Ken Van Wagenen, an Original Founder of the Investment Subsidiary of Wells Fargo in Los Angeles Shares with UCLA Anderson MBA Students his Latest Views and “Magic 12”

Ken Van Wagenen of Los Angeles shares his “Magic 12” with UCLA Anderson MBA Students

I encourage all investors to maintain equity exposure, but do not chase those investments that look ‘cheap’ and have not participated in the recent market uptrend

A reliable investment portfolio can be built around accumulating tax-exempt bonds for stability of principal and tax-free interest income. In addition, a portion of everyone’s nest egg should be allocated in stock market equity exposure for complimentary growth of principal. This news release is an update of just such a possible portfolio as described by Ken Van Wagenen, an investment professional with some 30 years of experience in the Los Angeles area.

There are many ways to accomplish a balanced portfolio and often the question comes to an efficiency formula to minimize costs and maximize returns over the long haul. It is easy to buy exchange traded funds for maximum diversification, but the real returns are found by sourcing the correct equity in companies themselves. Becoming a part owner, and watching good business management grow those companies can be a rewarding experience. Oftentimes even the best companies “stub their toe” and temporarily underperform. These missteps are often the best opportunity to buy and hold as management corrects the course and returns to traditional upward profits and stock price momentum. This was true over the past decade when financial stocks and big money center banks were crippled during the housing crises of 2008-2009. The returns gained from such positions have been staggering. Ken Van Wagenen of Los Angeles believes the banking sector has more “room to run” as interest rates finally normalize and lending banks can increase loan rates and their profit margin “spreads” expand.

Since the 2016 presidential election, we have noticed numerous successive all time highs in stock market performance. We have also seen the 60 day volatility for stock markets slip to below that of bonds for the first time this year. The US Treasury Bond yield curve has continued to flatten. This flattening means that the longer dated maturities return progressively less than expected for the additional risk associated with…

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