Hartford Business Journal

28 HARTFORDBUSINESS.COM | June 20, 2022 FOCUS: Wealth Management Ken Russell (talking in the center of the photo) is the president of Grey Ledge Advisors, a wealth management affiliate of Guilford Savings Bank. PHOTO | CONTRIBUTED Here's how high net worth investors should manage the turbulent market, economy By Linda Keslar Hartford Business Journal Contributor S o far this year, investors have experienced a wild ride, with Russia's invasion of Ukraine, the ongoing pandemic, supply chain shortages, rising inflation and interest rates roiling markets. The Dow and S&P 500 index — key market benchmarks — continue to slip from their start-of-the-year highs, dipping into bear market territory as recession fears mount. Wealthy individuals, by logic, should have more resources than the less affluent to weather this kind of economic uncertainly and market volatility. But those categorized as high net worth, with at least $1 million in liquid assets, are often dealing with a more complex balance sheet compared to smaller investors who are limited to only a few asset classes. Hartford Business Journal recently talked with four seasoned local wealth management experts about strategies their firms are adopting for high net worth clients to keep their portfolios resilient in turbulent times. Here's what they had to say: S. Tucker Childs Director of Wealth Planning Bradley, Foster & Sargent, Hartford Current market view: "The war in Ukraine and the pandemic, which is ongoing, are important pieces, but our big question is what the Federal Reserve is doing to battle inflation." High net worth concerns: "The questions we're getting is if we're at a bottom and if there's a need to change their investment strategy." Investment strategy: Core strategy is individual stocks, high-quality, blue chip names. "We don't use a lot of mutual funds or exchange- traded funds for clients because we like having the ability to build customized portfolios." At the end of 2021, rebalancing included paring back equities to meet neutral long- term objectives. Stocks to grab: "High-quality growth companies like Adobe and Amazon, with great business models, which historically have been trading at high valuation multiples, are getting back to reasonable levels." Stocks in consumer staples and defense sectors are also strong performers year to date, he said, though that raises a red flag. "Now is almost too late to get into these sectors since the market has appreciated their safety and security." Stocks to avoid: "Names like Netflix and Disney that benefited from people staying at home but no longer as things have reopened." Fixed-income considerations: The firm views bonds as the "safety piece" of the portfolio. Short duration U.S. Treasury notes, two to three years, are a preference, though he notes "bonds yielding 2.5%, with inflation at 7% in real terms, are still a losing proposition." Crypto stance: The firm doesn't trade crypto for its clients. "The price action and volatility in crypto has been mind-boggling, which makes it tough to get a valuation, and that and other factors, make it uninvestable in my view."

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