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5C Capital Management, LLC
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We wish you a peaceful & healthy 2023.

We look towards a stronger 2023, although we expect capital markets to experience greater than normal volatility.

2022 was marked by considerable challenges – the war in Ukraine, inflation at a 40-year high, and Covid’s re-emergence in China. Mortgage rates increased greater than 100% during the calendar year, testing residential and commercial real estate valuations. Although this pricing and income drag should persist for the near term, we hope that the Fed’s eventual easing will stabilize the market.

The Fed Funds target rate is now between 4.25% – 4.5% after last year’s aggressive rate hikes. We expect the fed to raise again on February 1, hopefully very modestly and with strong guidance on a terminal rate. If inflation continues to ebb and unemployment rises, we expect a recession to follow. However, while there is much disagreement on when and how deep the contraction will be, the prevailing opinion is that it will be short-lived.

2022 Performance of Broad asset classes:

Again, we hope to experience a relatively short recession followed by an improving macro environment marked by moderating inflation and a yield curve trending towards more normalized ranges.

The better news – employment is relatively strong, corporate and consumer balance sheets are generally well capitalized and – the markets have already incorporated certain recessionary pressures. We hope for a peaceful resolution to the Ukraine/Russia conflict and accompanying positive developments for global markets.

Investment strategy & positioning

A silver lining – short to mid-term fixed income is generating significant income, with yields frequently exceeding 4% on short term US Treasuries, CD’s and high-quality Government Sponsored Entities. In certain situations, municipal bonds provide comparable tax adjusted yields to US Treasuries. We expect short/mid-term fixed income securities that are held to maturity to outperform as they recoup principal value temporarily lost when interest rates rose. Commodities/gold and clean energy outperformed broader equities and provided a modest hedge against inflation.

Key takeaways:

  • Continue to stay diversified;
  • Consider modestly increasing liquidity to counter additional volatility; and
  • Be opportunistic, not fatalistic in response to pockets of market weakness.  For example, dividend/value-oriented equity, including broad small cap exposure and targeted growth areas such as clean energy/cyber related technology.

Although financial markets continue to be volatile and negative sentiment persists, we expect long-term investors to be rewarded appropriately for the risk they continue to take.

Please do not hesitate to contact us at any time with questions and to schedule a financial review.

With a deep sense of responsibility,

5C Capital Management’s Investment Team

Michael R Sanders, Principal

Chief Investment Officer

Craig Marson, Principal

Director of Financial Planning

Disclosure:  Information contained in this communication is not considered an official record of your account and does not supersede normal trade confirmations or statements. Any information provided has been prepared from sources believed to be reliable but is not, does not represent all available data necessary for making investment decisions and is for informational purposes only. Any distribution, use or copying of this presentation or the information it contains by other than an intended recipient is prohibited. This information is subject to review by supervisory personnel, is retained and may be produced to regulatory authorities or others with a legal right to the information.
This presentation does not constitute an offering or sale of securities. This presentation is not, and under no circumstances is to be construed as, a prospectus, advertisement or public offering of securities. Past performance is not necessarily an indication of future results.
Please remember to contact 5C Capital Management, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services.
Federal and State securities laws require that we maintain and make available current copies of our Registered Investment Adviser Disclosure Document, also known as Form ADV Part II. Pursuant to SEC Regulation S-P, our Privacy Notice can be found by contacting our office or visiting us at
www.5cwealth.com

*Source: Bloomberg. Total returns for period ending 12/31/2022 MSCI World index, NASDAQ Composite index, Russell Indices, Standard & Poors. All returns are rounded to nearest 1% for presentation purposes, with exception of Gold given slight negative return.

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5C Capital Management, LLC

3 weeks ago

5C Capital Management, LLC
5C Capital invites you to attend their upcoming webinar.Tuesday, May 16, 2023For Sessions at Noon EST and 7pm ESTDuration: 30 minutes plus Q&A session followingThe following topics will be discussed:• US Debt Ceiling, fiscal & monetary policy impacts on your portfolio• Protection of your investment assets given recent banking crisis• Financial Planning during periods of high inflation• Tax & Retirement law changesRegister for the Tuesday, May 16th - Noon EST webinar at:events.r20.constantcontact.com/register/event...Register for the Tuesday, May 16th - 7:00pm EST webinar at:events.r20.constantcontact.com/register/event...For more information, please email us at: akonigsberg@5cwealth.com#webinar #financialmarket #financialadvice #inflation #financialliteracy #capitalmarkets #banking #401k #financialfreedom ... See MoreSee Less

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5C Capital Management, LLC

4 weeks ago

5C Capital Management, LLC
5C Capital invites you to attend their upcoming webinar.Tuesday, May 16, 2023For Sessions at Noon EST and 7pm ESTDuration: 30 minutes plus Q&A session followingThe following topics will be discussed:• US Debt Ceiling, fiscal & monetary policy impacts on your portfolio• Protection of your investment assets given recent banking crisis• Financial Planning during periods of high inflation• Tax & Retirement law changesRegister for the Tuesday, May 16th - Noon EST webinar at:events.r20.constantcontact.com/register/event?oeidk=a07ejrsxxzudc278845&llr=9an6s6zabRegister for the Tuesday, May 16th - 7:00pm EST webinar at:events.r20.constantcontact.com/register/event?oeidk=a07ejrsxyeffff32b10&llr=9an6s6zabFor more information, please email us at: akonigsberg@5cwealth.com#webinar #financialmarket #financialadvice #inflation #financialliteracy #capitalmarkets #banking #401k #financialfreedom ... See MoreSee Less

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5C Capital Management, LLC

3 months ago

5C Capital Management, LLC
SILICON VALLEY BANK: MANAGING CONTAGION IN THE BANKING SECTOROn March 10, 2023 the FDIC was appointed as receiver of Silicon Valley Bank (“SIVB”) based in Santa Clara, California. This is the largest domestic bank failure in more than a decade. How a bank with a $20 billion equity market cap just a month ago, could collapse so quickly is a stark reminder of how relatively rapid interest rate increases may affect an institution that was ill equipped to handle these conditions. Despite the Fed’s widely telegraphed path for interest rates, SIVB held approximately 78% of its portfolio in longer dated US government backed securities, designating these as “Held to Maturity (HTM)”. This meant that although the value of these securities was negatively impacted by rapidly rising rates, they were not “marked to market”. The balance of its portfolio was held as “Available for Sale (AFS)” which requires daily repricing. If the HTM portfolio was marked-to-market on 9/30/22, the loss would have been 1.35x greater than the bank’s tangible common equity. Banking regulators usually refer to a bank in this condition as insolvent.Please read the full article on our website at: 5cwealth.com/silicon-valley-bank-managing-contagion-in-the-banking-sector/Please do not hesitate to contact us at any time with questions at 347.331.0648 or via email at info@5cwealth.com.#capitalmarkets #commercialrealestate #financialadvisor #financialadvice #retirementplanning #retirementsavings #banking #bankingandfinance ... See MoreSee Less

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5C Capital Management, LLC

3 months ago

5C Capital Management, LLC
The Secure 2.0 Act of 2022 brings new rules for managing your retirement assets. Check out our website at 5cwealth.com/secure-2-0-act-of-2022-changes-to-retirement-savings-accounts/ for more information on the updated RMD guidelines.Please do not hesitate to contact us at any time with questions at 347.331.0648.#capitalmarkets #commercialrealestate #financialadvisor #financialadvice #retirementplanning #retirementsavings #retirement ... See MoreSee Less

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5C Capital Management, LLC

5 months ago

5C Capital Management, LLC
WE WISH YOU A PEACEFUL & HEALTHY 2023.We look towards a stronger 2023, although we expect capital markets to experience greater than normal volatility.2022 was marked by considerable challenges – the war in Ukraine, inflation at a 40-year high, and Covid’s re-emergence in China. Mortgage rates increased greater than 100% during the calendar year, testing residential and commercial real estate valuations. Although this pricing and income drag should persist for the near term, we hope that the Fed’s eventual easing will stabilize the market.The Fed Funds target rate is now between 4.25% – 4.5% after last year’s aggressive rate hikes. We expect the fed to raise again on February 1, hopefully very modestly and with strong guidance on a terminal rate. If inflation continues to ebb and unemployment rises, we expect a recession to follow. However, while there is much disagreement on when and how deep the contraction will be, the prevailing opinion is that it will be short-lived.Read the full article online at: 5cwealth.com/5c-capital-markets-update-january-2023/Please do not hesitate to contact us at any time with questions at 347.331.0648. ... See MoreSee Less

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New York Office: 707 Westchester Avenue, Suite 210, White Plains, NY 10604 I 347.331.0648 I Fax: 347.331.0647

New Jersey Office: 50 Tice Boulevard, Suite A32 Woodcliff Lake, NJ 07677 I 201.474.0987

Note to All Readers: The information contained herein reflects the views of 5C Capital Management, LLC and sources believed by 5C Capital Management, LLC to be reliable. No representation or warranty is made concerning the accuracy of any data compiled herein. There is no guarantee that any projection, forecast or opinion in these materials will be experienced by any client. Past performance is neither indicative of, nor a guarantee of future results. The views expressed herein may change at any time. These materials are provided for information purposes only and may not be construed as investment, legal, tax, accounting, planning and or consulting advice. The information contained herein does not evaluate or make recommendations regarding your specific investment objectives, financial situation and circumstance. When evaluating this material for purposes of making any assessment concerning 5C Capital Management, LLC, consider discussing your specific situation with other professionals prior to making any decision. Any information contained herein may not be construed as 5C Capital Management, LLC sales and or marketing materials and is not an offer or solicitation for the purchase or sale of any financial instrument, product, planning or consulting services sponsored or provided by 5C Capital Management, LLC or any representative of 5C Capital Management, LLC. Any references to specific securities, asset class, planning and consulting considerations are presented solely for illustrative purposes and are not to be considered recommendations by 5C Capital Management, LLC. 5C Capital Management, LLC may have positions in and or may affect transactions in, markets, industry sectors and companies described herein.

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