The Role of Your Wealth Equation in Volatile Times

TFW = a + (b₁ + b₂) + (c₁ + c₂) – (t₁ + t₂)

Carlson Capital Management CEO & Founder Greg Carlson shares his perspective and CCM’s core areas of focus during this unique time. Through the foundation of CCM’s Wealth Equation© concept, he reminds us that focusing on obtaining long-term goals and managing through volatility with a plan are the keys to eventual success.

Disclosures

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by CCM), will be profitable or equal any historical performance level(s).

Markets Have Rewarded Discipline represents the growth of a dollar using the MSCI World Index (new dividends) for the years 1970—2019. Source: In U.S. dollars. MSCI data © MSCI 2020, all rights reserved. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is no guarantee of future results.

Historical Context illustrates total U.S. Market Research Index Returns for the time period of July 1926—December 2019. Please see the source data for specific explanations of what is defined as a market decline for the purposes of the illustration. Source: FAMA/FRENCH TOTAL US MARKET RESEARCH INDEX RETURNS, July 1926—December 2019. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful. Periods in which cumulative return from peak is -10%, -15%, or -20% or lower and where a recovery of 10%, 15%, or 20% from trough has not yet occurred are considered downturns. For the 10% threshold, there are 3,442 observations for 1-year look-ahead, 3,396 observations for 3-year look-ahead, and 3,345 observations for 5-year look-ahead. For the 15% threshold, there are 3,175 observations for 1-year look-ahead, 3,167 observations for 3-year look-ahead, and 3,166 observations for 5-year look-ahead. For the 20% threshold, there are 2,561 observations for 1-year look-ahead, 2,560 observations for 3-year look-ahead, and 2,560 observations for 5-year look-ahead. 1-year, 3-year, and 5-year periods are overlapping periods. The bar chart shows the average returns for the 1-, 3-, and 5-year period following market declines. Data provided by Fama/French, available at mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html. Eugene Fama and Ken French are members of the Board of Directors of the general partner of, and provide consulting services to, Dimensional Fund Advisors LP. Short-term performance results should be considered in connection with longer-term performance results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.

NOTE: The information provided in these videos are intended for clients of Carlson Capital Management. We recommend that individuals consult with a professional adviser familiar with their particular situation for advice concerning specific investment, accounting, tax, and legal matters before taking any action.