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October 15, 2018 | Wealth Planning

Quarter-End Snapshot: Q3 2018

Quarter-End Snapshot

Q3 2018

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Firm Update

from J. Carter Tolleson

J. Carter Tolleson

Over the years, we have intentionally added services to meet our clients’ needs. In the past decade alone, we have grown significantly in areas like family education, philanthropy and client bookkeeping services. With our capability to serve in so many areas, we often find it hard to tell people what we do in a single sentence.

We recently met with our friend Stan Richards, founder of award-winning advertising agency The Richards Group, who we’ve known for many years. He is familiar with us since he helped with the original Tolleson Wealth Management branding in the early 2000s. When we met, Stan asked me to give him the firm’s “elevator pitch,” but stopped me shortly as I started to get into the all the details and services we provide.

“It’s too long… you lost me. The elevator stopped, and I got off,” he said. “It’s clear you do everything financial for your clients. You allow them to enjoy their wealth.”

He was right. It was simple and true. The goal of every service we provide, every advisor, every report we create, every hire we make allows our clients to enjoy their wealth. Everything is tightly interwoven and culminates into that one overarching objective.

We want our clients to enjoy their wealth.

There are so many variables to accomplishing this goal, but one we often see is through philanthropy. Whether it is managing a private foundation, a donor-advised fund or simply facilitating a charitable gift, our firm can help clients and their families achieve their philanthropic goals – or even shape those goals. Philanthropy has also become a key component of family meetings. It can be hard to get your family together to discuss family values, financial management, being a good steward of money, etc., etc., (I can see my kids rolling their eyes already), but to bring the family together to discuss individual passions, however different they may be, and how to make a difference, all while staying rooted in family – that’s powerful!

Therefore, you can understand my excitement to announce that Susan Wells Jenevein will join us as our Philanthropy Director to build upon the great work the team is already doing and lead us into the future. She joins us from Cristo Rey Dallas and has more than 20 years of experience in philanthropy development. We are excited to welcome her to the team.

As always, it is a sincere honor to serve you so that you can enjoy your wealth.

2008 - 2018: Investing Then & Now


A decade has come and gone since 2008, a period in the markets now known as the Great Financial Crisis. Lehman Brothers' collapse in September 2008 marked the beginning of a downward spiral for risk assets, as the S&P 500 fell 46% in just six months. However, the almost 10 years since the crisis have been nothing short of spectacular for those who remained invested in U.S. equities throughout this period. Most market strategists we talk to today continue to be optimistic about both U.S. and global economies, but what seems to be lingering in everyone's mind is the question of when will the music stop? How much longer can this current market cycle last?

One of the biggest themes that we've noticed recently is the continued positive sentiment surrounding the U.S. economy and markets. As a result, growth stocks that led the stock market last year are keeping up their momentum and, more recently, both short- and long-term interest rates are rising, a sign of a healthy economy. As interest rates move higher, we expect this to not only weigh on fixed income or bond markets, but also on equity valuations, as the cost of capital increases.

For example, emerging markets have recently performed poorly relative to other markets. They are now feeling the pain of higher U.S. interest rates, weaker local currencies and investors taking their capital elsewhere after reevaluating the risk/reward profile. While others may shy away, we see a good opportunity to further diversify both our fixed income and equity exposures across the globe, as the economic and earnings outlook are still encouraging.

As we witness these changing market conditions, we've positioned client portfolios into fixed income assets such as floating rate (as opposed to fixed rate) bonds that should perform well in a rising interest rate environment. On the equity side, we remain invested in high-quality companies that tend to trade at lower valuations than the broad market.

Ten years ago, the common question people asked was whether stocks will ever again provide a positive return. Hindsight has proven that patient, long-term focused investors who remained committed to diversified, balanced portfolios were rewarded with a decade of growth and the full recovery of temporary losses.

Then, as now, our goal here at Tolleson Wealth Management is to focus less on how much longer this cycle can last and more on portfolios that can prosper for the foreseeable future.

Tolleson Wealth Management is not a CPA Firm.


General Performance Information
This presentation has been compiled by Tolleson Wealth Management ("TWM"). Past performance is no guarantee of future results. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. All investments involve risk, including the loss of principal. 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. This material has been prepared and is distributed solely for informational purposes only and is not a solicitation or an offer to buy a security or instrument or to participate in any trading strategy. This report may not be reproduced, distributed or transmitted, in whole or part, by any means, without written permission from TWM. If you have any questions regarding this presentation, please contact TWM.