VCM Wealth is a registered investment advisory firm that provides an array of wealth management services to institutional and individual clients.

Insights & Commentary

April 2015 Commentary

Quarter Review

The volatility we saw in the 4th quarter of 2014 continued throughout the first quarter of 2015. The primary driver of the volatility was an increased expectation amongst economists that the U.S. Federal Reserve would raise interest rates as early as June. A second factor was sub-par earnings reports that produced a perceived slowdown in US production.

For the quarter, the S&P 500 squeezed out a slight gain of less than one percent. Conversely, the international markets (EAFE Index) produced a gain of over 5%. The shift signaled a belief that the similar European and Japanese monetary policies, which helped US markets for the last few years, are beginning to have the same positive effects across seas. Continue reading “April 2015 Commentary”

Vavra Capital announces new SMA product

Vavra Capital Management is pleased to announce the opening of it’s first separately managed account product. The strategy aims to outperform a 60/40 weighting of the Wilshire 5000 Stock Index and Lehman Aggregate Bond Index utilizing a portfolio of exchange traded funds (ETFs) while maintaining a similar risk level. The VCM Balanced ETF Strategy will be available directly through Vavra Capital or through any advisor on TD Ameritrade, Schwab, Fidelity or Pershing’s institutional managed accounts platform. For more information, please contact Vavra Capital directly at info@vavracapital.com or (610) 489-3018.

November 2013 Commentary

Our June commentary happened to be timely and fortuitous when I suggested the 5% pullback in the US markets sparked by the Federal Reserve hinting of a bond buying taper was “unwarranted” and an “overreaction” and would be “short-lived” and create a “buying opportunity”. Since then the S&P 500 has risen almost 13% to an all-time high of around 1800. Continue reading “November 2013 Commentary”

Financial Literacy Term of the Day: Monetary Policy

Monetary Policy – The regulation of the money supply and interest rates by a central bank, such as the Federal Reserve Board in the U.S., in order to control inflation and stabilize currency. Monetary policy is one the two ways the government can impact the economy. By impacting the effective cost of money, the Federal Reserve can affect the amount of money that is spent by consumers and businesses.

Financial Literacy Term of the Day

Fiscal Cliff – A combination of expiring tax cuts and across-the-board government spending cuts scheduled to become effective December 31, 2012. The idea behind the fiscal cliff was that if the federal government allowed these two events to proceed as planned, they would have a detrimental effect on an already shaky economy, perhaps sending it back into an official recession as it cut household incomes, increased unemployment rates and undermined consumer and investor confidence. At the same time, it was predicted that going over the fiscal cliff would significantly reduce the federal budget deficit.

Financial Literacy Term of the Day

Diversification – A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction. The goal of diversification is to reduce the risk in a portfolio. Volatility is limited by the fact that not all asset classes or industries or individual companies move up and down in value at the same time or at the same rate. Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions.