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Investment Committee

Cornerstone's Investment Committee establishes and implements our investment strategy, sets investment policy, and continually monitors every element of the investment process. 

Quarterly Meeting Summary - October 29, 2021

Investment Committee Quarterly meetings follow a standardized agenda to evaluate portfolio construction, analyze current economic themes, and review funds. Some things we consider are internal expenses, upside/downside capture, fund manager tenure, historical performance, standard deviation and forward-looking projections.

If you have any questions regarding our investment committee, please feel free to reach out.


Cornerstone's Investment Committee met Friday, October 29 to review 2021 third quarter data and examine what [potentially] lies ahead in the coming months.

Highlights from the Quarter:

•  We saw the S&P 500 experience a minimal Q3 gain despite the month of September being the worst month that the S&P had experienced since March of last year.

•  The S&P rebounded quite well in October, closing last Friday at 4,605.

•  We have seen strong company earnings continue to fuel the growth in the economy.

•  The U.S Congress recently passed a stopgap spending bill permitting the government to stay open until December 3.

•  Jerome Powell and the Federal Reserve continue to note that a “liftoff” for rate hikes would likely not commence until after the tapering process is complete.

•  We saw continued strength in Q3 from the FAAAM stocks (Facebook, Apple, Amazon, Alphabet, and Microsoft) as big tech names continue to support developing trends such as e-commerce and work-from-home.


What are we keeping an eye on moving forward:

1. Inflation seems to be at the top of the list as far as market concerns go. Inflation is continuing to be higher than the long-term goal. Many economists believe inflation will subside, but there are others that believe inflation will linger on for an extended time. As we head into the Holiday season, we hope that supply chains can keep up with the growing demand for many common household items.

2.  We continue to monitor growing tensions with China. Not only has there been tension with China and the United States, but we’ve also seen conflicts arise with China and Taiwan.

3.  There have been continued discussions as to the passage of an overall economic package. What is the extent of the bill and how do we pay for it? Congress will continue the debate as to the total dollar amount of the package. We continue to watch the national debt and how that is addressed moving forward.

4.  We’ve seen a major increase in the price of oil, and with that we’ve seen gas prices rise across the country. We will continue to keep our eye on the impact of these prices going forward.


What it means for your portfolio:

We spent a great deal of time analyzing the proper diversification of assets in all of our portfolios: from growth to value, from small-cap to large-cap, from US to international, from overall stocks to overall bonds. We made a few minor tweaks specifically to the bonds in some of our more conservative portfolios but left most of the positions unchanged.


Have you wondered why you have been getting so many trade notifications?

We continue to believe in not trying to out-guess the market, but we aim to be well diversified. We want to remind you that you may see periodic rebalances within your accounts. This is done in an effort to keep the overall portfolio allocation in-tact. We continue to expect volatility during this time of uncertainty regarding inflation, the passage of an overall economic bill, and COVID concerns among other things.

*Diversification and asset allocation do not ensure a profit or protect against a loss. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

The wealth advisors at Cornerstone Financial operate as a team,

and the Investment Committee plays a big role in that process.