Friday, September 13, 2013

Investment update: Seeing a potential opportunity in emerging markets

Last week, we recognized a potential long-term opportunity in emerging markets…and we seized it.

A price gap—now almost a 50 percent difference—has grown between U.S. and emerging market equities and bonds.

At this point, we believe that emerging market equities and bonds are undervalued…and therefore present a long-term investing opportunity.

Sensing this, we took immediate action, adding emerging market exposure to our Paid to Wait®, Foundation, and Lifestyle Income Bond accounts.

For our Foundation accounts, this move was in addition to our normal rebalancing schedule, as we felt we needed to act quickly and proactively. We will perform the full rebalancing on this account as scheduled.

Also, for those clients with Wade Financial Group-managed 401(k)’s, we performed our regularly quarterly rebalancing a month early, so that we could increase exposure to available emerging market funds.

This move exemplifies our Contrarian Value (ConVal®) investment approach, with its focus on identifying and purchasing undervalued assets as we invest with a long-term view.

We continue to eye potential opportunities in emerging markets and elsewhere, and will continue to research and seize potential investing opportunities on your behalf.

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