You may have seen our recent announcement that DiMeo Schneider is opening a second office later this year. These are exciting times at our firm and I’d like to share insight into the Austin initiative and also provide some perspective regarding your own portfolio.
We’ve served clients in Texas for nearly 20 years and now work with a variety of corporations, nonprofits and wealthy families all over the state. It’s true that opening this office will help better meet the needs of clients throughout the region. However, client service was merely one of two very important considerations as we evaluated expanding our geographical presence. The other, and I’ve referenced it before in this column, is that we deem growth to be mandatory at DiMeo Schneider; and perhaps for reasons that are not so obvious.
We fully recognize that people are the firm’s greatest assets. As such, we foster an environment that provides professional stimulation, and growth is a primary driver. We have countless examples of talented professionals expanding their knowledge and responsibilities. It’s what makes things interesting and rewarding and we wouldn’t have it any other way. To be clear, our growth, while meaningful—7 to 70 professionals and $1.8 billion in assets to more than $60 billion over 21 years*—has and always will be thoughtful and measured.
And while on the topic of growth, let’s not forget your portfolio. 2016 has shaped up, so far, to be a very solid year and returns have far exceeded what most investors expected. With stocks and bonds near all-time highs, now is an excellent time to consider your investments and your objectives. While I can’t make any guarantees, here are a few timely thoughts.
Active investing will shine. We’ll always be fans of indexing at least a portion of most portfolios though it feels like investors might be overdoing it with passive (index) investing. History has shown that active and passive styles rotate in and out of favor. Don’t be surprised if we find ourselves in an environment that favors “stock pickers”. For more, pleaes click here to read our white paper Will Passive Investing Always be the Holy Grail? An Update on the Ongoing Active vs. Passive Debate.
Yields finally rise. We, like many, have been surprised at how low rates have been and for how long. But extrapolating investment trends can be dangerous. We recommend that at least a portion of most portfolios include positions that have a fighting chance of performing well in a rising rate environment.
Foreign stocks have their turn in the sun. Performance for large U.S. stocks has largely clobbered results for both foreign developed and emerging market equities. Again, trends typically revert and there are some compelling global investment themes. We believe in broad and thoughtful diversification for long-term investors.
So while it’s hard to believe, we’re rapidly heading toward year end. What a great time to grow!
For more information on these and related topics, please contact any of the professionals at DiMeo Schneider & Associates, L.L.C.
*From May 1, 1995 to June 30, 2016
