15 Jan 2025
Farewell to the Mag 7 era?
In 2024, it wouldn’t have matter much if an investor was marginally underweight equity, it mostly just mattered how much Magnificent 7 exposure an investor owned.
Fast forward to 2025, and the expected returns of most equity asset classes, excluding U.S. large-cap stocks, offer investors promising growth potential and substantial opportunities to diversify their portfolios beyond the realm of the Magnificent 7.
To seek to take advantage of these opportunities, at Frontier, we’re marginally increasing our exposure to specific equity classes in many of our strategies. I invite you to view our latest version of The Download to delve into the market themes driving our decisions.
Past performance is no guarantee of future returns. Nothing presented herein is or is intended to constitute investment advice or recommendations to buy or sell any type of securities, to invest in any particular asset class or strategy, or as a promise of future performance, and no investment decision should be made based solely on the information provided herein. There is a risk of loss from an investment in securities, including the risk of loss of principal. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for an investor’s financial situation or risk tolerance. Diversification and asset allocation do not ensure a profit or protect against a loss. All performance results should be considered in light of the market and economic conditions that prevailed at the time those results were generated. Before investing, consider investment objectives, risks, fees, and expenses. Frontier may modify its process, opinions, and assumptions at any time without notice as data is analyzed.
Information provided herein reflects Frontier’s views and opinions as of the date of this newsletter and can change at any time without notice. Frontier obtained some of the information provided herein from third-party sources believed to be reliable, but it is not guaranteed, and Frontier does not warrant or guarantee the accuracy or completeness of such information.
Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. The estimates, including expected returns and downside risk, throughout are calculated monthly by Frontier and will change from month to month depending upon factors, including market movements, over which Frontier has no control. They are only one factor among many considered in Frontier’s investment process and are provided solely to offer insight into Frontier’s current views on long-term future asset class returns. They are not intended as guarantees of future returns and should not be relied upon in making investment decisions.
Frontier provides model strategies to various investment advisory firms and does not manage those models on a discretionary basis. The performance and holdings of model strategies may vary from strategies managed by Frontier.
Frontier Asset Management, LLC is a Registered Investment Advisor. Frontier’s ADV Brochure and Form CRS are available at no charge by request at info@frontierasset.com or 307.673.5675 and are available on our website frontierasset.com. They contain important disclosures and should be read carefully.