Ariel Acuña founder and president of LTG Capital, creator of The Aqueduct Strategy, is encouraging clients to consider the comments and observations provided in the client letter provided via email on February 25, 2022, and provided in its entirety below via this news release today.

“One of our Client Community members voiced his concern given what’s been going on in Ukraine and which has further escalated within the last twenty four hours. He inquired as to whether I would recommend changes to his portfolio based on these geopolitical events and his particular financial situation,” Acuña said via a personalized email to his client list. “I write this note given that his concern may be shared to some extent by other members of our community. So what follows are some of my thoughts that I’d like to share with you.”

ACCUMULATION PHASE VERSUS DRAWDOWN PHASE

“As you’ve heard me say many times before, if you’re in the asset accumulation phase of your life, you should approach events such as this and any negative repercussion on stock prices as an opportunist. You should take advantage of depressed prices to buy at below average cost so that when the inevitable uptrend returns, you experience above average returns.”

“If you’re in the drawdown phase of your life, then you know the drill because we experienced something similar in 2020: Should your portfolios decrease in value sufficiently, we’ll begin sending you distributions from your Emergency Cash Reserves. Once your portfolios recover, we’ll resume creating income for you by selling securities rather than further depleting your Emergency Cash Reserves. We’ve all been there, and done that.”

RUSSIAN/UKRAINE SITUATION

“Recent Russian/Ukraine events have to do mostly with energy, which is an important source of Russia’s GDP. Russia supplies 40% of Europe’s heating fuel, in the form of natural gas. One of the two aging pipelines through which the gas is transmitted runs through Ukraine, which had lately revealed the presence of a growing yearning for increased ties to the West – perhaps even going so far as to join NATO. Putin could never allow this.”

“How the Russian/Ukraine situation will play out is anyone’s guess. I vote for diplomacy and a peaceful resolution but that may not be in the cards. Regardless, Russia’s overwhelming military strategy vis-à-vis Ukraine, points to this being a relatively short-lived and contained event.”

MARKET VOLATILITY AND THE FED

“The markets have at times experienced significant volatility since the beginning of 2022. Most of the volatility is tied to uncertainty regarding Federal Reserve moves concerning interest rates and inflation. The Russia/Ukraine situation complicates the picture for the Fed. However, the Fed’s mandates are full employment and price stability so they will continue to do what they can to uphold those mandates. This is a good thing.”

“The markets have sold off since the beginning of 2022. This is not unusual market behavior. It’s important to remember that the market does take regular ‘breaks’ before resuming its historical uptrend. And as you’ve heard me parrot, on an annual basis, the average market down is 15%. We haven’t had a selloff anywhere near 15% since Covid came into our lives in March 2020. My point is that we were due for some sort of setback.”

DEVELOPED WORLD AND U.S. ECONOMY

“The underpinnings of the U.S. economy as well as the developed world’s economy, are quite strong due to the amounts of stimulus governments unleashed and continue to unleash in reduced fashion. U.S. businesses are profitable, and businesses as well as individuals are flush with trillions of dollars in cash. We continue to re-open after Delta and Omicron surges, and the economic prospects are sanguine.”

SCHEDULE AN INTERVIEW with Ariel Acuña

To schedule an interview with Ariel Acuña, call 913-649-5009 and ask for Anne Laffin or Marie Swift or email ImpactMediaManager@ImpactCommunications.org.

ABOUT ARIEL ACUÑA, LTG CAPITAL AND THE AQUEDUCT STRATEGY

LTG Capital is Registered Investment Advisor (RIA) providing investment strategies to institutions and financial advisory services to individuals. Led by founder and president Ariel Acuña, the professional team helps to create ‘your financial life on purpose’ by providing a simple, straightforward, transparent, elegant, tax efficient investment approach to crushing the major indexes through time. They know about investments and market history. They know which investments work for long-term capital appreciation and which don’t.

Acuña is also the founder of The Aqueduct Strategy, (TAS) – a proprietary investment methodology that has ranked #1 in performance on the Fidelity Separate Account Network for since 2011 – which allows forward-thinking financial advisors the ability to outsource all or a portion of their clients' portfolio management to a tenured professional and fellow RIA who has years of experience managing client holdings.

Acuña earned an MBA via Amos Tuck School, Dartmouth College, and an MA in Economics from the University of California Santa Barbara.

Learn more at www.LTGCapital.com and/or www.TheAqueductStrategy.com.