Realistically, we believe our portfolios are built to withstand these cycles. If you think about AAF Wealth Management as the car you take on life’s cross-country financial journey, the portfolio we create is the engine. It has redundancies and safeguards built in, it knows where the fuel is coming from, and it’s designed for the long haul.

Our financial planning is the steering wheel, which is of course just as important if not more important during times of stress and global uncertainty. Adapting the plan is akin to taking a small detour, whereas retooling the engine is a much higher risk proposition.

Peter Lynch, famed Fidelity investor, said it best: “Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.”

The upshot is that, heading into 2024, we will stay the course, keeping our eye on the long-term destination.

Off the Desk

Going into the winter season, I always look forward to getting outside and snowboarding. This year I may see a little less action than last as I battle an injury and a well-overdue bathroom renovation. But I do hope to find outdoor time.

For now, I’m happy with the iPad, my dog Harley curled up in a spot of sunshine, and the stack of books on my desk. I’m considering tackling Twilight in the Desert, which has been calling my name the past couple of weeks.

I’m not big on self-promotion, but I’ll admit I’m excited to have earned the Chartered Alternative Investment Analyst (CAIA®) credential. I’m always looking for new ways to apply the vast troves of market research available to us, and this designation opens doors to alternative investing strategies in sectors like real estate and private equity.

I’m looking forward to connecting 1:1. Until then, happy holidays and may the season bring you peace, hope, and joy!

AAF Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where AAF Wealth Management and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by AAF Wealth Management unless a client service agreement is in place.