Dynamic Advisor Solutions

The market, historically weak in September and October, continues a strong run this year with the S&P 500 up 24% through last week (10/18/24), notes Kostya Etus, CFA®, Dynamic Chief Investment Officer. Despite uncertainties, the market is on track for a second consecutive year of bull market returns of over 20%, which has occurred only five times over the last 75 years. Trends that can alleviate the investor scaries include a friendly Federal Reserve (Fed), positive corporate earnings and generous economic growth. Perhaps the most important factor driving the markets is the initiation of interest rate cuts by the Fed. After analyzing the last seven rate cut cycles, there are consistent observations we can learn from history, including: • Most asset classes are positive • Bonds beat stocks • Anything is better than cash Read the full update in this week’s Dynamic Market Update: https://lnkd.in/eeu7-ncT #dynamicmarketupdate #federalreserve #diversfication #assetallocation

Tax strategies can help investors and advisors reduce unnecessary costs, improve returns and seize opportunities within financial plans, says Lucas Felbel, CIMA®, Director of Portfolio Services at Dynamic Advisor Solutions. One advanced strategy is capital gains budgeting, which helps investors to predetermine the amount of capital gains they'll realize in a given year. By planning ahead and combining with tax-loss harvesting, charitable giving and preferential asset location, capital gains budgeting assists the minimization of taxes while maintaining a predictable level of capital gains, ensuring that an investor's financial plan stays on track without unexpected tax impacts. Learn more in this week's Dynamic Portfolio Perspectives: https://lnkd.in/eiauTJaf #taxplanning #taxstrategies #assetallocation

In this week's Dynamic Market Update, Chief Investment Officer Konstantin (Kostya) Etus, CFA notes that the strong performance across the first three quarters of 2024 has left the stock market in a strong position, with a compound annual return of 22.1% year-to-date for the S&P 500. Additionally, we are starting to see strong performance from other areas of the market such as small companies, international markets and real estate, which have all posted double-digit growth so far in 2024. These gains are occurring despite key uncertainties hovering in the background, which include geopolitical uncertainty in the Middle East, a stronger than expected labor market and the upcoming U.S. presidential election. This election is top of mind for many investors, who wonder whether this event should impact their portfolio allocations. Research from the Vanguard Group reveals three important facts about how past presidential elections over the last 160 years have influenced markets: 1. No significant difference in performance occurs within a 60/60 stock-bond portfolio between Democratic and Republican administrations 2. Because positive years of performance greatly outnumber negative ones, staying invested in a diversified portfolio may be better than moving to cash 3. Markets don't care who is president, so elections should not influence your investing decisions Learn more in this week's #DynamicMarketUpdate: https://lnkd.in/eGQdmnEb #election #stockmarket #assetallocation #performance

Our hearts go out to all those affected by Hurricane Milton in Florida. We're deeply concerned for the safety and well-being of our friends, family, colleagues and countless others who were in the path of this storm. We hope everyone is still taking appropriate precautions and staying safe. If you need assistance or support don't hesitate to reach out. Check out the FEMA website for updates and information about the recovery and available assistance: https://lnkd.in/eGqFtDNp

In this week's Dynamic Bond Market update, Fixed Income Trader and Portfolio Manager William Smith analyzes the Fed's first rate cut in nearly four years. Beginning the easing cycle with a bang through a 50bps cut, the Fed appears firmly committed to future policy easing. In reviewing past rate cutting cycles, we find support in favor of fixed income strategies as well as key findings, including: > Following the trajectory of interest rate cuts is more important than perfect timing > Cash and short-term fixed income investments tend to underperform > Fixed income historically performs well across easing cycles Learn more about the performance of and potential for the bond market in this week's Dynamic Bond Market Update: https://lnkd.in/enq87f5v #federalreserve #ratecut #bondmarket #assetallocation #dynamicinvesting

Traditional financial and economic theory--such as Modern Portfolio Theory--holds that investors make rational decisions after considering a wide variety of information. However, behavioral finance research holds the exact opposite, notes Lucas Felbel, CIMA®, director of portfolio services at Dynamic. In his most recent post, Felbel analyzes the most common investor biases and how they can derail investors and their advisors, making it hard to reach investment goals. Both investors and their advisors are best served when they have a strong relationship based on trust and create a goals-based investment strategy. Logically connecting potential behavior--like panic selling during market volatility--with investment goals can keep investors on track for a successful investment journey. Learn more in this Dynamic Portfolio Perspective: https://lnkd.in/exkUWQv6 #dynamicportfolioperspectives #assetallocation #diversification #behavioralfinance

If you were hoping for good news with the potential to create positive momentum in the markets, this week likely more than met your expectations, writes Konstantin (Kostya) Etus, CFA, chief investment officer at Dynamic Advisor Solutions. In addition to a surprise double rate cut, new economic forecasts, updated interest rate projections and positive and market-beating economic news all support narratives around a resilient consumer, stability in the manufacturing sector and a potential turn-around in the housing market. During past rate cut cycles, lower rates have generally been a tailwind for stocks, bonds and real estate. Accordingly, trends from these past cycles are informative of how this cycle might play out: > Positive for stocks: Rate cuts tend to be positive for company growth > Positive for bonds: Rate cuts have an inverse effect on bond prices, which rise in this environment > Positive for diversified portfolios: Rate cuts are positive for both stocks and bonds, which is an added boost for diversified portfolios Read more in this week's Dynamic Market Update: https://lnkd.in/ev7YrnwS #dynamicmarketupdate #interestrates #diversification #federalreserve

When markets are volatile, investors can get jittery. That can result in ill-advised decision making that can put investment goals at risk. This is where the wisdom of behavior finance can help. When investors and their advisors understand how biases can undermine sound decision making, they are better prepared to deal with them. In this week's #DynamicPortfolioPerspectives, Lucas Felbel, CIMA® analyzes how investors and their advisors can leverage this knowledge to maintain investment discipline. Check out our blog post at: https://lnkd.in/exSaNaxv #behavioralfinance #investwithintention #buildtrust

The increasing volatility and economic uncertainty shouldn't deter investors from sticking to principles such as diversity that have the potential to protect them from downside risk, notes Konstantin (Kostya) Etus, CFA in this week's Dynamic Market Update, He reviews the favorable trends of falling inflation, broadening corporate earnings and a balancing labor market as part of a favorable first eight months of economic and market performance. Key takeaways as the end of the third quarter nears include: > While market volatility can create pain for investors, behavioral finance is a potential cure > Concentration risk is particularly high, which can be better understood with the math behind loss and gains > Although uncertainty can lead to fear, diversification is a potential remedy. Learn more about the performance of the markets and some perspectives on handling volatility and uncertainty in this week's Dynamic Third Quarter Investment Insights: https://lnkd.in/eff_zSej #dynamicmarketinsights #stayinvested #diversification #behavioralfinance

As part of Dynamic Advisors Solutions commitment to service, a group of Dynamic employees teamed up to volunteer at Feed My Starving Children, a non-profit dedicated to eradicating hunger across the globe. By pitching in to pack meals designed to feed hungry children, our motivated employees made a difference in the lives of families in need. The efforts of 16 Dynamic employees, along with 52 other volunteers, resulted in 11,016 meals packed. That food will feed 30 children for one year in the Philippines. On this Labor Day, remember that your work is important and that there are ways that you can give back to make the world a better place.