PLAYING CHESS INSTEAD OF CHECKERS | CROUCH CONNECTION| November 2024
“PLAYING CHESS INSTEAD OF CHECKERS”
It’s been a while since our last newsletter, and I hope this note finds you enjoying your holiday. Our transition to the RIA world was more challenging than we had anticipated, but we have successfully made the transition and our office is returning to “normal”. While the pause in our communications was longer than anticipated, rest assured that behind the scenes, we’ve been actively monitoring markets, assessing opportunities, and making informed decisions to safeguard and grow your investments.
2024 has certainly been an exciting and interesting time to be an investor! The Presidential Election certainly is presenting notable shifts in global markets and economic policy. As your trusted financial advisor, my goal is to help you navigate the ever-changing economic landscape with confidence. In light of recent developments and market commentary, I wanted to share insights that could shape our investment strategy moving forward.
Attached, you will find a memo authored by Stephen Auth, Chief Investment Officer for Equities at Federated Hermes. Titled "Playing Chess Versus Checkers," it provides a compelling perspective on how strategic decision-making in economic policy may influence markets in the coming years. It highlights key areas such as tax policy, trade dynamics, regulatory changes, and labor market strategies, and how they might impact economic growth, inflation, and investment opportunities.
The memo reminds us that investing is often about anticipating second- and third-order effects—thinking several moves ahead, much like a chess game. This thoughtful approach aligns closely with the strategies we employ when managing your portfolio. Some takeaways from the memo include:
Tax Policy Effects: Lower tax rates can stimulate investment and economic growth over the long term, potentially creating new opportunities in value and small-cap equities.
Tariff Implications: While often perceived negatively, strategic trade policies might boost domestic production and economic growth.
Regulatory Shifts: Streamlining regulations could lower business costs and foster innovation, benefiting certain sectors of the market.
Geopolitical Considerations: Diplomacy and strategic positioning may reduce economic uncertainty and free resources for more productive uses.
The insights in this memo underscore why we remain focused on balancing risk and opportunity in your portfolio. By staying attuned to both market fundamentals and broader economic trends, we aim to position your investments for growth while mitigating potential risks.
I encourage you to read the attached memo and reflect on its implications. If you have any questions or would like to discuss how these perspectives might influence your portfolio, please don’t hesitate to reach out.
When you call our office, you’ll be greeted by a fresh, friendly voice ready to assist with your administrative needs. Following the transition, Kim and Kay decided to retire, and we are thrilled to welcome Ann-Marie Jernigan as a delightful new member of our team.
On this Thanksgiving, we are reminded that true wealth lies in the relationships we nurture, the goals we achieve together, and the gratitude we share along the way. Thank you for allowing us to be part of your financial journey. Wishing you and your family a season filled with abundance, joy, and meaningful moments.
Happy Thanksgiving!
Sincerely,
CEO and Chief Investment Officer
Aspen Grove Asset Management
Buffett Quote:
“I try to buy stock in businesses that are so wonderful that an idiot can run them because sooner or later, one will.
Warren Buffett
"Article reprinted with permission by Federated Hermes Investors. The statements and opinions expressed in this article are those of the author. AGP Franklin, LLC cannot guarantee the accuracy or completeness of any statements or data. For current AGP Franklin information, please visit the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with AGP Franklin’s CRD # 331699. This reprint is supplied by [AGP Franklin. This reprint and the materials delivered with it should not be construed as an offer to sell or a solicitation of an offer to buy any product mentioned in this reprint."
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