Fundamental Choice Portfolio Updates
02/14/2023
Dear Fundamental Choice Portfolio Client,
Let me being by expressing our appreciation for your confidence and trust in working with your financial assets at our group!
The year of 2022 had many cross currents, but the general theme was inflation hit a peak of 9.1% and federal fund rates were in essence at 0% which I would classify as atypical.
Then mid-year the Federal Reserve began aggressively increasing rates for overnight funds to approximately 4 ¾%. Inflation has fallen to 6.5%. Why is this backdrop important? The trend is going back to what I would call a “normalized climate”. Most of us can remember when inflation was 2-3%, interest rates were 4%, mortgages were at 5%, etc. I suggest 2023 is going to be a transition year back to a “normal climate”.
Is the federal reserve going to achieve an inflation rate of 2% in 2023? Only time will tell, but my guess is likely 3%. Will the Federal Reserve stop increasing rates? Probably one more at the next meeting, then a pause. Why is a pause important? It is important because it allows consumers, business owners, municipalities, and government entities to adjust to the new normal.
So how does this relate to your fundamental choice portfolio? Attached is the most recent snapshot of your fundamental choice portfolio, as of 2/13/2023.
Currently, we are holding a cash level of approximately 10%. The 10% allows us to rebalance and, if we see opportunities, we can direct cash to a new opportunity.
We are overweight in consumer discretionary equities, at approximately 22% and consumer staples at approximately 8%. The specific holdings in this area are:
Amazon 4.16%
Marriott 2.97%
Starbucks 3.82%
McDonalds 2.81%
SYSCO 1.90%
Tesla 2.55%
Pepsi 3.89%
Constellation Brands 3.98%
Consumer Discretionary Select Fund 4.20%
If inflation is going to be falling, that will free up cash from non-discretionary items such as rent, housing, heating, food, etc. to discretionary items reflected by these companies in your portfolio.
We did maintain our position in the information technology and technology area at approximately 14%. Our largest holdings are:
Apple 4.19%
Microsoft 4.15%
Vanguard Info Tech ETF 3.09%
iShares Technology Sector ETF 2.03%
Technology has been a consistent theme in our portfolio for its above average growth potential.
Another sector we own are the financials companies at 23%. The basic comment here is as people spend more, borrow more, and utilize electronic credit cards (Venmo, etc.) the movement of money allows financial entities greater margins. Thus, we believe these stocks will show appreciation over the longer term.
As we look to the fundamental choice portfolio, we are pleased with the rewards produced over the years. Your personal returns are shown on the portfolio summary attached.
Should you have any specific questions regarding the fundamental choice portfolio, your allocation, or any other items you wish to discuss please feel free to contact myself or our team members at Braun Wealth Management Group.
We wish you the best in 2023 and look forward to serving your investment needs in the longer term.
Sincerely,
Byron Braun
President
Senior PIM Portfolio Manager
Senior Fundamental Choice Portfolio Manager
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. No representation is being made that any account or transaction will or is likely to achieve profits or losses similar to those referenced. Any statements nonfactual in nature constitute only current opinions, which are subject to change.
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Portfolio shown is as of 2/13/2023 and subject to change. As Fundamental Choice portfolios are separately managed the
01/03/2022
Dear Fundamental Choice Portfolio Client,
As we begin 2022, we would like to extend our sincere appreciation for your confidence in working with your financial assets. 2021 had a multitude of cross currents - positive, neutral, and challenging. This summary will attempt to help you better understand the tactical approach the fundamental choice portfolio employs for you. I will discuss the representative account for the strategy we manage. For specifics due to inflows and outflows of cash to your own personal portfolio it may be slightly different, it may be a good idea to refer to your online access or your most recent statement for the exact percentages in your portfolio
At the beginning of 2021, the federal reserve maintained its policy for the most part throughout the entire year of low interest rates and providing liquidity to the system. Different components of the economy experienced spikes of inflation faced with supply chain issues facing those specific commodities as well as higher demand.
But when it is all said and done, net, net 2021 was a productive year for investors. As we look towards 2022, we feel it presents a multitude of opportunities and we will try our best to incorporate those into your portfolio.
Regarding the fundamental choice strategy as of Dec 31st 2021 our top holdings, as represented by a 4% or more position, are the following:
Microsoft (MSFT) 8%
Apple (AAPL) 7%
Amazon (AMZN) 7%
American Express (AXP) 5%
Coca-Cola (KO) 5%
McDonald’s (MCD) 5%
Pepsi (PEP) 4%
IShare Q’s (QQQ) 4%
Starbucks (SBUX) 4%
Sysco (SYY) 4%
Vanguard ETF Shares (VEA) 4%
We ended the year with an approximate cash position of 7% and during the year we added securities, reduced securities, and eliminated certain securities. They are as follows:
Stocks Added:
Sysco (SYY)
TJ Maxx (TJX)
Vanguard ETF Shares (VEA)
Ford Motor (F)
ARK Innovation (ARKK)
Disney (DIS)
Stocks Removed:
Facebook (FB)
Health Care SPDR Fund (XLV)
CVS (CVS)
Disney (DIS)
We do have the ability to overweight sectors, at present we are overweighting Information Technology, Consumer Discretionary and Staples and we also have the ability to underweight. For example, we have no utility positions in the portfolio.
Throughout the year we rebalanced the portfolio to reflect your personal cash needs added or withdrawn as well as rebalancing on-going to reflect the stated percentages of the portfolio.
If you have been a participant in the fundamental choice portfolio for more than two years, we believe you will find that once we find a candidate with a more consistent performance and adheres to our objective, we will remain invested in those holdings. If these companies appreciate in value, we will either pare back to the stated percentage, and direct to cash or new candidates, or we will allow the position to become a greater percentage by increasing the percentage allocation.
Some examples in this area of positions representing consistent earnings for the longer term are Microsoft, Apple, Coca-Cola, Pepsi, and Starbucks.
As we look toward 2022 with the new playbook shared by the federal reserve, we will probably experience 2 or 3 federal rate increases. We also may experience periods where inflation for specific commodities will either spike up or spike down. The federal reserve target for 2022 for the base rate of inflation is 2.6%. This represents a higher inflation number then in years past. We will also probably experience what I believe to be surprises, and they will most likely be on the supply chain front, enhancements to therapeutics regarding Covid, and surprises on the general strength of the economy. If these expectations are correct, you will probably see some changes to the portfolio in 2022.
We thank you very much for your confidence and allowing us to manage the fundamental choice portfolio as a component to your overall portfolio. If you wish to discuss in more detail the specifics of the portfolio or any more items feel free to contact us at your convenience. It is our intention to do our best to manage the fundamental choice portfolio in a tactical manner to help meet or exceed your objectives in the longer term. We thank you for your trust, confidence, and referrals.
We look forward to serving you investment needs in 2022!
Best Regards,
Byron R. Braun
President
Senior Fundamental Choice Portfolio Manager
The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. No representation is being made that any account or transaction will or is likely to achieve profits or losses similar to those referenced. Any statements nonfactual in nature constitute only current opinions, which are subject to change.
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Portfolio shown is as of 12/31/2021 and subject to change. As Fundamental Choice portfolios are separately managed the individual client account holdings will vary, perhaps significantly, from those listed on this factsheet. Information, such as industry sector allocation percentages and market capitalization allocation percentages, will also vary from the information listed on this client update.
09/21/2021
Dear Fundamental Choice Portfolio Client,
Let me begin by sharing our thoughts for your personal safety during this Coronavirus climate. At our office, approximately 3 weeks ago, we instituted all reviews and appointments via conference calls. We receive documents via secure emails or traditional mail. This will allow our practice to be as healthy as possible. Our phones are open and answered promptly, messages are returned. Quality service is paramount during this time. If you have any questions regarding any component to your portfolio or wish to move assets to our practice, please feel free to let us know.
Regarding your Fundamental Choice Model portfolio (for this discussion please check your portfolio online or statements). The model portfolio will mirror closely as possible to your own portfolio, it may be impacted by additions or withdrawals.
We are deploying a tactical approach allowing flexibility to overweight / underweight industries and individual securities / ETFs. The ability to raise cash, if we are cautious, cash reserves may be 25%. Also, the ability to pare down or pare up sectors and/or securities.
This summary is longer than in past, but I want to explain what paring down and paring up means. A hypothetical would be: we own XYZ Corp at a level of 4% in the portfolio. Paring down means if we are cautious or wish to take a profit but still like the company for the longer term, we will pare down to 3%, 2% or even 1%. This allows us to raise cash and/or re allocate to another index or stock. During this most recent climate we have pared up and down various times. As of April 2nd 2020, our model portfolio had cash levels of approximately 10%, down from approximately 20%. During this climate volatility is extreme, and as we look to the future the economy will probably be in a recession due to layoffs and furloughs. The backdrop continues to be inflation and interest rates are in check. In fact, interest rates are at all-time lows. As we navigate through this situation low interest rates will allow the consumer and businesses to borrow at low levels allowing dollars to be utilized elsewhere
Another thought, very simple but true, possibly in your neighborhood you have seen what I’ve seen: whenever the weather is 60° or higher hundreds of people are out walking their dogs, playing ball, or just out period. Please take this to another level and expand it to all of those whose haven’t had a dinner in a restaurant in months or haven’t visited their hairstylist, doctor, dentist, shopping, or activities due to government mandates. In my case, I miss socializing with my close friends, participating in my community involvement activities, and being with family. How does this equate to the economy? I believe there is going to be a profound demand for things and activities currently taken away from us. Simple things such as having a burger at Applebee’s. It sounds over simplified, but multiply this by many millions, equating to a significant rebound. Thus, the recession anticipated will probably be short lived. Coupled with the financial help from the CARES legislation for small business owners, homeowners, etc., allowing one to navigate through this period.
One of my clients shared with me the other day that I see things from the glass half full and empty. I am an eternal optimist. I believe America is the best place to live and work. America makes it through these challenging times and I believe Americans will find a way to beat this virus. Whether it be science, therapeutics, vaccines, social distancing, or American pulling together in a unified effort to make it through this difficult time.
So, as we move forward you will notice new names in the portfolio and you will probably see new additions. The underlying theme is we will keep in touch with the basic premise of the fundamental choice portfolio i.e. broad allocation through a variety of industries, sectors combined with individual securities and indexes.
If you wish to talk specifics about the Fundamental Choice Portfolio feel free to email or call us and we will be happy to review your portfolio. You can go online and review the allocations of your portfolio or you can look at your printed statements.
We thank you very much for the confidence and trust and look forward to serving your investment needs in the longer term. I will leave you with a quote from Warren Buffet, “If you wait for the robins… spring may be over” (2008).
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and in the aggregate may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
04/19/2021
Dear Fundamental Choice Portoflio Client,
On behalf of our practice, we would like to extend our appreciation for your confidence in working with your financial assets. We would like to share an update on your fundamental choice portfolio.
We will be discussing specifically the model portfolio and if you could please refer to your personal attached summary and/or your most recent printed / online statement for specifics.
To begin with, there has been much change since we last shared our thoughts. As I dictate this correspondence the CDC has announced approximately 70 million Americans have had both vaccine shots. The pace of vaccinations in this country is expected to continue with the possibility of 125 million or more fully vaccinated by mid-summer.
During this process the federal reserve has maintained their low interest rate policy allowing consumers, corporations, municipalities, and governments to issue bonds and borrow funds at historic lows.
This unique combination of low interest rates and the gradual opening of the United States and global economies is laying the ground work for an impressive rebound of the economy in the second half of this year.
As one reviews economist expectations for the second half can range from 6% to 8% in GDP which hasn’t been seen since the early 80’s.
Regarding your fundamental choice portfolio, as of April 12, 2021 the portfolio has approximately 7% in cash, and the top 10 holdings are:
Microsoft, Apple, Amazon, Facebook, Pepsi, Coca Cola, McDonalds, Raytheon Technologies, and Emerson Electric
We are incorporating, what we call, a “barbell approach”. On one side of the barbell, we have traditional growth companies like Microsoft, Pepsi, and Apple, on the other side of the barbell we have incorporated companies that will be beneficiaries of where the economy will go to as we reach “herd immunization” in the U.S. These names include Marriott, McDonald’s, CVS, American Express, PPG, Constellation Brands, SYSCO, and 3M.
The concept, which is oversimplified but true, as Americans begin to return to their normal lives and as states reduce restrictions on our society people will travel more, eat more, drink more, and spend more. Thus, the robust expectations in the second half of this year because you have this unique combination, not only in the U.S. but on a global basis. Truly rare & remarkable.
The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. No representation is being made that any account or transaction will or is likely to achieve profits or losses similar to those referenced. Any statements nonfactual in nature constitute only current opinions, which are subject to change.
For specifics, please review your fundamental choice portfolio. We do appreciate your continued confidence in working with your assets at Braun Wealth Management Group and we look forward to serving your investments in the longer term. If you would like to merge other assets at our practice, please let us know.
We hope you find this update to be beneficial. Should you have any questions please feel free to contact us.
Best Regards,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
[email protected]
8/20/2020
Dear Client,
I hope your summer has been a good one given all the different obstacles and challenges in our day to day lives due to the Covid-19 virus. Attached is a summary regarding your personal fundamental choice portfolio as of August 10th 2020. In this discussion, I will discuss the representative account for the strategy we manage. For specifics due to inflows and outflows of cash to your own portfolio, it may be slightly different, so it would be a good idea to refer to your online access or your most recent statement for the exact percentages in your portfolio.
First, as we look forward to the end of 2020 and the beginning of next year virtually every week there are positives regarding therapeutics and advancements in the different stages of the many vaccine candidates. It is my hope as we go into the end of the year it will become clearer as to the approval for vaccines which would then make 2021 much better for our society.
All through this the backdrop of low interest rates virtually at zero and low inflation provides an excellent foundation as America and the world opens up again for business.
Regarding the strategy, we did encounter a challenging climate but I would like to highlight some of the general themes and specifics we implemented.
As of 8/10/2020, our top 5 holdings for the strategy are:
• Microsoft (MSFT)
• Apple (AAPL)
• Amazon (AMZN)
• Facebook (FB)
• Verizon (VZ)
If you recall we have the ability to overweight sectors and we are overweighting the information technology sector. We did incorporate some re-balancing during the month of July and we did continue to pair back positions as they appreciated. Paring back means retaining ownership but reducing the percentages of the holding allowing us to rebalance to other holdings currently owned or add brand new candidates to the portfolio.
For the representative account for our strategy, in mid-July we sold all shares of AT&T. We also liquidated all shares of the ETF (DVY) which was the I-shares Dividend index we thought those assets could be better placed into other areas. In late July we did reduce our exposure in Apple Computer (AAPL) by 2% as it was close to 10% of the portfolio. Also, we pared back by 1% our ownership of Facebook (NYSE – FB) this was primarily for the same reason, it is approaching a higher percentage level. I still like Facebook for the longer term and it represents an excellent beneficiary as advertising comes back given the growth of the domestic and global economies that is envisioned for 2021. Along the same theme we reduced the holdings by 1% of Microsoft (MSFT) and the Q’s (QQQ). This represents the ability to direct those funds somewhere else to broaden the footprint of the account.
If you have been a participant in the fundamental choice portfolio for more than 1 or 2 years you will notice once we find a candidate with performance that is consistent with our strategy objective, we will remain invested in these holdings. If these companies appreciate in value we will pair back, and either direct it to cash or new candidates. With this in mind, we did increase holdings into Verizon (VZ) by 1% to 5%, we believe it represents an excellent candidate for the ever-changing telecommunications that we are about to see on a global basis. We also introduced a new candidate McDonalds (MCD). McDonald’s represents for the strategy a 3% allocation. In regards to introducing a new candidate, we usually introduce it at a 3% level and if it proves to be a solid candidate, we will increase it to higher percentages over time. The remaining dollars were rebalanced to the other holdings and we currently have about 11% in cash reserves (to be directed as opportunities occur).
As we look forward from now and to what I call “vaccine day” there also is a major election and during major elections there is more volatility, good, bad, and indifferent. Thus, the reason for the 11% cash position allowing us to take advantage of any opportunities between now and the election.
We thank you very much for your confidence and allowing us to manage the fundamental choice portfolio as a component to your overall portfolio. If you wish to discuss specifics or talk about adding to the fundamental choice or bringing assets over from other firms, that we can share the same type of approach, please let us know and we can talk specifics. We hope you have a great remaining part of your summer and thank you very much for your confidence.
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
[email protected]
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Information is current as of 08/10/2020 and subject to change. As Fundamental Choice portfolios are separately managed the individual client account holdings will vary, perhaps significantly, from those described above. Information, such as industry sector allocation percentages and market capitalization allocation percentages, will also vary from the information listed. A client opening an account today, may or may not, be invested in securities or sectors based upon the percentages discussed in this document. For the most recent portfolio composition please contact your Fundamental Choice Portfolio Manager. The Top 5 Holdings list represents the largest percentage of holdings in a representative account of the style as of the date shown above and is subject to change without notice. The mention of specific securities is not a recommendation or a solicitation for any person to buy, sell or hold a particular security.
The PIM program is not appropriate for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000. We are only accepting accounts with a minimum size of $100,000.
4/13/2020
Dear Fundamental Choice Portfolio Client,
Let me begin by sharing our thoughts for your personal safety during this Coronavirus climate. At our office, approximately 3 weeks ago, we instituted all reviews and appointments via conference calls. We receive documents via secure emails or traditional mail. This will allow our practice to be as healthy as possible. Our phones are open and answered promptly, messages are returned. Quality service is paramount during this time. If you have any questions regarding any component to your portfolio or wish to move assets to our practice please feel free to let us know.
Regarding your Fundamental Choice Model portfolio (for this discussion please check your portfolio online or statements). The model portfolio will mirror closely as possible to your own portfolio, it may be impacted by additions or withdrawals.
We are deploying a tactical approach allowing flexibility to overweight / underweight industries and individual securities / ETFs. The ability to raise cash, if we are cautious, cash reserves may be 25%. Also, the ability to pare down or pare up sectors and/or securities.
This summary is longer than in past, but I want to explain what paring down and paring up means. A hypothetical would be: we own XYZ Corp at a level of 4% in the portfolio. Paring down means if we are cautious or wish to take a profit but still like the company for the longer term, we will pare down to 3%, 2% or even 1%. This allows us to raise cash and/or re allocate to another index or stock. During this most recent climate we have pared up and down various times. As of April 2nd 2020, our model portfolio had cash levels of approximately 10%, down from approximately 20%. During this climate volatility is extreme, and as we look to the future the economy will probably be in a recession due to layoffs and furloughs. The backdrop continues to be inflation and interest rates are in check. In fact, interest rates are at all-time lows. As we navigate through this situation low interest rates will allow the consumer and businesses to borrow at low levels allowing dollars to be utilized elsewhere
Another thought, very simple but true, possibly in your neighborhood you have seen what I’ve seen: whenever the weather is 60° or higher hundreds of people are out walking their dogs, playing ball, or just out period. Please take this to another level and expand it to all of those whose haven’t had a dinner in a restaurant in months or haven’t visited their hairstylist, doctor, dentist, shopping, or activities due to government mandates. In my case, I miss socializing with my close friends, participating in my community involvement activities, and being with family. How does this equate to the economy? I believe there is going to be a profound demand for things and activities currently taken away from us. Simple things such as having a burger at Applebee’s. It sounds over simplified, but multiply this by many millions, equating to a significant rebound. Thus, the recession anticipated will probably be short lived. Coupled with the financial help from the CARES legislation for small business owners, homeowners, etc., allowing one to navigate through this period.
One of my clients shared with me the other day that I see things from the glass half full and empty. I am an eternal optimist. I believe America is the best place to live and work. America makes it through these challenging times and I believe Americans will find a way to beat this virus. Whether it be science, therapeutics, vaccines, social distancing, or American pulling together in a unified effort to make it through this difficult time.
So, as we move forward you will notice new names in the portfolio and you will probably see new additions. The underlying theme is we will keep in touch with the basic premise of the fundamental choice portfolio i.e. broad allocation through a variety of industries, sectors combined with individual securities and indexes.
If you wish to talk specifics about the Fundamental Choice Portfolio feel free to email or call us and we will be happy to review your portfolio. You can go online and review the allocations of your portfolio or you can look at your printed statements.
We thank you very much for the confidence and trust and look forward to serving your investment needs in the longer term. I will leave you with a quote from Warren Buffet, “If you wait for the robins… spring may be over” (2008).
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and in the aggregate may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
6/25/2019
Dear Client,
Let me begin by expressing our sincere thanks for allowing us to manage your Fundamental Choice Portfolio. Fundamental Choice is a component to your allocation and represents a tactical approach.
Attached is your personal portfolio review. It will show top 10 holdings, allocation, and rates of return for specific time frames.
Besides sharing with you the positive experience we’ve had in the first half of 2019, I will review several changes in the last 6 months, and for specifics you can check your own portfolio statements.
Since January 1st we have either trimmed, reduced, or eliminated holdings. Our thought process concerning the outlook for interest rates not rising, and/or actually decreasing, I thought it was appropriate to reduce and eliminate some financial holdings. Including the XLF Financial index, JP Morgan and Bank of America. We want to own financials when rates are rising, giving banks the opportunity to enhance their margins. But if the reverse is occurring, it would be a good time to reduce the financial sector.
With the ongoing challenges in the emerging markets, we sold the EEM (the ishares Emerging Markets ETF). We also increased cash reserves during the first half of the year. At present, the model portfolio has 11% cash. Cash levels can be deployed for opportunities as they present themselves. We added new positions: CVS, Constellation Brands, the XLE (ishare Energy ETF). CVS merged with Aetna, yields over 3% from these price levels. Constellation Brands, it is one of the largest beverage companies in the world. With the ongoing expansion of beverage consumption, not only in the united states, but on a global basis, Constellation Brands gives us excellent opportunity in the consumer area.
Regarding XLE (ishare Energy ETF), with the possibility of an agreement on Chinese trade and/or expanding economies, energy will have a tendency to be consumed more, increase in price, or both, allowing companies within The XLE ETF to grow and a dividend over 3%.
Every now and then we acquire a security we’ve owned before, i.e. Restoration Hardware. With Restoration Hardware, appreciation happened quicker than anticipated. We’ve sold it for profits.
As we look forward the United States economy continues to grow, unemployment is below 4%, the Federal reserve is expected not to increase rates, in fact decrease rates, and I am hopeful there is some sort of agreement on the Chinese Trade front. This all presents opportunities for us to continue employing a tactical approach for your benefit in your Fundamental Choice Portfolio.
For specific edits / changes please review your own portfolio.
We appreciate your confidence in working with your assets. Should you have questions about this portfolio, other portfolios we manage for you, or if you would like to merge assets from other firms, we would be more than happy to discuss the process with you.
Hope you have a wonderful summer.
All the best,
Byron R. Braun President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of WeIIs Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an order to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy’s entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including sector weightings is as of June 30, 2019 and is subject to change.
3/6/2019
Dear Fundamental Choice portfolio participant,
As you are aware, we post updates for your Fundamental Choice portfolio on our website. The purpose is to give you our thoughts and for what our expectations are for the near term.
This past December was volatile and the portfolio ended the year with a liquid money market or cash at 4.3%. All of these statistics we will share are discussing the representative portfolio account and your portfolio it may be impacted by deposits or withdrawals. Please review your personal portfolio either online or with us directly.
The general markets are currently positive. We feel optimistic about a more reasonable Federal Reserve, and China trade negotiations moving forward. Other things such as positive job creation, and a GDP growth at 2.6% for the last reporting period. The markets have appreciated and one of the benefits of our approach is to have the ability to either what I call “scale back” or “back in”. As of February 28th, we raised the liquid money market cash levels approximately 13%. We raised cash two separate times January 9th and on February 13th.
As of 3/6/2019 the top 5 holdings by percentages are 6% each to Apple (NYSE-AAPL), and Microsoft (NYSE-MSFT), 5% allocation both to Facebook (NYSE-FB) are the Dow Jones Index (NYSE-DIA) and of course cash or the money liquid market at 13%. Their Total at about 35% of the portfolio. The 5 top industry sectors as of February 28th are Information Technology at 22.7%, Industrials 16.7%, Communication Services 14.7%, Financials 13.5%, and Consumer discretion at 9.4%. It is the intent of the portfolio to have broad participation in different sectors with the ability to underweight or overweight as evidenced by some of the aforementioned percentages.
As we look forward, interest rates, we believe, will be in check with maybe one more move by the federal reserve, continued optimism regarding Chinese negotiations, a growing economy, and job creation at a positive pace. During this process, we believe it is prudent to look at the portfolio and adjust accordingly.
We hope you have found this update to be beneficial to your overall planning, and should you wish to discuss your personal portfolio, please feel free to contact us at our office. We are looking forward to servicing your investment needs in the longer term. Have a great spring.
All the best,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
As each Fundamental Choice program account is individually managed, construction and ongoing management of portfolios may vary from those discussed in this Philosophy Statement. Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful.
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Portfolio shown is as of 03/06/2019 and subject to change. As Fundamental Choice portfolios are separately managed the individual client account holdings will vary, perhaps significantly, from those listed on this factsheet. Information, such as industry sector allocation percentages and market capitalization allocation percentages, will also vary from the information listed on this factsheet. A client opening an account today, may or may not, be invested in securities or sectors based upon the percentages shown on this factsheet. For the most recent portfolio composition please contact your Fundamental Choice Portfolio Manager. The Top 5 Holdings list represents the largest percentage of holdings in a representative account of the style as of the date shown above and is subject to change without notice. The mention of specific securities is not a recommendation or a solicitation for any person to buy, sell or hold a particular security.
8/8/2018
Dear Fundamental Choice Portfolio Client,
First of all, let me express our sincere confidence and appreciation in allowing us to manage your Fundamental Choice portfolio at Braun Wealth Management Group. The Fundamental Choice portfolio is a tactical approach with specific parameters.
In past updates, we have outlined some of those parameters but in today’s note I would like to talk about the ability to overweight and underweight. Overweighting and underweighting will allow us to achieve potential enhanced performance. At present, we are overweight Information Technology, Financials, and Technology.
Since our last update May 23, a variety of positive economic numbers have been released by the government. For example, the GDP for the second quarter rose 4.1%, the real personal income for the second quarter adjusted for taxes and inflation increased a positive 2.6% on top of a 4.4% rate n the first quarter. There are a whole multitude of positive economic numbers to share but to summarize the United States economy is in a growth mode, this is on top of all of the “noise” one is hearing about trade negotiations etc. It is my thought trade negotiations are a way of posturing by the current administration to achieve results desired.
The analogy I use is when one buys real estate if the home is listed at $500,000 most sellers will list their home at a higher price and most buyers are going to come in with their initial offer below asking price. Then the buyer and seller come together at a happy medium and a transaction is achieved. My guess is this is what is happening with the European Union, Canada, Mexico, and China.
The model portfolio for the Fundamental Choice registered period ending July 30, a net positive of 6.2% year to date. For your specific rate of return you can visit the online website or reference your personal paper statement.
Since May 23 the markets moved sideways and we positioned for rewards so there was not much activity. We did add in the amount of 4% Royal Caribbean (RCL-NYSE). This is a holding owned in the past with much success. In Royal Caribbean’s case, because of rising energy prices the stock did indeed correct from a high of $135 a share and the initial entry point at $108.59 per share (for specifics please check your own activity) and in our judgement represents an excellent reentry point in the ever-expanding global tourism. In order to add Royal Caribbean (RCL-NYSE) we did pair back 1% each in the following holdings: Facebook (FB-NYSE), Pepsi (PEP-NYSE), Financial Equity Index (XLF-NYSE), Dow Jones Dividend Index (DVY-NYSE).
As we look forward to the final quarters of 2018, my guess will be noise regarding trade relations etc. will diminish due to some of the agreements being signed thus lifting those clouds off the market allowing the real economic positive numbers we are experiencing to show their benefits allowing the general stock market to appreciate.
We thank you very much for your trust and confidence in our abilities and if you should have any specific questions for your portfolio or would like to merge or transfer assets to our firm to experience the multi approach we incorporate for our clients please feel free to contact us. Have a great rest of your summer.
My best,
Byron Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
5/23/2018
Dear Fundamental Choice Portfolio Participant,
We would like to thank you for your continued confidence and trust in allowing us to manage assets with our Fundamental Choice portfolio. Much has happened since our last update on March 8, so I would like to first begin with reviewing some positives.
Through the last round of quarterly earnings reports, the average publicly traded corporation reported an increase of approximately 23% in earnings versus the same period last year. Much analysis has been done and if one takes out enhancements due to tax reform those earnings have risen 17%. In either case, this is a remarkable achievement! Secondly, the global synchronization of growth is continuing and third, the Federal Reserve is staying close to expectations by increasing the Federal funds rate by 2 or 3 more times the remainder of 2018.
As an overlap on the political front negotiations with China on trade, Mexico and Canada on NAFTA, upcoming summit with North Korea have clouded the positives in the economy. During this time frame, volatility has been intact and we have tried our best to navigate through volatility and as of this print date May 16, 2018 the model portfolio has appreciated a positive 2.6%.
One of the important components in this process with the Fundamental Choice approach is we have the ability to rebalance portfolios as positions are either added or deleted. Specifically, on April 27 in the portfolio, Verizon (NYSE-VZ) was trading fairly close to their 52 week high, we decided to sell one half of the position from 6% to 3% and AT&T (NYSE-T) was trading at towards lower end of the 52 week time frame with an approximate 6% dividend. We directed the 3% to AT&T (NYSE-T). We rebalanced the entire portfolio, rebalancing in my opinion, is one of the more powerful contributors to enhance portfolio performance. We rebalanced positions back to their original targets for Pepsi (NYSE-PEP), Bank of America (NYSE- BAC), United Technologies (NYSE-UTX), Emerson Electric (NYSE-EMR), TRow Price (NYSE-TROW) and Microsoft (NYSE-MSFT).
On May 14th, due to the proposals by the administration to look seriously probably for the first time in recent history about prescription prices. This will take into account domestic and international pricing, research and development, cost and recovery, and how the government bids out pharmaceuticals etc. It’s been my experience for over 40 years when you have a potential of the government changing the groundwork in an industry, there will be clear winners and clear losers of which its virtually impossible to figure out who they are ahead of time. Thus, we decided to sell our entire position of JNJ (NYSE-JNJ) and add a 3% position to PPG Industries (NYSE-PPG). PPG is an industrial and has been in the Fundamental Choice portfolio two separate times, both profitable. PPG gives a reasonable dividend of 1.7%, participates in the continued global expansion and represents an excellent opportunity in our judgement. At the same time, we again rebalanced the portfolio back to the original parameters and increased holdings in IShares Financial Index (NYSE-XLF) also Pepsi (NYSE-PEP) and the basic materials index (NYSE-XLB).
In summary, the model portfolio has appreciated approximately 2.6% (please check your portfolio online for specifics) and we are well positioned we believe to participate as these international events that I mentioned earlier will subside in the next ensuing 3 months or so. We do have in cash 5% and a broad-based portfolio participating in 9 different sectors, overweight in financials and information technologies.
Should you have any questions concerning your Fundamental Choice portfolio or any other item you would like to discuss, please feel free to call us at (260)637-6000. Wishing you the best for a great summer!
All the best,
Byron Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
3/8/2018
Dear Fundamental Choice portfolio participant,
I’d like to take this opportunity to express our appreciation for your confidence and trust in working with your assets at our firm. As you know, a portion of your portfolio is being managed through our fundamental choice model.
There are specific parameters regarding the portfolio and to name a few, we cannot have cash levels higher than 25%, all securities in the portfolio have to be followed by Wells Fargo Advisors or their correspondent firms, at least one of those research organizations must have an attractive recommendation, it can be individual securities and/or ETFs, must have at least five sectors, and we have the ability to underweight/overweight sectors.
Our cash levels are now at 10%, and to review some of the activity since we last shared our thoughts. Late November, we sold L Brands (NYSE-LB) for a profit based upon the turnaround, liquidated Starbucks (NYSE-SBUX) for profits reflecting concerns from domestic competition. Sold shares of Nucor (NYSE-NUE) reflecting, in our judgement, an over valuation and directed those proceeds from these three liquidations to cash.
In late December, we added Microsoft (NYSE-MSFT). Microsoft, we believe will be an excellent addition to the portfolio reflecting accelerated earnings primarily due to their cloud-based businesses and excellent management. At present a 6.5% allocation.
Late January, we liquidated our positions in CVS (NYSE- CVS) and Walgreens (NYSE-WBA). Honestly there are too many implications from disruptors to this industry the largest one being Amazon (NYSE-AMZN) so we thought it would be prudent to walk away. We also liquidated positions in Met Life (NYSE-MET) and deployed an additional 1% to the Emerging Market ETF (NYSE-EEM), 1% more to Microsoft (NYSE-MSFT), increase 1% to the Financial Equity ETF (NYSE-XLF).
The first week of February during the market’s corrective phase added another 1% to Johnson and Johnson (NYSE-JNJ) and the Financial Equity ETF (NYSE-XLF).
Volatility is back and through your fundamental choice portfolio we will attempt to navigate through these times. At present, besides 10.3% in cash, we do have an overweight in the financial sector with a 20% weighting, 4% to JP Morgan (NYSE-JPM), 6% to Financial Equity ETF (NYSE-XLF), 7% to Bank of America (NYSE-BAC) and 3% to T Rowe Price (NYSE-TROW), an overweight in Information Technology with 18.5% of which 5.5% Facebook (NYSE-FB), 7% Apple (NYSE-AAPL), and two ETFs 3% each: Vanguard (NYSE-VGT) and the Technology Sector ETF (NYSE-XLK). Other holdings are Amazon (NYSE-AMZN), Pepsi (NYSE-PEP), Johnson and Johnson (NYSE-JNJ), Industrials: United Tech (NYSE-UTX) and Emerson Electric (NYSE-EMR), telephone service: Verizon (NYSE-VZ), the Dow Jones ETF (NYSE-DIA) itself 5%, Dividend ETF (NYSE-DVY) 4%, and a 5% weighting in materials with ETFs NYSE-IYM and NYSE-XLB.
As we look toward the future, the economy is still we believe in a good state. Expanding in fact accelerating; unemployment is at multi-decade lows, energy prices are relatively stable, the consumer is strong, and we have what’s called a global synchronization which means most global economies are experiencing positive growth at the same time!
The book that we can script for you is moderately increasing interest rates, domestic and international economies growing and a volatile stock market with the undertow upward. You can specifically check your rate of returns on your online access through Wells Fargo Advisors or if you would like to inquire about the specific rates for your portfolio reflecting deposits and withdrawals please feel free to call us and we would be more than happy to share.
We thank you again for your trust and confidence and looking forward to serving your investment needs in the future. If you wish to consolidate other assets to Braun Wealth Management Group, please let us know.
All the best,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
11/24/2017
Dear Fundamental Choice portfolio participant,
Let me express our sincere appreciation for your trust in allowing us to manage your Fundamental Choice portfolio. Your Fundamental Choice portfolio is a part of an overall approach at Braun Wealth Management Group specifically represents a tactical approach. As a tactical approach, we will either underweight or overweight sectors based upon expectations. Within those sectors, we will select either individual securities and or indexes.
Since our last report in late August, the general markets have made a series of additional highs and as I dictate the Dow Jones is approximately at 23,540. We have had another GDP of3% on top of a prior quarter at 3.1%. This bodes well for corporate earnings, and as we look towards the end of the year we may have corporate tax reform which in its current format will allow monies held overseas by American companies to come home for investment, freeing up cash to direct towards increased research and development, more facilities, increase dividends, reducing debt, or all the above.
Presently, we have a cash weight of 3.7%. We have over weighted the following sectors: Information Technology with 18.9%, financials 18.6%, consumer discretionary 14.6%, consumer staples 9.4%. A reasonable weight in: healthcare 6.9%, industrial 6.9%, materials 5%, telephone service 4.8%. Also, added a smaller component to the emerging market via the emerging market index (EEM-NYSE) with a 3% weight.
In mid-October, we increased holdings of Bank of America (BAC-NYSE) to 7.1% and added the asset manager Trow price group (TROW-NYSE) with a 3% weight. We believe as interest rates continue their modest upward trend, financial related companies such as JP Morgan (JPM-NYSE), Bank of America (BAC-NYSE), Trow price (TROW-NYSE), financial equity index (XLF-NYSE) will participate along with continued financial deregulation. In Information Technology, there is a 6.9% weighting in Apple (AAPL-NYSE) and Facebook (FB-NYSE) 5.7%.
Consumer related companies include: Starbucks (SBUX-NYSE), Nike (NKE-NYSE), Amazon (AMZN-NYSE) , Pepsi (PEP-NYSE), Walgreens (WBA-NYSE), CVS (CVS-NYSE), and L Brands (LB-NYSE) all of which will be beneficiaries either through enhanced spending by a consumer that feels better and is also more secure in their job. Our largest position within the consumer area is Amazon (AMZN-NYSE) at 7.3% of the portfolio.
As we look towards 2018, I am very optimistic. We believe earnings will continue to expand as the economy begins to accelerate. With energy prices in check and a multitude of positive economic numbers that point to an improving economy.
Your expectations should be a moderately increasing interest rate climate from the Federal Reserve, increasing corporate earnings, and a general raising stock market, volatile yes, but rising, and sector selection we believe will be important which lends to the advantage of your fundamental choice tactical portfolio.
We wish you the best of holidays for 2017 and a safe and prosperous 2018 and should any of these updates spark an interest on your part by thinking about rebalancing your portfolios or considering merging assets to our firm please feel free to call us (260)637-6000 to discuss specifics.
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
8/18/2017
Dear Fundamental Choice portfolio client,
Since our last update in late June, I thought I’d take this opportunity to review some of the changes to the Fundamental Choice portfolio.
August usually is a time frame where markets go almost into a “boredom stage”. Trading activity volume is reduced, many institutional managers, research analysts etc. are on vacation and so the markets lack direction.
If you couple this with the markets trading near all-time highs with the continuation of a positively growing economy, a federal reserve raising interest rates at a moderate pace, energy prices in check, and one would think that it would bode well for an excellent foundation for further growth. However, markets get ahead of themselves sometimes and consolidation does occur. Normally a correction occurs, but we haven’t had a meaningful one in quite some time. We define corrections as anywhere between 3%-10%.
It’s like driving a car; there are roads that are direct and easy, there are other roads you travel on that are curvy with chuck holes so markets act in a similar pattern.
Having said all of that, the following edits have taken place since our last summary.
Over the last 3-5 weeks, we have reduced our exposure to Walgreen boots (NYSE-WBA) a 3% weighting, Verizon (VZ-NYSE) 4% weighting, the Dow Jones (DIA-NYSE) 3% weighting, Starbucks (SBUX-NYSE) 2% weighting, Nike(NKE-NYSE) 2% weighting, Johnson & Johnson (JNJ -NYSE) 3% weighting, JP Morgan(JPM-NYSE) 3% weighting, CVS (CVS-NYSE) 3% weighting, Apple (AAPL-NYSE) 5% weighting, basic material iShares (XLB-NYSE) 2% weighting just to name a few. At present, we are at our maximum amount in cash reserve at 25% as stated in the parameters of the portfolio.
This is an advantage to this type of a system; we have the ability to “pair back”. Pairing back means some of the names we mentioned we reduced but still own. We still like them for the long term, but sometimes in these climates you raise cash looking for a lower entry point for stocks and indexes we find attractive for the longer term.
As we look forward to the 4th quarter, volatility will continue. As opportunities present themselves, during either a minor correction of 3% or an intermediate correction of 5% or a traditional correction of 10% we will deploy the 25% cash reserves back into some of these names that we paired back. Our intentions remain the same, trying to achieve reasonable rates of return with reasonable volatility and having the ability to have a broad base which I call a “mainstream portfolio”. We hope the Fundamental Choice portfolio has met your expectations; I know it has met mine. If you would like to speak with us about the Fundamental Choice structure or any other advisory portfolio you may like to incorporate in your overall financial holdings, please feel free to call us at (260)637-6000 or email [email protected].
We thank you again for your continued trust, confidence, and we appreciate the referrals that you have extended to us over the years.
All the best,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
6/23/2017
Dear Fundamental Choice Client,
Let me express my sincere appreciation for your confidence in allowing us to be a part of your overall portfolio with our management of Fundamental Choice. The summer usually is a time where you see markets consolidate and it appears as if June is starting out in that pattern
We are amidst what I call the “political chatter stage” whereby healthcare reform and corporate tax reform is moving through the house and senate, and during this time frame, the markets will be suspect to any positive or challenging news out of Washington DC. It is my hope corporate tax reform gains traction and does get through Congress with presidential approval allowing more free flow of capital which will enhance corporate earnings in the long term.
The Federal Reserve has increased interest rates by another quarter of a point, which is an affirmation in my opinion of the United States economy beginning to accelerate, thus the Federal Reserve will probably have a disciplined, slow path in increasing rates over the intermediate and longer term.
In regards to your portfolio, since we last posted, we did make some edits. We added L Brands (NYSE – LB), which is the parent company of Victoria Secret, to participate in specialty retail with a 4% allocation. Also added Emerson Electric (NYSE-EMR). Emerson Electric (NYSE-EMR) an international global industrial company with a yield of approximately 3%, and it is our hope as the global economies continue to improve, Emerson (NYSE-EMR) will provide us with capital appreciation. We increased the allocation to Facebook (NASDAQ - FB), Apple (NASDAQ - AAPL) and Amazon (NASDAQ - AMZN) from 5% to 5.5%. This is a technique if you have a “winner” as with these three stocks, you allow those winners to run. It is my hope they will continue to show appreciation, and if they do exceed the levels of 5.5%, I will probably increase to a 6% allocation to each.
We did take a profit for the model portfolio in PPG (NYSE - PPG) for a second time this year. We did exit out of oil companies such as Chevron (NYSE – CVX) and XLE back in February and early March anticipating a decline in energy prices. We have seen so far this year a decline of approximately 20% in energy prices due to oversupply and deregulation. We probably will go back into the energy sector at lower levels. Many analysts are talking about the mid 30’s for oil prices, which would pose an excellent opportunity to reenter the energy sector. As a sidebar, lower energy prices will obviously help industry, the consumer, and the global economy by lowering the cost of doing business. Lastly, we have approximately 13% in cash reserves awaiting opportunities.
Thank you very much for your confidence, and should you have any questions concerning your Fundamental Choice Portfolio, or you would like to entertain exploring more of our advisory portfolios we offer at Braun Wealth Management Group, please feel free to call us. We would be more than happy to discuss your personal situation with you. Hope you have a great summer!
All the best,
Byron R. Braun
President
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
5/9/2017
Dear Fundamental Choice Client,
Since our posting on March 8, 2017, we thought we would update the portfolio edits for your review. When a position is sold, added, or reduced, the remaining portfolio is rebalanced. This is an important component to pursuing long term success I believe.
In March, we liquidated our long term holding in UPS (NYSE: UPS), the original position for our strategy goes back to October of 2012. This reduction was due to competition, increased costs and the potential Amazon (NASDAQ: AMZN) getting into the delivery business from an internal perspective. We also increased our positions to Amazon (NASDAQ: AMZN) and Facebook (NASDAQ: FB) representing a 5% holding each. Amazon (NASDAQ: AMZN) we believe offers an excellent long-term opportunity based upon the expansion of delivery services.
In mid-March, we increased Walgreen Boots (NYSE: WBA) and added CVS Health Group (NYSE: CVS). We believe CVS (NYSE: CVS) will offer potential upside due to a milder transformation of health care in the United States, and will complement Walgreen Boots (NYSE: WBA) which gives a global participation. We also reduced our holding in mid-March to the energy sector in its entirety by liquidating Chevron (NYSE: CVX). Chevron (NYSE: CVX) a holding since August 2014 for the model portfolio. Deregulation in the energy sector may have a long-term impact on supply, particularly domestic supply due to increased drilling and exploration activities which will put pressures on the energy sector for profits, but will benefit the consumer.
Moving forward to April, we increased holdings to JP Morgan (NYSE: JPM), Johnson & Johnson (NYSE: JNJ), Walgreen Boots (NYSE: WBA), Select Dividend iShares (DVY), Health Care Index (XLV), the Tech Sector Index (XLK). At present, we hold approximately 11% in cash. We have an overweight in materials of approximately 10%, an overweight in Information Technology of approximately 17%, an overweight in consumer staples of 14%, and Consumer Discretionary of approximately 12%.
Thank you very much for your continued trust and confidence in allowing us to manage your Fundamental Choice Portfolio as a component to your overall long-term journey. If you wish to discuss specifics about this portfolio or any other portfolio at Braun Wealth Management Group, please feel free to call us. We would be more than happy to have a conference call or meet in person. We hope that this summer season is good to you!
All the best,
Byron R. Braun
President
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
3/8/2017
Dear Fundamental Choice Investor,
The first two months of the year have been productive for your portfolio. It reflects the optimism regarding proposed corporate tax reform allowing corporations the ability to free up capital to direct to increasing dividends, R & D, hiring, expanding facilities, etc.
Regarding edits to the portfolio, we “pared back” to a 15% cash position when the DJIA approached 21,000. “Paring back” means for example, taking a 5% position and reducing it to 4%, or taking a 6% position and reducing it to 5%. We pared back Walgreens (WBA), United Technologies (UTX), The Dow Jones Average itself (DIA), Pepsi (PEP), Nike (NKE), Johnson and Johnson (JNJ), The Dow Jones Dividend Index (DVY), and Apple (AAPL).
We sold Kroger Foods (KR) due to the continuing struggle with what is called deflation in the food market. The position registered a small profit depending on the timing of the acquisition for your specific portfolio. We also took a profit in late January in Royal Caribbean (RCL).
As we look towards the year, my observation is there will be what I call more “political chatter” regarding corporate tax reform and as positive comments are shared and/or challenging comments are shared by politicians, I feel it will have an impact. All in all, net/net in my judgment, when corporate reform does indeed take place, the United States economy will benefit by an expansion and stock prices usually follow. In this climate, it is important to utilize a portfolio like Fundamental Choice allowing a broad-based approach, the ability to pare back, and the ability to move swiftly.
Should you wish to discuss specifics, please call us. We appreciate your trust and confidence. If you would like to merge assets from other firms or other portfolios you have elsewhere, please give us a call and we can incorporate this style for you.
Sincerely,
Byron R. Braun
President
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including sector weightings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
Dear Fundamental Choice Portfolio Client,
Let me being by expressing our appreciation for your confidence and trust in working with your financial assets at our group!
The year of 2022 had many cross currents, but the general theme was inflation hit a peak of 9.1% and federal fund rates were in essence at 0% which I would classify as atypical.
Then mid-year the Federal Reserve began aggressively increasing rates for overnight funds to approximately 4 ¾%. Inflation has fallen to 6.5%. Why is this backdrop important? The trend is going back to what I would call a “normalized climate”. Most of us can remember when inflation was 2-3%, interest rates were 4%, mortgages were at 5%, etc. I suggest 2023 is going to be a transition year back to a “normal climate”.
Is the federal reserve going to achieve an inflation rate of 2% in 2023? Only time will tell, but my guess is likely 3%. Will the Federal Reserve stop increasing rates? Probably one more at the next meeting, then a pause. Why is a pause important? It is important because it allows consumers, business owners, municipalities, and government entities to adjust to the new normal.
So how does this relate to your fundamental choice portfolio? Attached is the most recent snapshot of your fundamental choice portfolio, as of 2/13/2023.
Currently, we are holding a cash level of approximately 10%. The 10% allows us to rebalance and, if we see opportunities, we can direct cash to a new opportunity.
We are overweight in consumer discretionary equities, at approximately 22% and consumer staples at approximately 8%. The specific holdings in this area are:
Amazon 4.16%
Marriott 2.97%
Starbucks 3.82%
McDonalds 2.81%
SYSCO 1.90%
Tesla 2.55%
Pepsi 3.89%
Constellation Brands 3.98%
Consumer Discretionary Select Fund 4.20%
If inflation is going to be falling, that will free up cash from non-discretionary items such as rent, housing, heating, food, etc. to discretionary items reflected by these companies in your portfolio.
We did maintain our position in the information technology and technology area at approximately 14%. Our largest holdings are:
Apple 4.19%
Microsoft 4.15%
Vanguard Info Tech ETF 3.09%
iShares Technology Sector ETF 2.03%
Technology has been a consistent theme in our portfolio for its above average growth potential.
Another sector we own are the financials companies at 23%. The basic comment here is as people spend more, borrow more, and utilize electronic credit cards (Venmo, etc.) the movement of money allows financial entities greater margins. Thus, we believe these stocks will show appreciation over the longer term.
As we look to the fundamental choice portfolio, we are pleased with the rewards produced over the years. Your personal returns are shown on the portfolio summary attached.
Should you have any specific questions regarding the fundamental choice portfolio, your allocation, or any other items you wish to discuss please feel free to contact myself or our team members at Braun Wealth Management Group.
We wish you the best in 2023 and look forward to serving your investment needs in the longer term.
Sincerely,
Byron Braun
President
Senior PIM Portfolio Manager
Senior Fundamental Choice Portfolio Manager
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. No representation is being made that any account or transaction will or is likely to achieve profits or losses similar to those referenced. Any statements nonfactual in nature constitute only current opinions, which are subject to change.
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Portfolio shown is as of 2/13/2023 and subject to change. As Fundamental Choice portfolios are separately managed the
01/03/2022
Dear Fundamental Choice Portfolio Client,
As we begin 2022, we would like to extend our sincere appreciation for your confidence in working with your financial assets. 2021 had a multitude of cross currents - positive, neutral, and challenging. This summary will attempt to help you better understand the tactical approach the fundamental choice portfolio employs for you. I will discuss the representative account for the strategy we manage. For specifics due to inflows and outflows of cash to your own personal portfolio it may be slightly different, it may be a good idea to refer to your online access or your most recent statement for the exact percentages in your portfolio
At the beginning of 2021, the federal reserve maintained its policy for the most part throughout the entire year of low interest rates and providing liquidity to the system. Different components of the economy experienced spikes of inflation faced with supply chain issues facing those specific commodities as well as higher demand.
But when it is all said and done, net, net 2021 was a productive year for investors. As we look towards 2022, we feel it presents a multitude of opportunities and we will try our best to incorporate those into your portfolio.
Regarding the fundamental choice strategy as of Dec 31st 2021 our top holdings, as represented by a 4% or more position, are the following:
Microsoft (MSFT) 8%
Apple (AAPL) 7%
Amazon (AMZN) 7%
American Express (AXP) 5%
Coca-Cola (KO) 5%
McDonald’s (MCD) 5%
Pepsi (PEP) 4%
IShare Q’s (QQQ) 4%
Starbucks (SBUX) 4%
Sysco (SYY) 4%
Vanguard ETF Shares (VEA) 4%
We ended the year with an approximate cash position of 7% and during the year we added securities, reduced securities, and eliminated certain securities. They are as follows:
Stocks Added:
Sysco (SYY)
TJ Maxx (TJX)
Vanguard ETF Shares (VEA)
Ford Motor (F)
ARK Innovation (ARKK)
Disney (DIS)
Stocks Removed:
Facebook (FB)
Health Care SPDR Fund (XLV)
CVS (CVS)
Disney (DIS)
We do have the ability to overweight sectors, at present we are overweighting Information Technology, Consumer Discretionary and Staples and we also have the ability to underweight. For example, we have no utility positions in the portfolio.
Throughout the year we rebalanced the portfolio to reflect your personal cash needs added or withdrawn as well as rebalancing on-going to reflect the stated percentages of the portfolio.
If you have been a participant in the fundamental choice portfolio for more than two years, we believe you will find that once we find a candidate with a more consistent performance and adheres to our objective, we will remain invested in those holdings. If these companies appreciate in value, we will either pare back to the stated percentage, and direct to cash or new candidates, or we will allow the position to become a greater percentage by increasing the percentage allocation.
Some examples in this area of positions representing consistent earnings for the longer term are Microsoft, Apple, Coca-Cola, Pepsi, and Starbucks.
As we look toward 2022 with the new playbook shared by the federal reserve, we will probably experience 2 or 3 federal rate increases. We also may experience periods where inflation for specific commodities will either spike up or spike down. The federal reserve target for 2022 for the base rate of inflation is 2.6%. This represents a higher inflation number then in years past. We will also probably experience what I believe to be surprises, and they will most likely be on the supply chain front, enhancements to therapeutics regarding Covid, and surprises on the general strength of the economy. If these expectations are correct, you will probably see some changes to the portfolio in 2022.
We thank you very much for your confidence and allowing us to manage the fundamental choice portfolio as a component to your overall portfolio. If you wish to discuss in more detail the specifics of the portfolio or any more items feel free to contact us at your convenience. It is our intention to do our best to manage the fundamental choice portfolio in a tactical manner to help meet or exceed your objectives in the longer term. We thank you for your trust, confidence, and referrals.
We look forward to serving you investment needs in 2022!
Best Regards,
Byron R. Braun
President
Senior Fundamental Choice Portfolio Manager
The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. No representation is being made that any account or transaction will or is likely to achieve profits or losses similar to those referenced. Any statements nonfactual in nature constitute only current opinions, which are subject to change.
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Portfolio shown is as of 12/31/2021 and subject to change. As Fundamental Choice portfolios are separately managed the individual client account holdings will vary, perhaps significantly, from those listed on this factsheet. Information, such as industry sector allocation percentages and market capitalization allocation percentages, will also vary from the information listed on this client update.
09/21/2021
Dear Fundamental Choice Portfolio Client,
Let me begin by sharing our thoughts for your personal safety during this Coronavirus climate. At our office, approximately 3 weeks ago, we instituted all reviews and appointments via conference calls. We receive documents via secure emails or traditional mail. This will allow our practice to be as healthy as possible. Our phones are open and answered promptly, messages are returned. Quality service is paramount during this time. If you have any questions regarding any component to your portfolio or wish to move assets to our practice, please feel free to let us know.
Regarding your Fundamental Choice Model portfolio (for this discussion please check your portfolio online or statements). The model portfolio will mirror closely as possible to your own portfolio, it may be impacted by additions or withdrawals.
We are deploying a tactical approach allowing flexibility to overweight / underweight industries and individual securities / ETFs. The ability to raise cash, if we are cautious, cash reserves may be 25%. Also, the ability to pare down or pare up sectors and/or securities.
This summary is longer than in past, but I want to explain what paring down and paring up means. A hypothetical would be: we own XYZ Corp at a level of 4% in the portfolio. Paring down means if we are cautious or wish to take a profit but still like the company for the longer term, we will pare down to 3%, 2% or even 1%. This allows us to raise cash and/or re allocate to another index or stock. During this most recent climate we have pared up and down various times. As of April 2nd 2020, our model portfolio had cash levels of approximately 10%, down from approximately 20%. During this climate volatility is extreme, and as we look to the future the economy will probably be in a recession due to layoffs and furloughs. The backdrop continues to be inflation and interest rates are in check. In fact, interest rates are at all-time lows. As we navigate through this situation low interest rates will allow the consumer and businesses to borrow at low levels allowing dollars to be utilized elsewhere
Another thought, very simple but true, possibly in your neighborhood you have seen what I’ve seen: whenever the weather is 60° or higher hundreds of people are out walking their dogs, playing ball, or just out period. Please take this to another level and expand it to all of those whose haven’t had a dinner in a restaurant in months or haven’t visited their hairstylist, doctor, dentist, shopping, or activities due to government mandates. In my case, I miss socializing with my close friends, participating in my community involvement activities, and being with family. How does this equate to the economy? I believe there is going to be a profound demand for things and activities currently taken away from us. Simple things such as having a burger at Applebee’s. It sounds over simplified, but multiply this by many millions, equating to a significant rebound. Thus, the recession anticipated will probably be short lived. Coupled with the financial help from the CARES legislation for small business owners, homeowners, etc., allowing one to navigate through this period.
One of my clients shared with me the other day that I see things from the glass half full and empty. I am an eternal optimist. I believe America is the best place to live and work. America makes it through these challenging times and I believe Americans will find a way to beat this virus. Whether it be science, therapeutics, vaccines, social distancing, or American pulling together in a unified effort to make it through this difficult time.
So, as we move forward you will notice new names in the portfolio and you will probably see new additions. The underlying theme is we will keep in touch with the basic premise of the fundamental choice portfolio i.e. broad allocation through a variety of industries, sectors combined with individual securities and indexes.
If you wish to talk specifics about the Fundamental Choice Portfolio feel free to email or call us and we will be happy to review your portfolio. You can go online and review the allocations of your portfolio or you can look at your printed statements.
We thank you very much for the confidence and trust and look forward to serving your investment needs in the longer term. I will leave you with a quote from Warren Buffet, “If you wait for the robins… spring may be over” (2008).
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and in the aggregate may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
04/19/2021
Dear Fundamental Choice Portoflio Client,
On behalf of our practice, we would like to extend our appreciation for your confidence in working with your financial assets. We would like to share an update on your fundamental choice portfolio.
We will be discussing specifically the model portfolio and if you could please refer to your personal attached summary and/or your most recent printed / online statement for specifics.
To begin with, there has been much change since we last shared our thoughts. As I dictate this correspondence the CDC has announced approximately 70 million Americans have had both vaccine shots. The pace of vaccinations in this country is expected to continue with the possibility of 125 million or more fully vaccinated by mid-summer.
During this process the federal reserve has maintained their low interest rate policy allowing consumers, corporations, municipalities, and governments to issue bonds and borrow funds at historic lows.
This unique combination of low interest rates and the gradual opening of the United States and global economies is laying the ground work for an impressive rebound of the economy in the second half of this year.
As one reviews economist expectations for the second half can range from 6% to 8% in GDP which hasn’t been seen since the early 80’s.
Regarding your fundamental choice portfolio, as of April 12, 2021 the portfolio has approximately 7% in cash, and the top 10 holdings are:
Microsoft, Apple, Amazon, Facebook, Pepsi, Coca Cola, McDonalds, Raytheon Technologies, and Emerson Electric
We are incorporating, what we call, a “barbell approach”. On one side of the barbell, we have traditional growth companies like Microsoft, Pepsi, and Apple, on the other side of the barbell we have incorporated companies that will be beneficiaries of where the economy will go to as we reach “herd immunization” in the U.S. These names include Marriott, McDonald’s, CVS, American Express, PPG, Constellation Brands, SYSCO, and 3M.
The concept, which is oversimplified but true, as Americans begin to return to their normal lives and as states reduce restrictions on our society people will travel more, eat more, drink more, and spend more. Thus, the robust expectations in the second half of this year because you have this unique combination, not only in the U.S. but on a global basis. Truly rare & remarkable.
The information contained herein is based on technical and/or fundamental market analysis and may be based on data obtained from recognizable statistical services, issuer reports or communications or other sources believed to be reliable. However, such information has not been verified by us, and we do not make any representations as to its accuracy or completeness. No representation is being made that any account or transaction will or is likely to achieve profits or losses similar to those referenced. Any statements nonfactual in nature constitute only current opinions, which are subject to change.
For specifics, please review your fundamental choice portfolio. We do appreciate your continued confidence in working with your assets at Braun Wealth Management Group and we look forward to serving your investments in the longer term. If you would like to merge other assets at our practice, please let us know.
We hope you find this update to be beneficial. Should you have any questions please feel free to contact us.
Best Regards,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
[email protected]
8/20/2020
Dear Client,
I hope your summer has been a good one given all the different obstacles and challenges in our day to day lives due to the Covid-19 virus. Attached is a summary regarding your personal fundamental choice portfolio as of August 10th 2020. In this discussion, I will discuss the representative account for the strategy we manage. For specifics due to inflows and outflows of cash to your own portfolio, it may be slightly different, so it would be a good idea to refer to your online access or your most recent statement for the exact percentages in your portfolio.
First, as we look forward to the end of 2020 and the beginning of next year virtually every week there are positives regarding therapeutics and advancements in the different stages of the many vaccine candidates. It is my hope as we go into the end of the year it will become clearer as to the approval for vaccines which would then make 2021 much better for our society.
All through this the backdrop of low interest rates virtually at zero and low inflation provides an excellent foundation as America and the world opens up again for business.
Regarding the strategy, we did encounter a challenging climate but I would like to highlight some of the general themes and specifics we implemented.
As of 8/10/2020, our top 5 holdings for the strategy are:
• Microsoft (MSFT)
• Apple (AAPL)
• Amazon (AMZN)
• Facebook (FB)
• Verizon (VZ)
If you recall we have the ability to overweight sectors and we are overweighting the information technology sector. We did incorporate some re-balancing during the month of July and we did continue to pair back positions as they appreciated. Paring back means retaining ownership but reducing the percentages of the holding allowing us to rebalance to other holdings currently owned or add brand new candidates to the portfolio.
For the representative account for our strategy, in mid-July we sold all shares of AT&T. We also liquidated all shares of the ETF (DVY) which was the I-shares Dividend index we thought those assets could be better placed into other areas. In late July we did reduce our exposure in Apple Computer (AAPL) by 2% as it was close to 10% of the portfolio. Also, we pared back by 1% our ownership of Facebook (NYSE – FB) this was primarily for the same reason, it is approaching a higher percentage level. I still like Facebook for the longer term and it represents an excellent beneficiary as advertising comes back given the growth of the domestic and global economies that is envisioned for 2021. Along the same theme we reduced the holdings by 1% of Microsoft (MSFT) and the Q’s (QQQ). This represents the ability to direct those funds somewhere else to broaden the footprint of the account.
If you have been a participant in the fundamental choice portfolio for more than 1 or 2 years you will notice once we find a candidate with performance that is consistent with our strategy objective, we will remain invested in these holdings. If these companies appreciate in value we will pair back, and either direct it to cash or new candidates. With this in mind, we did increase holdings into Verizon (VZ) by 1% to 5%, we believe it represents an excellent candidate for the ever-changing telecommunications that we are about to see on a global basis. We also introduced a new candidate McDonalds (MCD). McDonald’s represents for the strategy a 3% allocation. In regards to introducing a new candidate, we usually introduce it at a 3% level and if it proves to be a solid candidate, we will increase it to higher percentages over time. The remaining dollars were rebalanced to the other holdings and we currently have about 11% in cash reserves (to be directed as opportunities occur).
As we look forward from now and to what I call “vaccine day” there also is a major election and during major elections there is more volatility, good, bad, and indifferent. Thus, the reason for the 11% cash position allowing us to take advantage of any opportunities between now and the election.
We thank you very much for your confidence and allowing us to manage the fundamental choice portfolio as a component to your overall portfolio. If you wish to discuss specifics or talk about adding to the fundamental choice or bringing assets over from other firms, that we can share the same type of approach, please let us know and we can talk specifics. We hope you have a great remaining part of your summer and thank you very much for your confidence.
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
[email protected]
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Information is current as of 08/10/2020 and subject to change. As Fundamental Choice portfolios are separately managed the individual client account holdings will vary, perhaps significantly, from those described above. Information, such as industry sector allocation percentages and market capitalization allocation percentages, will also vary from the information listed. A client opening an account today, may or may not, be invested in securities or sectors based upon the percentages discussed in this document. For the most recent portfolio composition please contact your Fundamental Choice Portfolio Manager. The Top 5 Holdings list represents the largest percentage of holdings in a representative account of the style as of the date shown above and is subject to change without notice. The mention of specific securities is not a recommendation or a solicitation for any person to buy, sell or hold a particular security.
The PIM program is not appropriate for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000. We are only accepting accounts with a minimum size of $100,000.
4/13/2020
Dear Fundamental Choice Portfolio Client,
Let me begin by sharing our thoughts for your personal safety during this Coronavirus climate. At our office, approximately 3 weeks ago, we instituted all reviews and appointments via conference calls. We receive documents via secure emails or traditional mail. This will allow our practice to be as healthy as possible. Our phones are open and answered promptly, messages are returned. Quality service is paramount during this time. If you have any questions regarding any component to your portfolio or wish to move assets to our practice please feel free to let us know.
Regarding your Fundamental Choice Model portfolio (for this discussion please check your portfolio online or statements). The model portfolio will mirror closely as possible to your own portfolio, it may be impacted by additions or withdrawals.
We are deploying a tactical approach allowing flexibility to overweight / underweight industries and individual securities / ETFs. The ability to raise cash, if we are cautious, cash reserves may be 25%. Also, the ability to pare down or pare up sectors and/or securities.
This summary is longer than in past, but I want to explain what paring down and paring up means. A hypothetical would be: we own XYZ Corp at a level of 4% in the portfolio. Paring down means if we are cautious or wish to take a profit but still like the company for the longer term, we will pare down to 3%, 2% or even 1%. This allows us to raise cash and/or re allocate to another index or stock. During this most recent climate we have pared up and down various times. As of April 2nd 2020, our model portfolio had cash levels of approximately 10%, down from approximately 20%. During this climate volatility is extreme, and as we look to the future the economy will probably be in a recession due to layoffs and furloughs. The backdrop continues to be inflation and interest rates are in check. In fact, interest rates are at all-time lows. As we navigate through this situation low interest rates will allow the consumer and businesses to borrow at low levels allowing dollars to be utilized elsewhere
Another thought, very simple but true, possibly in your neighborhood you have seen what I’ve seen: whenever the weather is 60° or higher hundreds of people are out walking their dogs, playing ball, or just out period. Please take this to another level and expand it to all of those whose haven’t had a dinner in a restaurant in months or haven’t visited their hairstylist, doctor, dentist, shopping, or activities due to government mandates. In my case, I miss socializing with my close friends, participating in my community involvement activities, and being with family. How does this equate to the economy? I believe there is going to be a profound demand for things and activities currently taken away from us. Simple things such as having a burger at Applebee’s. It sounds over simplified, but multiply this by many millions, equating to a significant rebound. Thus, the recession anticipated will probably be short lived. Coupled with the financial help from the CARES legislation for small business owners, homeowners, etc., allowing one to navigate through this period.
One of my clients shared with me the other day that I see things from the glass half full and empty. I am an eternal optimist. I believe America is the best place to live and work. America makes it through these challenging times and I believe Americans will find a way to beat this virus. Whether it be science, therapeutics, vaccines, social distancing, or American pulling together in a unified effort to make it through this difficult time.
So, as we move forward you will notice new names in the portfolio and you will probably see new additions. The underlying theme is we will keep in touch with the basic premise of the fundamental choice portfolio i.e. broad allocation through a variety of industries, sectors combined with individual securities and indexes.
If you wish to talk specifics about the Fundamental Choice Portfolio feel free to email or call us and we will be happy to review your portfolio. You can go online and review the allocations of your portfolio or you can look at your printed statements.
We thank you very much for the confidence and trust and look forward to serving your investment needs in the longer term. I will leave you with a quote from Warren Buffet, “If you wait for the robins… spring may be over” (2008).
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and in the aggregate may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
6/25/2019
Dear Client,
Let me begin by expressing our sincere thanks for allowing us to manage your Fundamental Choice Portfolio. Fundamental Choice is a component to your allocation and represents a tactical approach.
Attached is your personal portfolio review. It will show top 10 holdings, allocation, and rates of return for specific time frames.
Besides sharing with you the positive experience we’ve had in the first half of 2019, I will review several changes in the last 6 months, and for specifics you can check your own portfolio statements.
Since January 1st we have either trimmed, reduced, or eliminated holdings. Our thought process concerning the outlook for interest rates not rising, and/or actually decreasing, I thought it was appropriate to reduce and eliminate some financial holdings. Including the XLF Financial index, JP Morgan and Bank of America. We want to own financials when rates are rising, giving banks the opportunity to enhance their margins. But if the reverse is occurring, it would be a good time to reduce the financial sector.
With the ongoing challenges in the emerging markets, we sold the EEM (the ishares Emerging Markets ETF). We also increased cash reserves during the first half of the year. At present, the model portfolio has 11% cash. Cash levels can be deployed for opportunities as they present themselves. We added new positions: CVS, Constellation Brands, the XLE (ishare Energy ETF). CVS merged with Aetna, yields over 3% from these price levels. Constellation Brands, it is one of the largest beverage companies in the world. With the ongoing expansion of beverage consumption, not only in the united states, but on a global basis, Constellation Brands gives us excellent opportunity in the consumer area.
Regarding XLE (ishare Energy ETF), with the possibility of an agreement on Chinese trade and/or expanding economies, energy will have a tendency to be consumed more, increase in price, or both, allowing companies within The XLE ETF to grow and a dividend over 3%.
Every now and then we acquire a security we’ve owned before, i.e. Restoration Hardware. With Restoration Hardware, appreciation happened quicker than anticipated. We’ve sold it for profits.
As we look forward the United States economy continues to grow, unemployment is below 4%, the Federal reserve is expected not to increase rates, in fact decrease rates, and I am hopeful there is some sort of agreement on the Chinese Trade front. This all presents opportunities for us to continue employing a tactical approach for your benefit in your Fundamental Choice Portfolio.
For specific edits / changes please review your own portfolio.
We appreciate your confidence in working with your assets. Should you have questions about this portfolio, other portfolios we manage for you, or if you would like to merge assets from other firms, we would be more than happy to discuss the process with you.
Hope you have a wonderful summer.
All the best,
Byron R. Braun President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of WeIIs Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an order to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy’s entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including sector weightings is as of June 30, 2019 and is subject to change.
3/6/2019
Dear Fundamental Choice portfolio participant,
As you are aware, we post updates for your Fundamental Choice portfolio on our website. The purpose is to give you our thoughts and for what our expectations are for the near term.
This past December was volatile and the portfolio ended the year with a liquid money market or cash at 4.3%. All of these statistics we will share are discussing the representative portfolio account and your portfolio it may be impacted by deposits or withdrawals. Please review your personal portfolio either online or with us directly.
The general markets are currently positive. We feel optimistic about a more reasonable Federal Reserve, and China trade negotiations moving forward. Other things such as positive job creation, and a GDP growth at 2.6% for the last reporting period. The markets have appreciated and one of the benefits of our approach is to have the ability to either what I call “scale back” or “back in”. As of February 28th, we raised the liquid money market cash levels approximately 13%. We raised cash two separate times January 9th and on February 13th.
As of 3/6/2019 the top 5 holdings by percentages are 6% each to Apple (NYSE-AAPL), and Microsoft (NYSE-MSFT), 5% allocation both to Facebook (NYSE-FB) are the Dow Jones Index (NYSE-DIA) and of course cash or the money liquid market at 13%. Their Total at about 35% of the portfolio. The 5 top industry sectors as of February 28th are Information Technology at 22.7%, Industrials 16.7%, Communication Services 14.7%, Financials 13.5%, and Consumer discretion at 9.4%. It is the intent of the portfolio to have broad participation in different sectors with the ability to underweight or overweight as evidenced by some of the aforementioned percentages.
As we look forward, interest rates, we believe, will be in check with maybe one more move by the federal reserve, continued optimism regarding Chinese negotiations, a growing economy, and job creation at a positive pace. During this process, we believe it is prudent to look at the portfolio and adjust accordingly.
We hope you have found this update to be beneficial to your overall planning, and should you wish to discuss your personal portfolio, please feel free to contact us at our office. We are looking forward to servicing your investment needs in the longer term. Have a great spring.
All the best,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
As each Fundamental Choice program account is individually managed, construction and ongoing management of portfolios may vary from those discussed in this Philosophy Statement. Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful.
Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the author as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Portfolio shown is as of 03/06/2019 and subject to change. As Fundamental Choice portfolios are separately managed the individual client account holdings will vary, perhaps significantly, from those listed on this factsheet. Information, such as industry sector allocation percentages and market capitalization allocation percentages, will also vary from the information listed on this factsheet. A client opening an account today, may or may not, be invested in securities or sectors based upon the percentages shown on this factsheet. For the most recent portfolio composition please contact your Fundamental Choice Portfolio Manager. The Top 5 Holdings list represents the largest percentage of holdings in a representative account of the style as of the date shown above and is subject to change without notice. The mention of specific securities is not a recommendation or a solicitation for any person to buy, sell or hold a particular security.
8/8/2018
Dear Fundamental Choice Portfolio Client,
First of all, let me express our sincere confidence and appreciation in allowing us to manage your Fundamental Choice portfolio at Braun Wealth Management Group. The Fundamental Choice portfolio is a tactical approach with specific parameters.
In past updates, we have outlined some of those parameters but in today’s note I would like to talk about the ability to overweight and underweight. Overweighting and underweighting will allow us to achieve potential enhanced performance. At present, we are overweight Information Technology, Financials, and Technology.
Since our last update May 23, a variety of positive economic numbers have been released by the government. For example, the GDP for the second quarter rose 4.1%, the real personal income for the second quarter adjusted for taxes and inflation increased a positive 2.6% on top of a 4.4% rate n the first quarter. There are a whole multitude of positive economic numbers to share but to summarize the United States economy is in a growth mode, this is on top of all of the “noise” one is hearing about trade negotiations etc. It is my thought trade negotiations are a way of posturing by the current administration to achieve results desired.
The analogy I use is when one buys real estate if the home is listed at $500,000 most sellers will list their home at a higher price and most buyers are going to come in with their initial offer below asking price. Then the buyer and seller come together at a happy medium and a transaction is achieved. My guess is this is what is happening with the European Union, Canada, Mexico, and China.
The model portfolio for the Fundamental Choice registered period ending July 30, a net positive of 6.2% year to date. For your specific rate of return you can visit the online website or reference your personal paper statement.
Since May 23 the markets moved sideways and we positioned for rewards so there was not much activity. We did add in the amount of 4% Royal Caribbean (RCL-NYSE). This is a holding owned in the past with much success. In Royal Caribbean’s case, because of rising energy prices the stock did indeed correct from a high of $135 a share and the initial entry point at $108.59 per share (for specifics please check your own activity) and in our judgement represents an excellent reentry point in the ever-expanding global tourism. In order to add Royal Caribbean (RCL-NYSE) we did pair back 1% each in the following holdings: Facebook (FB-NYSE), Pepsi (PEP-NYSE), Financial Equity Index (XLF-NYSE), Dow Jones Dividend Index (DVY-NYSE).
As we look forward to the final quarters of 2018, my guess will be noise regarding trade relations etc. will diminish due to some of the agreements being signed thus lifting those clouds off the market allowing the real economic positive numbers we are experiencing to show their benefits allowing the general stock market to appreciate.
We thank you very much for your trust and confidence in our abilities and if you should have any specific questions for your portfolio or would like to merge or transfer assets to our firm to experience the multi approach we incorporate for our clients please feel free to contact us. Have a great rest of your summer.
My best,
Byron Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
5/23/2018
Dear Fundamental Choice Portfolio Participant,
We would like to thank you for your continued confidence and trust in allowing us to manage assets with our Fundamental Choice portfolio. Much has happened since our last update on March 8, so I would like to first begin with reviewing some positives.
Through the last round of quarterly earnings reports, the average publicly traded corporation reported an increase of approximately 23% in earnings versus the same period last year. Much analysis has been done and if one takes out enhancements due to tax reform those earnings have risen 17%. In either case, this is a remarkable achievement! Secondly, the global synchronization of growth is continuing and third, the Federal Reserve is staying close to expectations by increasing the Federal funds rate by 2 or 3 more times the remainder of 2018.
As an overlap on the political front negotiations with China on trade, Mexico and Canada on NAFTA, upcoming summit with North Korea have clouded the positives in the economy. During this time frame, volatility has been intact and we have tried our best to navigate through volatility and as of this print date May 16, 2018 the model portfolio has appreciated a positive 2.6%.
One of the important components in this process with the Fundamental Choice approach is we have the ability to rebalance portfolios as positions are either added or deleted. Specifically, on April 27 in the portfolio, Verizon (NYSE-VZ) was trading fairly close to their 52 week high, we decided to sell one half of the position from 6% to 3% and AT&T (NYSE-T) was trading at towards lower end of the 52 week time frame with an approximate 6% dividend. We directed the 3% to AT&T (NYSE-T). We rebalanced the entire portfolio, rebalancing in my opinion, is one of the more powerful contributors to enhance portfolio performance. We rebalanced positions back to their original targets for Pepsi (NYSE-PEP), Bank of America (NYSE- BAC), United Technologies (NYSE-UTX), Emerson Electric (NYSE-EMR), TRow Price (NYSE-TROW) and Microsoft (NYSE-MSFT).
On May 14th, due to the proposals by the administration to look seriously probably for the first time in recent history about prescription prices. This will take into account domestic and international pricing, research and development, cost and recovery, and how the government bids out pharmaceuticals etc. It’s been my experience for over 40 years when you have a potential of the government changing the groundwork in an industry, there will be clear winners and clear losers of which its virtually impossible to figure out who they are ahead of time. Thus, we decided to sell our entire position of JNJ (NYSE-JNJ) and add a 3% position to PPG Industries (NYSE-PPG). PPG is an industrial and has been in the Fundamental Choice portfolio two separate times, both profitable. PPG gives a reasonable dividend of 1.7%, participates in the continued global expansion and represents an excellent opportunity in our judgement. At the same time, we again rebalanced the portfolio back to the original parameters and increased holdings in IShares Financial Index (NYSE-XLF) also Pepsi (NYSE-PEP) and the basic materials index (NYSE-XLB).
In summary, the model portfolio has appreciated approximately 2.6% (please check your portfolio online for specifics) and we are well positioned we believe to participate as these international events that I mentioned earlier will subside in the next ensuing 3 months or so. We do have in cash 5% and a broad-based portfolio participating in 9 different sectors, overweight in financials and information technologies.
Should you have any questions concerning your Fundamental Choice portfolio or any other item you would like to discuss, please feel free to call us at (260)637-6000. Wishing you the best for a great summer!
All the best,
Byron Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Braun Wealth Management Group, LLC
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
3/8/2018
Dear Fundamental Choice portfolio participant,
I’d like to take this opportunity to express our appreciation for your confidence and trust in working with your assets at our firm. As you know, a portion of your portfolio is being managed through our fundamental choice model.
There are specific parameters regarding the portfolio and to name a few, we cannot have cash levels higher than 25%, all securities in the portfolio have to be followed by Wells Fargo Advisors or their correspondent firms, at least one of those research organizations must have an attractive recommendation, it can be individual securities and/or ETFs, must have at least five sectors, and we have the ability to underweight/overweight sectors.
Our cash levels are now at 10%, and to review some of the activity since we last shared our thoughts. Late November, we sold L Brands (NYSE-LB) for a profit based upon the turnaround, liquidated Starbucks (NYSE-SBUX) for profits reflecting concerns from domestic competition. Sold shares of Nucor (NYSE-NUE) reflecting, in our judgement, an over valuation and directed those proceeds from these three liquidations to cash.
In late December, we added Microsoft (NYSE-MSFT). Microsoft, we believe will be an excellent addition to the portfolio reflecting accelerated earnings primarily due to their cloud-based businesses and excellent management. At present a 6.5% allocation.
Late January, we liquidated our positions in CVS (NYSE- CVS) and Walgreens (NYSE-WBA). Honestly there are too many implications from disruptors to this industry the largest one being Amazon (NYSE-AMZN) so we thought it would be prudent to walk away. We also liquidated positions in Met Life (NYSE-MET) and deployed an additional 1% to the Emerging Market ETF (NYSE-EEM), 1% more to Microsoft (NYSE-MSFT), increase 1% to the Financial Equity ETF (NYSE-XLF).
The first week of February during the market’s corrective phase added another 1% to Johnson and Johnson (NYSE-JNJ) and the Financial Equity ETF (NYSE-XLF).
Volatility is back and through your fundamental choice portfolio we will attempt to navigate through these times. At present, besides 10.3% in cash, we do have an overweight in the financial sector with a 20% weighting, 4% to JP Morgan (NYSE-JPM), 6% to Financial Equity ETF (NYSE-XLF), 7% to Bank of America (NYSE-BAC) and 3% to T Rowe Price (NYSE-TROW), an overweight in Information Technology with 18.5% of which 5.5% Facebook (NYSE-FB), 7% Apple (NYSE-AAPL), and two ETFs 3% each: Vanguard (NYSE-VGT) and the Technology Sector ETF (NYSE-XLK). Other holdings are Amazon (NYSE-AMZN), Pepsi (NYSE-PEP), Johnson and Johnson (NYSE-JNJ), Industrials: United Tech (NYSE-UTX) and Emerson Electric (NYSE-EMR), telephone service: Verizon (NYSE-VZ), the Dow Jones ETF (NYSE-DIA) itself 5%, Dividend ETF (NYSE-DVY) 4%, and a 5% weighting in materials with ETFs NYSE-IYM and NYSE-XLB.
As we look toward the future, the economy is still we believe in a good state. Expanding in fact accelerating; unemployment is at multi-decade lows, energy prices are relatively stable, the consumer is strong, and we have what’s called a global synchronization which means most global economies are experiencing positive growth at the same time!
The book that we can script for you is moderately increasing interest rates, domestic and international economies growing and a volatile stock market with the undertow upward. You can specifically check your rate of returns on your online access through Wells Fargo Advisors or if you would like to inquire about the specific rates for your portfolio reflecting deposits and withdrawals please feel free to call us and we would be more than happy to share.
We thank you again for your trust and confidence and looking forward to serving your investment needs in the future. If you wish to consolidate other assets to Braun Wealth Management Group, please let us know.
All the best,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable.
11/24/2017
Dear Fundamental Choice portfolio participant,
Let me express our sincere appreciation for your trust in allowing us to manage your Fundamental Choice portfolio. Your Fundamental Choice portfolio is a part of an overall approach at Braun Wealth Management Group specifically represents a tactical approach. As a tactical approach, we will either underweight or overweight sectors based upon expectations. Within those sectors, we will select either individual securities and or indexes.
Since our last report in late August, the general markets have made a series of additional highs and as I dictate the Dow Jones is approximately at 23,540. We have had another GDP of3% on top of a prior quarter at 3.1%. This bodes well for corporate earnings, and as we look towards the end of the year we may have corporate tax reform which in its current format will allow monies held overseas by American companies to come home for investment, freeing up cash to direct towards increased research and development, more facilities, increase dividends, reducing debt, or all the above.
Presently, we have a cash weight of 3.7%. We have over weighted the following sectors: Information Technology with 18.9%, financials 18.6%, consumer discretionary 14.6%, consumer staples 9.4%. A reasonable weight in: healthcare 6.9%, industrial 6.9%, materials 5%, telephone service 4.8%. Also, added a smaller component to the emerging market via the emerging market index (EEM-NYSE) with a 3% weight.
In mid-October, we increased holdings of Bank of America (BAC-NYSE) to 7.1% and added the asset manager Trow price group (TROW-NYSE) with a 3% weight. We believe as interest rates continue their modest upward trend, financial related companies such as JP Morgan (JPM-NYSE), Bank of America (BAC-NYSE), Trow price (TROW-NYSE), financial equity index (XLF-NYSE) will participate along with continued financial deregulation. In Information Technology, there is a 6.9% weighting in Apple (AAPL-NYSE) and Facebook (FB-NYSE) 5.7%.
Consumer related companies include: Starbucks (SBUX-NYSE), Nike (NKE-NYSE), Amazon (AMZN-NYSE) , Pepsi (PEP-NYSE), Walgreens (WBA-NYSE), CVS (CVS-NYSE), and L Brands (LB-NYSE) all of which will be beneficiaries either through enhanced spending by a consumer that feels better and is also more secure in their job. Our largest position within the consumer area is Amazon (AMZN-NYSE) at 7.3% of the portfolio.
As we look towards 2018, I am very optimistic. We believe earnings will continue to expand as the economy begins to accelerate. With energy prices in check and a multitude of positive economic numbers that point to an improving economy.
Your expectations should be a moderately increasing interest rate climate from the Federal Reserve, increasing corporate earnings, and a general raising stock market, volatile yes, but rising, and sector selection we believe will be important which lends to the advantage of your fundamental choice tactical portfolio.
We wish you the best of holidays for 2017 and a safe and prosperous 2018 and should any of these updates spark an interest on your part by thinking about rebalancing your portfolios or considering merging assets to our firm please feel free to call us (260)637-6000 to discuss specifics.
Sincerely,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
8/18/2017
Dear Fundamental Choice portfolio client,
Since our last update in late June, I thought I’d take this opportunity to review some of the changes to the Fundamental Choice portfolio.
August usually is a time frame where markets go almost into a “boredom stage”. Trading activity volume is reduced, many institutional managers, research analysts etc. are on vacation and so the markets lack direction.
If you couple this with the markets trading near all-time highs with the continuation of a positively growing economy, a federal reserve raising interest rates at a moderate pace, energy prices in check, and one would think that it would bode well for an excellent foundation for further growth. However, markets get ahead of themselves sometimes and consolidation does occur. Normally a correction occurs, but we haven’t had a meaningful one in quite some time. We define corrections as anywhere between 3%-10%.
It’s like driving a car; there are roads that are direct and easy, there are other roads you travel on that are curvy with chuck holes so markets act in a similar pattern.
Having said all of that, the following edits have taken place since our last summary.
Over the last 3-5 weeks, we have reduced our exposure to Walgreen boots (NYSE-WBA) a 3% weighting, Verizon (VZ-NYSE) 4% weighting, the Dow Jones (DIA-NYSE) 3% weighting, Starbucks (SBUX-NYSE) 2% weighting, Nike(NKE-NYSE) 2% weighting, Johnson & Johnson (JNJ -NYSE) 3% weighting, JP Morgan(JPM-NYSE) 3% weighting, CVS (CVS-NYSE) 3% weighting, Apple (AAPL-NYSE) 5% weighting, basic material iShares (XLB-NYSE) 2% weighting just to name a few. At present, we are at our maximum amount in cash reserve at 25% as stated in the parameters of the portfolio.
This is an advantage to this type of a system; we have the ability to “pair back”. Pairing back means some of the names we mentioned we reduced but still own. We still like them for the long term, but sometimes in these climates you raise cash looking for a lower entry point for stocks and indexes we find attractive for the longer term.
As we look forward to the 4th quarter, volatility will continue. As opportunities present themselves, during either a minor correction of 3% or an intermediate correction of 5% or a traditional correction of 10% we will deploy the 25% cash reserves back into some of these names that we paired back. Our intentions remain the same, trying to achieve reasonable rates of return with reasonable volatility and having the ability to have a broad base which I call a “mainstream portfolio”. We hope the Fundamental Choice portfolio has met your expectations; I know it has met mine. If you would like to speak with us about the Fundamental Choice structure or any other advisory portfolio you may like to incorporate in your overall financial holdings, please feel free to call us at (260)637-6000 or email [email protected].
We thank you again for your continued trust, confidence, and we appreciate the referrals that you have extended to us over the years.
All the best,
Byron R. Braun
President
PIM Portfolio Manager
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
6/23/2017
Dear Fundamental Choice Client,
Let me express my sincere appreciation for your confidence in allowing us to be a part of your overall portfolio with our management of Fundamental Choice. The summer usually is a time where you see markets consolidate and it appears as if June is starting out in that pattern
We are amidst what I call the “political chatter stage” whereby healthcare reform and corporate tax reform is moving through the house and senate, and during this time frame, the markets will be suspect to any positive or challenging news out of Washington DC. It is my hope corporate tax reform gains traction and does get through Congress with presidential approval allowing more free flow of capital which will enhance corporate earnings in the long term.
The Federal Reserve has increased interest rates by another quarter of a point, which is an affirmation in my opinion of the United States economy beginning to accelerate, thus the Federal Reserve will probably have a disciplined, slow path in increasing rates over the intermediate and longer term.
In regards to your portfolio, since we last posted, we did make some edits. We added L Brands (NYSE – LB), which is the parent company of Victoria Secret, to participate in specialty retail with a 4% allocation. Also added Emerson Electric (NYSE-EMR). Emerson Electric (NYSE-EMR) an international global industrial company with a yield of approximately 3%, and it is our hope as the global economies continue to improve, Emerson (NYSE-EMR) will provide us with capital appreciation. We increased the allocation to Facebook (NASDAQ - FB), Apple (NASDAQ - AAPL) and Amazon (NASDAQ - AMZN) from 5% to 5.5%. This is a technique if you have a “winner” as with these three stocks, you allow those winners to run. It is my hope they will continue to show appreciation, and if they do exceed the levels of 5.5%, I will probably increase to a 6% allocation to each.
We did take a profit for the model portfolio in PPG (NYSE - PPG) for a second time this year. We did exit out of oil companies such as Chevron (NYSE – CVX) and XLE back in February and early March anticipating a decline in energy prices. We have seen so far this year a decline of approximately 20% in energy prices due to oversupply and deregulation. We probably will go back into the energy sector at lower levels. Many analysts are talking about the mid 30’s for oil prices, which would pose an excellent opportunity to reenter the energy sector. As a sidebar, lower energy prices will obviously help industry, the consumer, and the global economy by lowering the cost of doing business. Lastly, we have approximately 13% in cash reserves awaiting opportunities.
Thank you very much for your confidence, and should you have any questions concerning your Fundamental Choice Portfolio, or you would like to entertain exploring more of our advisory portfolios we offer at Braun Wealth Management Group, please feel free to call us. We would be more than happy to discuss your personal situation with you. Hope you have a great summer!
All the best,
Byron R. Braun
President
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
5/9/2017
Dear Fundamental Choice Client,
Since our posting on March 8, 2017, we thought we would update the portfolio edits for your review. When a position is sold, added, or reduced, the remaining portfolio is rebalanced. This is an important component to pursuing long term success I believe.
In March, we liquidated our long term holding in UPS (NYSE: UPS), the original position for our strategy goes back to October of 2012. This reduction was due to competition, increased costs and the potential Amazon (NASDAQ: AMZN) getting into the delivery business from an internal perspective. We also increased our positions to Amazon (NASDAQ: AMZN) and Facebook (NASDAQ: FB) representing a 5% holding each. Amazon (NASDAQ: AMZN) we believe offers an excellent long-term opportunity based upon the expansion of delivery services.
In mid-March, we increased Walgreen Boots (NYSE: WBA) and added CVS Health Group (NYSE: CVS). We believe CVS (NYSE: CVS) will offer potential upside due to a milder transformation of health care in the United States, and will complement Walgreen Boots (NYSE: WBA) which gives a global participation. We also reduced our holding in mid-March to the energy sector in its entirety by liquidating Chevron (NYSE: CVX). Chevron (NYSE: CVX) a holding since August 2014 for the model portfolio. Deregulation in the energy sector may have a long-term impact on supply, particularly domestic supply due to increased drilling and exploration activities which will put pressures on the energy sector for profits, but will benefit the consumer.
Moving forward to April, we increased holdings to JP Morgan (NYSE: JPM), Johnson & Johnson (NYSE: JNJ), Walgreen Boots (NYSE: WBA), Select Dividend iShares (DVY), Health Care Index (XLV), the Tech Sector Index (XLK). At present, we hold approximately 11% in cash. We have an overweight in materials of approximately 10%, an overweight in Information Technology of approximately 17%, an overweight in consumer staples of 14%, and Consumer Discretionary of approximately 12%.
Thank you very much for your continued trust and confidence in allowing us to manage your Fundamental Choice Portfolio as a component to your overall long-term journey. If you wish to discuss specifics about this portfolio or any other portfolio at Braun Wealth Management Group, please feel free to call us. We would be more than happy to have a conference call or meet in person. We hope that this summer season is good to you!
All the best,
Byron R. Braun
President
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including portfolio strategy holdings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.
3/8/2017
Dear Fundamental Choice Investor,
The first two months of the year have been productive for your portfolio. It reflects the optimism regarding proposed corporate tax reform allowing corporations the ability to free up capital to direct to increasing dividends, R & D, hiring, expanding facilities, etc.
Regarding edits to the portfolio, we “pared back” to a 15% cash position when the DJIA approached 21,000. “Paring back” means for example, taking a 5% position and reducing it to 4%, or taking a 6% position and reducing it to 5%. We pared back Walgreens (WBA), United Technologies (UTX), The Dow Jones Average itself (DIA), Pepsi (PEP), Nike (NKE), Johnson and Johnson (JNJ), The Dow Jones Dividend Index (DVY), and Apple (AAPL).
We sold Kroger Foods (KR) due to the continuing struggle with what is called deflation in the food market. The position registered a small profit depending on the timing of the acquisition for your specific portfolio. We also took a profit in late January in Royal Caribbean (RCL).
As we look towards the year, my observation is there will be what I call more “political chatter” regarding corporate tax reform and as positive comments are shared and/or challenging comments are shared by politicians, I feel it will have an impact. All in all, net/net in my judgment, when corporate reform does indeed take place, the United States economy will benefit by an expansion and stock prices usually follow. In this climate, it is important to utilize a portfolio like Fundamental Choice allowing a broad-based approach, the ability to pare back, and the ability to move swiftly.
Should you wish to discuss specifics, please call us. We appreciate your trust and confidence. If you would like to merge assets from other firms or other portfolios you have elsewhere, please give us a call and we can incorporate this style for you.
Sincerely,
Byron R. Braun
President
Fundamental Choice Portfolio Manager
All Fundamental Choice accounts are separately managed. These transactions may or may not apply to your account. Please refer to your account statement for additional information.
The Fundamental Choice program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. This communication has been prepared for informational purposes only regarding your Fundamental Choice account and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is not a guarantee of future results and there is no guarantee that any forward-looking statements made in this communication will be attained. There is no assurance that any securities discussed herein will remain in a Fundamental Choice strategy at the time you receive this communication or that securities sold have not been repurchased. The securities discussed do not represent a strategy's entire portfolio and, in the aggregate, may represent only a small percentage of a strategy's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. The information in this communication including sector weightings is as of 11/24/2017 and is subject to change.
Investment products and services offered through Wells Fargo Advisor Financial Network, LLC (WFAFN), member FINRA/SIPC. Braun Wealth Management Group, LLC is a separate entity from WFAFN.