Hello Friends,

Thank you to those providing your kind words, given our difficult family events recently. Your words were quite helpful to me. 

Sometime in the coming week, likely no sooner than Wednesday the 4th, to allow the post-holiday trading volume to come back up, I intend to carry out a full rebalance within our client portfolio models. As has been the custom for a while, I carry out the rebalance first and then refine our client communication, which, as of now, I'm opting to title “The K-Shaped Recovery.” 

For those new or for those seeking a refresher about what this rebalance entails, within our practice, my preference is to identify or create themes that I believe will play out over the next 6 to 12 months. In conjunction with our thematic updates (sometimes it's not much different than the prior one), I like to use this opportunity to carry out a full rebalance of portfolios, bringing holdings close to their target allocation while factoring in changes to the holdings and allocation. We can knock it out in one mass rebalance (albeit terrifying for me at the time, given the money moving around), often for everyone. 

Normally, I carry out the rebalance and communication in mid-August; however, scheduling challenges prevented that until September.

Again, I'll have the particulars of the rebalance at a later time, but I just wanted to reach out in advance in case you may have some funds you were thinking about adding to your portfolio or if you have a need for cash from your portfolio (beyond any normal auto distributions some of you already have). 

If you need additional cash from your portfolio, notifying us in advance allows us to bake that cash need into the rebalance process. The result will be the cash you need while the portfolio is nearly perfectly aligned with its target while minimizing trades.

If you have external cash at, say, a bank or other brokerage firm or cash here at Schwab within, say, a “cash account/money market" that no longer needs to be parked on the sidelines, let us know in advance of the rebalance gives us time to move that cash into your advisory portfolio. If the new cash is a week or so out, we can delay your respective rebalance until said cash has arrived.

If you have any questions or wish to talk to us more about the upcoming rebalance, you can reach out to me or Donavan.

Have a terrific Labor Day Holiday.