How 11 Advisors Are Shifting Portfolios Now (or Not): Advisors' Advice

During times of market duress, Clarfeld Citizens Private Wealth remains steadfast and committed to our approach of long-term strategic asset allocation and broad diversification. Accordingly, we are not making rash adjustments to client portfolios, as we’ve found that visceral reactions to financial market volatility rarely reward investors. While year-to-date headline market declines are large, returns generated for the last three years have been well above historical norms.

Further, pullbacks and corrections allow for market excesses to clear. We believe that market drawdowns coupled with the sharp rise in interest rates set up more attractive valuations and prospective returns, despite how uncomfortable the current environment may feel.

While calling tops and bottoms in markets is a fool’s errand, yields, valuations and forward returns serve as meaningful guideposts to discern stability and potential sentiment shifts from investors. We believe this dynamic will continue to unfold over the coming months. Through proactive client outreach, we are rebalancing clients towards their target asset allocations while confirming evolving financial planning needs.

Within client portfolios, we are maintaining a close dialogue with our investment managers to understand their outlook and positioning while diligently evaluating opportunities to implement tax-loss harvesting, where appropriate. Generally, this is done to offset future gains currently unrealized within portfolio positions.

— Matt Ruffalo, head of investment solutions at Clarfeld Citizens Private Wealth