Roundtable: How do your client portfolios differ today compared with 12 or 24 months ago?
- July 1, 2022: Vol. 9, Number 7

Roundtable: How do your client portfolios differ today compared with 12 or 24 months ago?

by contributing executives

Sidney Browning, managing partner and CEO, Integras Partners

We have always included real assets, primarily in direct real estate, for client goals projected seven to 10 years in the future. In the fall of 2021, the factors of inflation, monetary tightening by The Fed, and overvalued stocks led us to replace 20 percent of most clients’ stock allocations into additional real estate exposure. We did this with a mix of NAV REITs, interval real estate funds, and private placements to provide cash flow, appreciation and flexibility.

Brian Dudley, senior vice president, Secure Asset Management

Our firm actively manages various equity and fixed-income models for advisers and their clients. With the impacts of the COVID pandemic, continued geopolitical unrest, and rising interest rates, we positioned our models in response to markets — adjusting allocations in holdings such as energy, oil/gas and logistics, and focused on equities with strong fundamentals. In fixed income, we shortened duration exposure by eliminating intermediate and long-term holdings. By employing a fundamental and technical approach to securities selection within the models, we aim to provide advisers and their clients portfolio stability and performance in line with portfolio objectives and client risk profiles.

Todd Henderson, president and CIO, Phillip Todd Wealth Advisors

Regardless of whether we face stagflation or disinflation, we continue to follow the data. One of the main characteristics of slowing inflation is peaking commodity prices. We’ve seen disinflation in parts of the commodity market, such as lumber and soft agriculture. With decelerating growth and inflation, energy is not the place to be from the long side. Has crude oil capitulated? No, it has not. Waiting and watching here is not a bad idea. The price has obviously ramped up this past week. From a macro investing perspective, we continue to be short on U.S. equity markets, as growth will continue to slow, and inflation will peak and gradually decelerate. The U.S. dollar continues to gain strength, as expected, and the bond market has shown its inversion tendency. Hard assets, such as gold, have become a hedge in this market. We remain decidedly short on equity markets in Europe, such as Germany.  We also see being short the euro against the dollar as a currency hedge.


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