--- title: Weekly Portfolio Update - 2/13/2018 description: 2/13/2018 - Weekly update on 4Thought Financial Group's Separately Managed Accounts for Investors image: https://www.4tfg.com/hubfs/Blog/4Thought-WeeklyUpdate.jpg --- [![4thought\_footer-logo.png](https://www.4tfg.com/hs-fs/hubfs/4thought_footer-logo.png?width=335&height=101&name=4thought_footer-logo.png "4thought_footer-logo.png")](https://www.4tfg.com/) - [![4Thought Financial Group](https://www.4tfg.com/hubfs/4thought_footer-logo.png)](https://www.4tfg.com/) [![4Thought Financial Group Compass](https://www.4tfg.com/hubfs/4Though-Compass.png)](https://www.4tfg.com/) - [About 4Thought](https://www.4tfg.com/investment-methodology) - [Our Investment Methodology](https://www.4tfg.com/investment-methodology) - [Management Team](https://www.4tfg.com/management) - [In the Media](https://www.4tfg.com/media) - [Contact](https://www.4tfg.com/contact) - [Services](https://www.4tfg.com/investing) - [Private Individual Investing](https://www.4tfg.com/investing) - [SMAs for RIA /Institutional /Family Office](https://www.4tfg.com/financial-advisors-and-institutions) - [Services for CPAs](https://www.4tfg.com/cpa-investing-services) - [Private Wealth Management](https://www.4tfg.com/wealth-management) - [Retirement Plan Services](https://www.4tfg.com/retirement-plan-services) - [Resources](https://www.4tfg.com/resources) - [Financial News](https://www.4tfg.com/resources) - [Portfolio Review](https://www.4tfg.com/portfolio-review) - [Investment Performance](https://www.4tfg.com/performance-requests) - [CPA Continuing Education](https://www.4tfg.com/cpe-continuing-education) - [FAQs](https://www.4tfg.com/faq) - [FAQs](https://www.4tfg.com/faq) - [Contact](https://www.4tfg.com/contact) - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) - - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) ## 4Thought Investing Resources ## 4Thought Investing Resources [Financial News](https://www.4tfg.com/resources/) [Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) [Personal Finance](https://www.4tfg.com/resources/topic/personal-investing) [Business Finance](https://www.4tfg.com/resources/topic/business-finance) [For Professionals](https://www.4tfg.com/resources/topic/financial-professionals)[Compass and Crosshairs](https://www.4tfg.com/resources/topic/compass-and-crosshairs) SUBSCRIBE Subscribe for free tips and articles to help you lead a smarter financial life. [Financial News](https://www.4tfg.com/resources) ,[Performance](https://www.4tfg.com/resources/topic/performance) # Weekly Portfolio Update - 2/13/2018 2/13/2018 - Weekly update on 4Thought Financial Group's Separately Managed Accounts for Investors \[fa icon="calendar"\] Feb 15, 2018, 10:16:02 AM by [Jesse Mackey](https://www.4tfg.com/resources/author/jesse-mackey) Strategy Performance Data ### **Download Our Performance Reports** ![GIPS Report](https://www.4tfg.com/hs-fs/hubfs/GIPS/4Thought_GIPS_Performance_GSA-1.jpg?width=130&name=4Thought_GIPS_Performance_GSA-1.jpg "GIPS Report") 4Thought Financial Group’s separate account strategies are managed with repeatable algorithmic processes so they can be consistently competitive. See how the actual client accounts in each strategy have performed. --- This notification for the week of 2/13/2018 is part of an ongoing series of updates intended to keep you informed about the changes occurring in your 4Thought Financial Group separately managed accounts (SMAs) each week. We may provide general commentary, as well as planning techniques and ideas. Make sure to discuss with your advisor whether these are applicable to your situation before taking any actions with regards to your financial plan or investment portfolio.   ## Perspective and Positioning: Stock indexes globally have experienced an abrupt slide during the last two weeks, following bonds, which had already begun to decline in market value in the weeks prior. The movement in stocks breached the technical definition of a correction (described as a 10% drawdown from the most recent record peak) on Thursday, after which they strongly rallied for 2 consecutive days. Nearly all major stock and bond indexes are now negative for their year-to-date performance (although only modestly). So far, this is a very ordinary run-of-the-mill correction if put in the broader context of market history. After one of the lowest volatility calendar years on record (2017) and a roaring start to stock markets in 2018, such a slide (or potentially something worse) was inevitable - the only question was when something like this would happen. As a result of our algorithmic analyses, the "Opportunistic" strategy portions of our client portfolios have been very conservatively positioned for some time now, and as a result have weathered the downturn quite well relative to the more conventional "Strategic" strategies also used for clients. The same algorithmic investment processes used to manage the Opportunistic elements of client portfolios currently indicate continued conservative exposures due to persistently high valuations in asset prices (even after the most recent correction) - however, this could change at any time, so be sure to remain patient as the broader markets fluctuate and avoid making any unecessary manual portfolio changes that might interrupt your potential to capitalize on the shifting markets. **In general, assuming no significant recent changes to investor objectives, there should be no need for any manual client portfolio reallocations as a result of this market event. We are already executing any necessary changes within (and across) the separate account strategies used for each client. However, if for any reason (as a client) you have not recently completed a portfolio objectives review (during the last year), it is recommended that you contact your advisor for these purposes and/or you complete the digital questionnaire provided in our Annual Review email, which was recently delivered to all 4Thought clients (check your email inbox on 1/26/18).** With regards to this year's asset class performances, bond returns are now roughly on par with stock returns (both are slightly negative for 2018). Emerging markets stocks are still the leading performer year-to-date (although this is mainly because of their massive rise early in the year - and not because of weathering the correction well). With the exceptions of US small and mid cap stocks, most stock types globally continue to be overvalued (expensive) even after the recent correction. Emerging markets stocks are measured as the most expensive currently, while US mid cap stocks are the least expensive (they are now slightly undervalued). Virtually all bond types are now either slightly undervalued or near fair valuation, with the exception of international developed markets bonds, which are still significantly overvalued. The continued overvaluation of the Strategic Asset Allocation investing method and global stocks as a whole point to the continued use of a cautious approach to cash deployment (see below "How Investors Can Take Action" for more info on this).   ## How Investors Can Take Action: **• For all investors:**  In general, assuming no significant recent changes to investor objectives, there should be no need for any manual client portfolio reallocations as a result of the recent stock slide. We are already executing any necessary changes within (and across) the separate account strategies used for each client. However, if for any reason (as a client) you have not recently completed a portfolio objectives review (during the last year), it is recommended that you contact your advisor for these purposes and/or you complete the digital questionnaire provided in our Annual Review email, which was recently delivered to all 4Thought clients. As always, remember to contact your advisor(s) to notify them if any of the following have recently changed for you: Life circumstances (Family, career, home, business, etc.); Financial goals; Lump sum cash needs; Monthly income needs; Bank account cash balances; Other assets or liabilities; Your attitude towards risk. Significant changes in any of these areas may require a reallocation of your investment portfolio. **• For growth investors:**  Make systematic investments of earned income into your investment portfolio so that the total annual contribution amount is less than your calculated available annual savings (Total earned income, minus living expenses, minus taxes, equals available annual savings). Use a cautious approach to contributions (not too much) based on current asset and method valuations. Consult with your advisor on this prior to taking action. **• For income investors:**  Take systematic withdrawals from your investment portfolio so that the total annual withdrawal amount is more than your calculated portfolio income need (Portfolio income need equals annual living expenses, plus taxes, minus any non-portfolio income). Use an aggressive approach to withdrawals (not too little) based on current asset and method valuations. Consult with your advisor on this prior to taking action.   ## Valuation of Investment Methods: **• Liability-Driven Investing (for Bear Markets):**  Currently roughly fairly valued (on an absolute basis), and it is the most attractively priced of the four method categories (on a relative basis) based on the measured average of our fixed income focused and risk transfer strategies. **• Selective/Concentrated Investing (for Eagle Markets):**  Currently roughly fairly valued to slightly overvalued (on an absolute basis), and it is the second-most attractively priced of the four method categories (on a relative basis) based on the measured average of our private equity like strategies. **• Strategic Asset Allocation (for Bull Markets):**  Currently slightly overvalued (on an absolute basis) and it is the third-most attractively priced of the four method categories (on a relative basis) based on the measured average of our hedge fund like strategies. **• Opportunistic Investing (for Wolf Markets):**  Currently overvalued (on an absolute basis), and it is the least attractively priced of the four method categories (on a relative basis) based on the measured average of our diversified (primarily stock) portfolio strategies.   ### **This information, along with details and actions specific to each 4Thought SMA, is emailed weekly to investors and interested advisors.** **To learn more about investing with 4Thought [contact us here](https://www.4tfg.com/contact) or learn more about our [Investment Methodology here](https://www.4tfg.com/investment-methodology).** ### Author: Jesse Mackey ![](https://www.4tfg.com/hubfs/Email/JesseMackey-EmailSignature.png) [mailto:jmackey@4tfg.com](mailto:jmackey@4tfg.com) Jesse Mackey is the Chief Investment Officer of 4Thought Financial Group, an SEC Registered Investment Adviser (RIA). As head of the firm's portfolio management operations, he provides investment planning and portfolio management expertise to aid affiliated financial advisors and partner firms in servicing their clients. He is also director of the economic theory, research, and publishing conducted at the firm. Jesse earned his MBA from Thunderbird School of Global Management in International Securities Investment, International Development and Entrepreneurship, and his Bachelor’s degree from Colgate University in Economics. He has more than 16 years of experience in the financial services industry. He holds the Series 66 Securities/Advisory license, and is also a licensed life and health insurance representative in several states. [More from this author](https://www.4tfg.com/resources/author/jesse-mackey) ## Was this article helpful to you? ### Subscribe to our newsletter for free tips and articles to help you lead a smarter financial life. ### Related posts [![Results Speak Louder than Words - Second Quarter 2026](https://www.4tfg.com/hubfs/Blog/4Thought-Blog_TemplateResults-26q2.jpg)](https://www.4tfg.com/resources/results-speak-louder-than-words-second-quarter-2026) [![Results Speak Louder than Words - First Quarter 2026](https://www.4tfg.com/hubfs/Blog/4Thought-Blog_TemplateResults-26q1.jpg)](https://www.4tfg.com/resources/results-speak-louder-than-words-first-quarter-2026) [![Results Speak Louder than Words - Fourth Quarter 2025](https://www.4tfg.com/hubfs/Blog/4Thought-Blog_TemplateResults-25q4.jpg)](https://www.4tfg.com/resources/results-speak-louder-than-words-fourth-quarter-2025) ## Leave a Comment ### Search 4tfg.com This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### **What Type of Investor Are You?** You have unique investment goals. 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The GIPS firm definition excludes any third party asset management programs over which 4Thought maintains oversight advisory agreements on behalf of its clients, any arrangements under which 4Thought provides recommendations for client self-implementation, and any assets under advisory but not under direct management (in which 4Thought provides allocation changes or trading signals to third party firms but does not take discretion over the trading of client accounts). GIPS-compliant performance information for 4Thought's strategies may be obtained by email at [info@4tfg.com](mailto:info@4tfg.com); on the 4Thought website at [www.4tfg.com/performance-requests](https://www.4tfg.com/performance-requests); or by phone at (516) 300-1617. Disclaimer [Form CRS, Firm Brochure (ADV Part2), Privacy Policy Notice, and Wrap Fee Program Brochure](https://www.4tfg.com/hubfs/Firm_Brochure_ADV_Pt2-Privacy_Policy-Wrap_Fee_Program_Brochure.pdf) [Disclosure](https://www.4tfg.com/disclosure) [BrokerCheck](http://brokercheck.finra.org/) Investment Advisory Services are offered through 4Thought Financial Group Inc., an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The content presented here is for informational purposes only and does not constitute a complete description of our investment advisory services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered (or notice filed) or where an exemption or exclusion from such registration exists. Information throughout this site, including, but not limited to, stock quotes, charts, articles or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. Neither we nor our information providers shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY LINKED WEBSITE. Any opinions presented here are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. \*4Thought Financial Group claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. The GIPS firm definition excludes any third party asset management programs over which 4Thought maintains oversight advisory agreements on behalf of its clients, any arrangements under which 4Thought provides recommendations for client self-implementation, and any assets under advisory but not under direct management (in which 4Thought provides allocation changes or trading signals to third party firms but does not take discretion over the trading of client accounts). GIPS-compliant performance information for 4Thought's strategies may be obtained by email at [info@4tfg.com](mailto:info@4tfg.com); on the 4Thought website at [https://www.4tfg.com/performance-requests](https://www.4tfg.com/performance-requests); or by phone at (516) 300-1617. ```json { "@context" : "http://schema.org", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "", "addressLocality" : "Syosset", "addressRegion" : "New York", "postalCode" : "11791", "streetAddress" : "6851 Jericho Turnpike Suite 120" }, "alternateName" : "4 Thought Financial Group", "areaServed" : { "@type" : "GeoCircle", "geoMidpoint" : { "latitude" : "+40.8100713", "longitude" : "-73.5172286" }, "geoRadius" : "150 km" }, "description" : "2/13/2018 - Weekly update on 4Thought Financial Group's Separately Managed Accounts for Investors", "email" : "[GDelorenzo@ClearHorizonGroup.Com, info@4tfg.com, no-reply@4tfg.com]", "image" : "https://www.4tfg.com/hubfs/4Thought-Financial-Group-OG.jpg", "logo" : "http://cdn2.hubspot.net/hubfs/2201374/4thought_header-logo.png", "naics" : "523920", "name" : "4Thought Financial Group", "sameAs" : [ "https://www.facebook.com/4ThoughtFinancialGroup", "https://www.linkedin.com/company/3043702", "https://www.youtube.com/channel/UCEHRK-25mAwfTlNzdvFSN3g", "http://investment-advisors.credio.com/l/39493/4thought-Financial-Group-Inc" ], "telephone" : "516-300-1617", "url" : "http://www.4tfg.com" } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Organization", "name" : "Jesse Mackey" }, "dateModified" : "February 15, 2018, 3:31:24 PM", "datePublished" : "2018-02-15 15:16:02", "description" : "2/13/2018 - Weekly update on 4Thought Financial Group's Separately Managed Accounts for Investors", "headline" : "Weekly Portfolio Update - 2/13/2018", "image" : { "@type" : "ImageObject", "url" : "https://www.4tfg.com/hubfs/Blog/4Thought-WeeklyUpdate.jpg" }, "mainEntityOfPage" : { "@id" : "https://www.4tfg.com/resources/weekly-portfolio-update-180213", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "http://cdn2.hubspot.net/hubfs/2201374/4thought_header-logo.png" }, "name" : "4Thought Financial Group" } } ```