Snowwater Investment Partners, LLC

Many clients have asked about potential portfolio returns over the next six to twelve months. While we cannot predict future results, we can utilize scenario analysis to explore a range of outcomes for the U.S. economy and the subsequent impact on U.S. stock and bond market returns. BlackRock has published an informative chart illustrating potential paths for the U.S. economy over the next six to twelve months. We have used this chart to help clients understand how these scenarios could affect their portfolio returns. We would be happy to discuss how these scenarios may impact your specific portfolio.

A strategic approach to portfolio construction is a core component of Snowwater's investment practice. We emphasize the importance of generating consistent income streams to build resilience and provide stability. This income, when reinvested, becomes a powerful tool for diversification. We believe that a nuanced and agile strategy focused on capturing diverse public market income is more effective than short-term yield chasing or market timing, especially in the face of current macroeconomic and policy uncertainties. Our structured notes SMA strategy can help you earn high coupon income while reducing the amount of downside exposure. Contact us to discuss how our approach can help you.

We're seeing significant inflows into technology, financial, and consumer discretionary ETFs (see Bloomberg chart). These sectors have performed very well recently, but they also represent a large portion of the risk in today’s markets. Diversification and rebalancing are simple strategies we use to build durable portfolios designed to weather any economic storm that could adversely impact your investment returns. Curious about our approach?? Message us today.

The growth in private markets since late last century has been spectacular. The challenge for investors is how to capture the value from the investment opportunity this shift from public markets represents. We've been educating clients on private markets and explaining whether or not this is an asset class that meets their long term investment goals. The chart below from BlackRock demonstrates some of the change that has occurred so far.

The family office, which handles the investments of the ultra-rich, has expanded from a small number in the 1980s to about 15,000 offices worldwide with an estimated $5.9tn in assets says the Financial Times in an article earlier this summer. These investors are known for making sophisticated investments in less traveled parts of the global financial markets. However, as David Oakley points out, these investors focus on many of the same objectives as not so wealthy investors. At Snowwater, we help our clients with family wealth preservation, legacy, succession and financial planning. I encourage you to read David's article, found here. https://lnkd.in/ebC33uU9.

Among younger investors, stock ownership became much more popular as trading got cheaper and easier—though typical account sizes got smaller. This chart is part of a Bloomberg story found at https://lnkd.in/eHFAgDgc called What Americans Invest In Now.

Investments Update- Throughout the 2nd quarter, investors have received mixed signals from different asset classes. Inflation has continued to improve but now markets are pricing in election uncertainty, as well as the timing of rates cuts by the Federal Reserve. Bonds continue to look attractive as elevated yields and tight spreads have created opportunities in actively managed fixed income. Equities remained expensive, supported by A.I. and corporate optimism in Big Tech. Private equity activity remains challenged, but dealmakers are hopeful for the 2nd half of the year. Lastly, consumer spending has slowed since they are faced with persistent housing unaffordability.

Snowwater Investment Partners is excited to announce that we have partnered with Addepar to help simplify performance reporting and data aggregation while providing tailored analytics for our clients’ complex portfolios. As an Independent Financial Advisory Firm Snowwater provides customized solutions for Family Office and UHNW Investors across many types of assets. As our clients’ trusted RIA, we manage their wealth with the utmost diligence. With over $6T assets under tracking, Addepar is trusted by over 1,000+ firms throughout the world ultimately helping investors make better, more informed decisions.

Investments Update - The first quarter of 2024 was off to a strong start with many major indices hitting all-time highs. Although inflationary pressures lingered, corporate earnings remained positive, and the labor market strong. Bond yields remain high with the Federal Reserve being patient, needing further confidence with inflation. Alternative investments continue to provide attractive risk adjusted returns, despite private equity fundraising and monetization activity being a bit slow. Overall, the markets and economy continue to show resiliency through elevated rates with all eyes remaining on the Federal Reserve.