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July 14, 2020 | Wealth Planning

Quarter-End Snapshot: Q2 2020

Quarter-End Snapshot

Q2 2020

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Firm Update



Wow. What a quarter it has been – it’s the middle of the summer, and we’re already in the second half of 2020! I’m sure most of you share the sense that we’re in the middle of historic times, but it’s hard to tell the story while the chapters are still being written, so I won’t try. Instead, I’d like to focus on two very exciting developments in our business. 

Tolleson Private Bank

Rick Lafitte, the President of Tolleson Private Bank, was recently asked to join Tolleson Wealth Management’s Board of Directors. Under his leadership, the bank has experienced significant growth. Rick explains:

“Tolleson Private Bank’s financial strength and local leadership allow us to respond quickly and help our client families with their lending needs. Clients are still purchasing homes and making investments in these times. Our bank staff has adapted to working remotely and we continue to make loans at a record pace. Much of our new business is coming through referrals from clients who are spreading the news to their friends and colleagues about our responsiveness and competitive products. The bank’s deposit base is continuing to grow at a record pace, too, as word spreads about how dedicated we are to customer service. We are so grateful for the faith that our clients place in us with by spreading the Tolleson story to family and friends.”

Please continue to think of us if you, your family, or your friends have banking needs. We are here to help!

Enhancing the Client Experience

Royce Ramey, one of our senior client advisors, was recently named the Chief Experience Officer for Tolleson Private Wealth Management. Royce will become the point-person to help us deliver on our obsession to make your experience better than ever before. According to Royce:

“Over the past 20 years, Tolleson Wealth Management has grown and established a presence in the multi-family office business, building a robust platform to deliver all things financial for clients and their families. With the right tools in place, we are now turning our attention to integrating all of that into a seamless interface for you.

Initially, we will continue to focus on technology integration, an improved communication interface, and how we can elevate the delivery of investment and planning opportunities. For example, we know how important it is for you to understand your investment portfolio better, so we are actively working to provide greater transparency in your investment reports. I am thrilled to embark on this journey and will work tirelessly to deliver a premier experience to you and your family.”

Congratulations, Royce!



In our April investment update, we noted that our time horizons shorten in times of stress. COVID-19 has not calmed down, but the financial markets have for now. In the worst economic drop since the Great Depression, global stocks were up almost 20% in the second quarter, largely recovering from the abrupt losses in March.

Why? First, the economic contraction has not dipped as much as expected and business activity is picking up. Second, the financial markets have entered a period of uncertainty versus shock. Neither are good, but the latter is much worse. While there are still many major uncertainties about the economy and the financial markets as we live through an ongoing pandemic, May and June were a few steps in the right direction as investors have hope that the worst of this is behind us.

One of the key aspects of our investment philosophy is investing with a long-term mindset and not trying to “time” the market. There is much evidence that supports this, like the fact that the “average” equity investor in a mutual fund does worse than the actual mutual fund since they chase good performance periods. More recently, if you missed the five best days in the second quarter of 2020, it could have cost you 30% in gains!

While talking about the past quarter is important during these times, a longer-term mindset will set you up for better portfolio performance. We believe you need a minimum of a three-year time horizon on any individual investment, and a seven-year, or better, 10-year horizon with your overall portfolio. Analyzing short-term results is enticing as the news is constant, but it is really not important for meeting your goals. In any given calendar year, the stock market falls by 15% on average, yet more often than not has a positive return for the year. Similarly, the range of returns for a diversified portfolio over one year is -4% and +20%; however, over 10 years is +3% and +11%. You can see that the longer-term horizon really narrows the likely outcomes and makes the short-term declines seem less relevant.

With your portfolio, a typical time horizon is your life expectancy, and often multi-generational. So, think of your portfolio as it relates to your long-term goals, and the short-term performance merely as check points along the way. Over the long term, your returns will relate to how much risk you are willing to take. More risk should result in higher returns, but also larger pullbacks along the way, like what was experienced in March. Your goals should reflect the risk you need to take to reach your goals, and the amount of risk you are willing to take along the way.

While long-term results are most important, we too still are mindful of the shorter-term risks we face today and will balance these risks with opportunities to help you reach your goals.

General Performance Information
This information discusses general market activity, industry or sector trends, or other broad-based economic market or political conditions and should not be construed as research or investment advice. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Opinions expressed are current opinions as of the original publication date appearing in this material only. Any opinions expressed are subject to change without notice and TWM is under no obligation to update the information contained herein. TWM disclaims responsibility for the accuracy or completeness of this report although reasonable care has been taken to assure the accuracy of the data contained herein.