Red Haven Advisors Red Haven Advisors

Does a significant portion of your net worth include financial assets tied to the same company or industry where you or your spouse work? If so, then you won’t want to miss this episode of the Red Haven Advisors podcast.

In this episode of the Red Haven Advisors podcast we discuss how diversifying your financial capital and your human capital could strengthen your overall investment portfolio.Red Haven Advisors is based in Seattle and the local economy has been booming. The area has been blessed with not just strong job growth but strong job growth for “good jobs”. Amazon, Microsoft, Boeing, Starbucks, T-Mobile, Costco, and many other employers have been adding headcount in recent years to support their growing their businesses.

The top twenty publicly traded Washington-based (including Boeing) companies have paid more than $16B in stock-based compensation in the past twelve months. Further, they have paid roughly $70B in stock-based compensation over the past ten fiscal years.

So, even for employees that received only a portion of that $70B of stock-based compensation, now may be the time to start thinking about diversifying it.

Understanding the portfolio risk stemming from correlation between your human capital and your financial capital is always important. But, if a significant portion of your net worth includes financial assets tied to the same company or industry where you or your spouse work, then now is the time to start researching your options.

Contact us today at info@redhavenadvisors.com to learn more.

Thank you for listening.

In the event of a market downturn, will diversification protect your portfolio?

In this episode of the Red Haven Advisors podcast we discuss why diversified index funds are not immune to a market downturn. We discuss how large cap technology stocks are now a key driver of S&P 500 performance and how their current valuations make many cap weighted index funds a risky bet. Beware of FANGMAN (FB, AAPL, NFLX, GOOG, MSFT, AMZN, NVDA).

Red Haven Advisors urges listeners to understand what assets they own. Listeners are encouraged to investigate the individual holdings within the funds listed on their account statements. Style Box investing (ie, large cap growth, small cap value, etc.) is not sufficient to fully understand portfolio risk.

Finding fund holdings can typically be accomplished using a search engine. For example, to find the holdings of the popular SPDR S&P 500 ETF enter “SPY holdings” into a search engine (SPY is the ticker). The results show that State Street Global Advisors (ssga.com) is the fund’s trustee. Following the search engine results to the trustee’s website provides a tab labeled “Holdings”. The Holdings tab gives a current listing for each security owned by the fund.

Understanding what you own has never been more important. Diversification alone is not enough to protect against losses stemming from overvalued assets. Discuss valuation with your Financial advisor today or send us an email at info@redhavenadvisors.com.

Thank you for listening.

Referenced Material

The End Game Podcast Ep. 3 - Mike Green
Bill Fleckenstein and Grant Williams welcome a towering intellect in the shape of Mike Green of Logica Advisors, to discuss the role passive investing may have to play in The End Game.
https://ttmygh.podbean.com/e/teg_0003/