Staying the Course

Published: September 6, 2015

Since mid-July, U.S. and global stock markets have retreated and been subject to greater volatility than they have experienced in the recent past. There are a number of international factors contributing to this unsettled environment. Events closer to home have served to further stoke investor fears. The VIX®, a measure of the market’s expectations regarding near-term stock market volatility, is at its highest level since 2012, indicating that a heightened level of volatility may be here for a while.

We take a long-term view while carefully watching short-term development

At Klingenstein Fields Advisors, we expect volatility will continue given economic uncertainty and the U.S. election cycle. We maintain our view that investing primarily in equities offers the best opportunity for long-term growth. Therefore, our strategic asset allocation ranges remain unchanged. However, we are carefully positioning client portfolios to favor investments that may be more resilient to global pressures.

We continue to keep a close eye on the markets, monitoring both what we believe to be short-term noise in the market, as well as looking for potential long-term fundamental shifts in market behavior. We begin with a strategic asset allocation, building thoughtfully diversified portfolios designed to help you withstand the ups and downs of the markets. At the same time, we make tactical adjustments where warranted in order to take advantage of short-term opportunities or avoid unwarranted risk.

We encourage you to contact your personal Wealth Advisor at 212.492.7000 with any questions you may have regarding current markets or your portfolio. We believe communication is critical to an enduring relationship. As always, your Klingenstein Fields Advisors’ team is ready to serve you, whatever your needs may be.

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.