Charles Schwab • Annual Research Project • Blackstone • Total Return
Monthly AIRE Perspectives – May 2024
Dear Friends and Valued Clients,
Please see below for The MAP – Monthly AIRE Perspectives for this month.
AIRE Advisors and Charles Schwab
We would like to let you know that AIRE Advisors has now signed on with Charles Schwab as a custodian! Although our relationship with Fidelity has only grown stronger since we started our firm almost 4 years ago, we wanted to offer clients more choices as to where their assets are custodied. With the recent completion of Schwab’s merger with TD Ameritrade, we can now offer clients a choice for the top 2 custodian firms in the industry. If you have assets residing at Charles Schwab, give us a call to discuss how we can help.
Annual Research Project Finally Completed!
Our annual research project, which involves a review all of our asset classes and investment choices within those asset classes, has just been completed after almost 6 months! While this project usually lasts only one to two months, this year it took much longer, due to the added research on private markets. It is our belief that a properly diversified portfolio should include both public and private markets, and we have spent the last six months – on your behalf – meeting with hundreds of companies of all kinds, in a search to optimize portfolios with diversified core holdings. As part of this research, we have removed commodities as an asset class in our public portfolios. The reason we had commodities in our portfolios was to diversify from stocks and bonds, but given our ability to do that with private markets in a more efficient manner, we decided that this category was no longer needed. We will report this research to you over the next month or two and discuss suggestions and changes for each client on a customized basis.
Blackstone Updates
Blackstone has recently been in the news – first, due to liquidations last year due to the real estate market, and second, due to reports about their valuation process. Here is their response to those reports. Please contact us at any time to discuss further!
It’s About Total Return – Not Just Yield!
For as long as I can remember, clients have asked me about buying high dividend stocks. Yet, it is important to note that, just because a company pays a high dividend, it does not mean it will provide a higher overall return. Markets fluctuate over periods of time, with dividend stocks outperforming for certain periods, then underperforming for other periods. This fascination chart from Dimensional shows that, over the last 10 years, dividend stocks had generally lower returns than growth stocks or blended stocks. The lesson here is not whether one is better than the other, but that it is beneficial to own both types. This is one of the main premises behind asset allocation.
Proceed with Caution Focusing on Yield | Dimensional Click Here
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