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Meet a Strategist with Auour Investments – ETFdb.com

Meet a Strategist is a weekly feature where Evan Harp talks to different strategists about how their firms are responding to the current moment. This week, he sat down with Joseph Hosler, managing principal at Auour Investments.<…….

Meet a Strategist is a weekly feature where Evan Harp talks to different strategists about how their firms are responding to the current moment. This week, he sat down with Joseph Hosler, managing principal at Auour Investments.

Evan Harp: What’s keeping your clients up at night?

Joseph Hosler: I think the economy is the thing that’s keeping everybody on edge. It’s the idea that the Fed is walking this tightrope between keeping the economy growing and taking care of inflation. That is where clients are most concerned, and then also how the economic outcome from the Fed’s actions will bleed into the financial plan that advisors have set up for them.

I think for our clients, we’ve done a pretty decent job. We came into this year with a very conservative tilt of 25% to 40% cash across our equity and fixed income products. We warned people that we were concerned about the risk attitude of the market and the creeping up of risk aversion and how that might impact portfolios. I think they feel a little bit more in control based on being warned about it and defensively positioned.

Now, of course, no one likes to see the account values drop, but to have been warned of it and to have produced a lower level of drawdown at a lower level of volatility, I think has kept them in the game and feeling as though their financial plan is still intact.

Evan Harp: Do you have any recent changes in your allocations?

Joseph Hosler: We came into the year very defensive, so we really haven’t changed much over that period. I would say that, on a short-term basis, given some recent dynamics, we think that the fear became too extreme too fast. We could see potentially a move back into investment markets across our strategies, reducing the tactical cash that we hold. But at this moment, the changes within the market are something that we see as a tug-of-war between the extremes — people that think the world is going to come back to life just as it did after COVID versus those that think we’re in front of a deep decline. That tug-of-war between those two outlooks is causing us to temper our portfolios, and not overreact in a way that whipsaws clients’ portfolios.

Evan Harp: What do you think of the market right now?

Joseph Hosler: Well, as I said, it is a tug-of-war between the two extremes. People either want to be fully invested, hoping risk assets recover or those that want to be hyper defensive, …….

Source: https://etfdb.com/etf-strategist-channel/meet-a-strategist-with-auour-investments/

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