Well, I worked hard on building the best possible portfolios for our clients — and I finally received some recognition. They named a hurricane after me.

There are two researchers I greatly respect who recently shared their outlooks on the market. Their perspectives are worth noting because both are rooted in deep data analysis.

One foresees a continuation of the post-2009 bull market. He cites industrial efficiency and low interest rates as the key drivers of future growth.

The other predicts a return to 1970s-style stagflation, driven by high debt levels and supply shortages.

We structure our portfolios to prepare for either outcome — sunshine or storm. And like hurricane preparation, there are several approaches investors can take.

**First**, you can avoid hurricane zones. In financial terms, that means moving out of stocks and into bonds or annuities. While this approach avoids bear markets, it also cuts returns significantly — and leaves you vulnerable to the biggest long-term risk: inflation.

**Second**, you can buy insurance. In the investment world, this might mean short selling, hedge funds, or complex option strategies. These tools offer downside protection, but often at the cost of significantly lower returns.

**Third**, you can build a strong house in a resilient location. This is our approach. We aim to construct portfolios based on durable criteria that can withstand and recover from storms. Even our growth-focused strategies must meet strict quality standards to ensure they hold up in tough conditions.

**Finally**, history shows the highest investment returns go to those who ride out the storms. Across each bear market over the past 50 years, we’ve seen recovery — often faster than the market itself.

Katz Family Financial