Insights

2018 was a year of incredible change for us here at HFG Trust. From mergers to market turbulence to new building construction, President, Will Wang, reflects on all that we accomplished as a company and the team of advisors, support staff, and clients that made it possible.

Since September 30, 2018, the global stock markets have seen a decline of 10-20%; and, more recently, the Federal Reserve has approved the raise of short-term interest rates by 25 basis points. What does this mean for your portfolio and strategy moving forward?

In the start of the 4th quarter, we appear to have gone from optimism to worry as US stocks have declined to prices we have not seen since mid-July. Favoring perspective over forecasting, CEO, Ty Haberling, discusses how this decline compares historically and the three principles HFG lives by when market volatility begins to lend more strength to emotion than to reason.

Most investors anticipate having some exposure to market volatility – it is the nature of our business. But what happens when the average market decline of 27% suddenly doubles? CEO, Ty Haberling, analyzes the likelihood that you will experience a Super Bear Market in your lifetime and the steps HFG takes in order to reduce the recovery time in the aftermath of catastrophic loss.

With no decline in any major asset class and an increase in value for well diversified global stock portfolios, the first quarter of the year has reinforced the strongly held belief that markets in the short run are impractical to forecast. In this article, CEO, Ty Haberling points to possible reasons for this recovery, a stark contrast to the last quarter of 2018; and why, when it comes to building portfolios, our emphasis remains on building arcs, rather than forecasting the weather.

The ramifications of a tumultuous year were felt by many of us in 2018. President, Will Wang, aims to shift your focus from the dollar value you see on paper to something you can control: the financial and cash flow plan you have carefully crafted with your advisor. Our focus in this article is on HFG’s investment philosophy and the strategies we have developed to ensure sustainability over our client’s lifetime.

With a turbulent start to the 4th quarter, the tone of our message remains centered on one core strategy: buying assets at attractive prices and ignoring the outside noise circulating in the daily media. However, the last three months has everyone wondering, what sparked the recent price fall? In this article, President, Will Wang, discusses the importance of understanding the inherently un-smooth nature of investing and what investors need to understand in order to make rational decisions during times of market turbulence.

How can investors maintain discipline through events that threaten progress toward their investment goals? In this issue, we identify the elements of an enduring investment philosophy and break down the formula most likely to produce favorable outcomes, despite interference by factors we cannot control.

With the volatility of this quarter’s market still sitting, undimmed in our rear-view mirrors, CEO, Ty Haberling, discusses the evidence-based approach HFG employs during times of market uncertainty. While there are no absolutes in the investment journey, at HFG our clients can be confident their advisors are building equity strategies around the three factors that will provide the highest probability of long-term success.

With the year coming to an end, CEO, Ty Haberling echoes the sentiment he receives from many clients as it pertains to investing and the economy: “I want to know what you are thinking about”. While it is our goal to provide meaningful commentary each quarter, at HFG, we favor education over forecasting when it comes to predicting the near term. In this issue we look back on 2017, provide our perspective on company earnings and stock prices, and re-examine how we use market valuations to allocate assets.

Past economic growth, interest rate changes, and market returns: are they leading indicators of the direction of future returns or are they strictly rear view mirror information? In this issue, we discuss the complexities of competitive markets and how long-term goals, implementation, and patience each occupy a vital role in the construction of a well-balanced portfolio.

The financial expert or the novice investor – who can better predict what the market will do next? Heading into the second quarter of the year, CEO, Ty Haberling, emphasizes HFG’s focus on the fundamentals of investing. Part art and part science, our advisors employ patience and logic to build a portfolio the client will keep, even during tough markets.

Time horizon, capital, and patience – three of the most important principles when it comes to making investment decisions. This quarter we evaluate forms of risk and how we should utilize these three principles to guide our investment strategies.

Experts were wrong about the US election, the direction of the US stock market post-election, Brexit, and the Italian Reform Referendum. What does this tell us? In the 4th quarter, we take a look at short-term vs. long-term predictions as they relate to investing and see interest rates rise as International Markets take a hit.

Is there a correlation between presidential elections and future returns? CEO, Ty Haberling, discusses the reliability of making investment decisions based election outcomes. This quarter also sees strong returns in the Global Stock Markets while bonds and interest rates remain unchanged.

Since 2012, we have mulled over the same question: Are past returns a predictor for future returns? As inflated prices remain a concern, HFG Trust continues to research this topic to improve predictions as far as 7-10 years out. In this article, we also take a look at International Markets vs. Domestic Stocks and this quarter’s Asset Class Report.

When it comes to your financial decisions, are you simply buying the advice you want to hear? This quarter, we aim to deconstruct behavioral finance and ground investors in understanding the evidence. To accomplish this, CEO, Ty Haberling walks through the prescriptions of investing that have survived the test of time.

As we continue on our mission to become our clients’ Financial Partner for Life, we are excited to partner with Community First Bank to provide our clients with the highest class of banking service. In this issue of HFG Connect, we also travel with our advisors to Nebraska, Utah, and back home to Kennewick as they meet with industry powerhouses, interview up and coming professionals, and break new ground with the Boys and Girls Club.

HFG Trust has officially moved into our new home on the corner of Grandridge Boulevard and Center Parkway. With more space and room to grow, we have expanded our mission of Simplifying Life for our clients to something even more enduring. President, Will Wang, unveils HFG’s new mantra as we open our doors to three new hires, one tiny family addition, and an increased effort to ward off cyber criminals.

HFG Trust is on the move! As our staff continues to grow in numbers, responsibilities, and service offerings, we are now gearing up to move to our new headquarters. This quarter we have also witnessed the 10th, 11th, and 20th years of service for three of our staff members and worked to redefine what is considered “normal” in the financial industry through our partnership with Community First Bank.

Do you have a roadmap for success outlined for your children? CEO, Ty Haberling reveals how his daughter’s recent visit to the structures of ancient Rome and Athens called to mind the role HFG plays as our clients build a foundation for generational success. We also join Advisor, Mike Tallman, as he celebrates his graduation from Southeastern Trust School to earn his CTFA designation and look back on HFG’s sixth annual Client Appreciation Event.

The transition from Haberling Financial Group to HFG Trust was largely inspired by one of our lifelong clients and a desire to go beyond managing his assets during one of his deepest times of need. In this issue, we explore what this transition means for our clients, welcome three new team members, and discuss how the current political climate has reinforced HFG’s commitment to being our clients’ Financial Partner for Life, through all seasons, good and bad.

What does your local supermarket and HFG Trust have in common? In this issue, we explore how both simplify the lives of individuals and families and what the addition of a family office means to our clients. We also welcome two new additions to the team and celebrate our advisors as they continue to reach milestones in their journey to becoming Certified Financial Planners™.

Having recently celebrated HFG Trust’s 31st year in business, Ty reflects on his vision of providing the community with a coordinated, client-first financial service. We also take a look at our employees’ recent accomplishments, HFG’s new client portal, and what our advisors have learned during their recent business travels.

HFG Trust makes investment decisions based on what Crestmont Research has dubbed “Probable Outcomes”, but how are these outcomes forecasted? Ty Haberling, CEO, evaluates three different valuation methods and illustrates how correctly assessing the markets can protect us in the short run while giving us a glimpse into what future returns may be.

Whether an investor is considering bonds, stocks, or real estate, one formula can be used to project the long-term Total Return per Year. President, Will Wang, breaks down income, growth of income, and price change and explains how these components are combined to determine your total investment return.

As memories of the 2008 economic and market decline fade from the public consciousness, CEO, Ty Haberling, dives into exactly how HFG Trust utilizes the investment climate to allocate your portfolio and the methods we are employing now to make our ship safer for rougher seas.

Active, Passive, or Factor Based Investing: Which strategy is right for you? In this article, President, Will Wang, looks at each option and explains the factors you should consider before making investment decisions.

Is your estate safe from state and federal inheritance taxes? President, Will Wang, explains how a Trust can empower you to protect your assets and give you peace of mind knowing exactly how your wealth will be distributed.