Tactical Asset Allocation – December 2018

Sendero Wealth Management Advice

Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. This report reflects the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. The comments reflect opinions as of the specific date listed above and can change quickly based on market conditions. Tactical Asset Allocation – December 2018

Tactical Asset Allocation – September 2018

Sendero Wealth Management Advice

Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. This report reflects the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. The comments reflect opinions as of the specific date listed above and can change quickly based on market conditions. Tactical Asset Allocation – September 2018

How Active Is Your Passive ETF?

Sendero Wealth Management Advice

At Sendero, we believe in combining passive and active strategies in overall portfolio construction, and while fees are an important factor, cheaper is not always better. Do you know why one S&P 500 ETF beat another S&P 500 ETF by 0.09% annualized over the last 10 years? We do! Read more…

How Does Your Cash Stack Up?

Sendero Wealth Management Advice

Do you know if your bank is offering competitive interest rates? If not, you might want to ask and find out how their rates compare. Sendero has access to several competitive cash management options with yields ranging from…Read more

Tactical Asset Allocation – June 2018

Sendero Wealth Management Advice

Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. This report reflects the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. The comments reflect opinions as of the specific date listed above and can change quickly based on market conditions. Tactical Asset Allocation – June 2018

Soccer is more than just a game

Sendero Wealth Management News

Starting tomorrow, the FIFA soccer World Cup starts in Russia. The most watched sporting event in the world will be played in eleven cities over the next 30 days to crown the best soccer team. Not only is the champion a source of immense pride for the winning country, it also can mean an improvement in economic growth for the host country.  

While Russia is the largest country by area, its economy is relatively small. Smaller than Texas’ as a matter of fact. The Russian economy is ranked 11th in the world, near $1.7 trillion in nominal GDP terms, with the oil and gas industry contributing about 16%. Of course, Russia has been in the news a lot lately given its political and military influence here and abroad. 

Unlike the Sochi winter Olympics game of 2014, the economic impact of the World Cup may be limited this time. Some local retailers, restaurants and hotels will benefit of course, but the current global economic environment means any long-term effects will be negligible on the Russian economy. 

Unfortunately, the U.S. soccer team did not qualify and will not be one of the 32 teams competing for the trophy. One can draw some ironic similarities with the current economic environment: tariffs and economic sanctions, NAFTA renegotiations and new trade partnerships, the rise of populism in Europe, and central banks running at different tightening speeds. 

All this amounts to a global competition to crown the next emerging economy. The U.S. economy is by far the largest economy, but the gap is shrinking. Fierce competition is not just happening on a soccer field, but also in the areas of commodity mining and industrial plants as well as future industries such AI and robotics. 

The next economic winner will not emerge by the time the World Cup ends, but investors should be thinking today about what their portfolio of tomorrow should look like. 

Part of our research and due diligence efforts at Sendero include understanding and comparing the underlying stocks as well as sector and geographical allocations across all our active and passive strategies. 

Quick update: Canada, the U.S. and Mexico won a joint bid to host the World Cup in 2026. 

Let the competition begin! 

Tactical Asset Allocation – March 2018

Sendero Wealth Management Advice

Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. This report reflects the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. The comments reflect opinions as of the specific date listed above and can change quickly based on market conditions. Tactical Asset Allocation – March 2018

My Crypto Rollercoaster

Sendero Wealth Management Advice

Written By: Rodrigo Lopez

No matter what one thinks of Bitcoin or Blockchain technology, all investors (rookies and grizzled veterans alike) should thank the Cryptocurrency phenomenon for one thing:  A crash course in investor psychology. As everyone has different experiences investing in cryptocurrencies, I’ve decided it would be valuable to others to share my experience.

Week 1: I read about Bitcoin for over a year and my curiosity was starting to get the best of me. I decided to spend the entire week researching the pros and cons of cryptocurrencies and the best way to buy and store.

Week 2: After conducting extensive research and teaching a Blockchain 101 seminar in the office, I convinced several other colleagues to take the plunge with me. We opened Coinbase accounts and set a 60/30/10 plan to invest in what we thought was a “balanced” portfolio. The plan consisted of allocating 60% in Bitcoin, 30% in Ethereum and 10% in Litecoin.

Week 3: Timing could not have been worse, we bought Bitcoin at the top – and it was downhill from there. Furthermore, I lost conviction in Litecoin and sold with a 40% loss to allocate the remainder into Bitcoin. I thought, “Hey, Bitcoin has been here for a while, I’ll balance my cost basis and wait for it to rally again.”


Week 4: Bitcoin continued to plummet and every time this happened people said it was a “buying opportunity.” I succumbed twice and didn’t want to continue losing money, so I decided to stay put/hold my positions. I was no longer willing to get caught in the trap once again, even though the thought of 1,000x gains was very tempting.

Week 5: After the famous “crypto bloodbath” of 2018 I learned that discipline, especially in investing, is key. Cryptocurrencies are a completely different story, they do not behave like financial markets and any attempt to analyze them in the same manner is futile.

In less than two months, I’ve lived through a full “market” cycle and learned humility, discipline and restraint. On a more positive note, my Ethereum has rallied almost 50% (Thank you, diversification).

I look forward to sharing my future experiences with novel currencies and hopefully have some upside to share as well!

Why Do Economists Want to See MORE Inflation?

Sendero Wealth Management News

News Radio 1200 WOAI reports that the Fed has made inserting a manageable amount of inflation into the economy is a key goal in 2018, and Elizabeth Crawford, CEO of San Antonio’s Sendero Wealth Management says a lack of inflation despite strong signs of growth in the economy, is a main reason why much of that prosperity is not making its way to the paychecks of workers.

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