Hilltop Wealth Solutions

November 3, 2021 ▫️ Recapping November’s Investment Committee Meeting

Asset Allocation Strategy

Hilltop Wealth Solutions’ Investment Committee held its monthly meeting on Monday, November 1, to consider portfolio adjustments based on the quantitative analysis provided by our partners at Helios Quantitative Research, LLC. The committee’s deliberations ensure that your assets are optimally invested per your customized financial plan.

As we continue to evolve using the best available data to our advantage — from now on — we may make multiple updates throughout the calendar month instead of only one adjustment. Combining cutting-edge datasets from Helios with our advisors’ knowledge about your personal needs, Hilltop keeps your wealth working for you!

As always, it is essential that you are informed of any change made to your accounts. Therefore, we will always notify you when adjustments occur.


There have been some improvements with Helios’ modeling, which include additional management of equity and fixed income exposures. Here is a brief recap of changes to the portfolios you have entrusted with us.


We increased equities exposure as the rotation into growth stocks continued. Risk-adjusted momentum is strongest in large-cap growth, large-cap value, and mid-cap blend. In addition, we added exposure to both domestic and international markets, given opportunities that may await at home and overseas.

Portfolios now have an “overweight” allocation to international stocks as they outperform U.S. peers. Many European nations have lower average valuations, and we allocated a portion of equity to Italy and France since they have the highest economic scores.

While we maintained our level of exposure in U.S. short-term bonds, we added exposure to U.S. high-yield bonds that pay higher rates. We also added exposure to short-term bonds since concerns remain around rising inflation. To accommodate the additions, we entirely removed U.S. corporate bonds and U.S. Treasury bonds.


Markets shook off September’s slump, with the S&P 500 notching to a new all-time high in October after solid earnings and upbeat consumer data provided a fresh dose of economic optimism. Moreover, while mid- and small-cap stocks lagged in the U.S., they outperformed the global index by a considerable margin as currency impacts weighed on emerging markets.

Nearly half of the S&P 500 has now reported third-quarter earnings, with a large majority delivering better-than-expected results. Yet the move for stocks came despite disappointing GDP figures. GDP growth for the third quarter came in at 2.0% — below the 2.8% expected. The reading marks a slowdown from 6.7% growth in Q2.

Fixed income markets attempted to digest this discouraging economic data and experienced a slightly positive performance in Q3. But bond market performance has not kept up with the pace of inflation. As a result, cash will likely continue to feed into equities, supporting stock valuations.

Most analysts have a positive outlook for the rest of the year, believing momentum will continue to build as earnings remain strong.


Moving into November means we’ve successfully navigated the trickiest period of the year. September and October are often when markets wobble. However, this year they held onto their gains and remained at or close to all-time highs in some instances.

There are signs that inflation may be more tenacious than initially expected, but we don’t believe a return to 1970s-style inflation is likely. Still, persistently sharp price increases could be a factor to reckon with — and we believe the market may periodically reflect investors’ unease.

Also, record stock market levels continue to conceal a list of things to worry about, including employers struggling to find workers, consumers battling with rising prices, and products stranded at ports. And there’s little hope the supply chain issues will work themselves out anytime soon.

Statistically speaking, we think it’s okay to have a little bit of risk on — even if there’s some volatility associated with it. We believe the markets will accelerate on the heels of good economic data and strong earnings from major companies.

At the conclusion of its November meeting on Wednesday, it’s expected that the Fed will announce the timing of tapering its $120 billion per month U.S. government-backed bond-buying program. Do we expect some volatility from tapering? We do, but we think it will be short-lived because it’s been so well communicated.

If the taper indeed begins in December, reducing the purchases by $15 billion a month would get the process down to zero in July. Moreover, the Fed is telling us that it expects growth to be fairly strong over the next year, and the economy is back on track.

This report serves as an overview of Hilltop’s economic and market outlook and portfolio implementation strategies.

To ensure your portfolio most effectively serves your goals and reflects your risk tolerance, we are available to answer any questions you may have.

Please contact us at (833) 889-7526 or schedule a “Quick Question” meeting online with your Hilltop  advisor:

We’re grateful for the trust you place in us. At Hilltop, we strive to provide comprehensive guidance and objective advice to help you achieve your financial goals.


This newsletter is not intended to be relied upon as forecast, research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date noted and may change as subsequent conditions vary. The information and opinions contained in this letter are derived from proprietary and nonproprietary sources deemed by Hilltop Wealth Solutions to be reliable.

Additional information about Hilltop Wealth Solutions is available in its current disclosure documents, Form ADV, Form ADV Part 2A Brochure, and Client Relationship Summary Report which are accessible online via the SEC’s Investment Adviser Public Disclosure (IAPD) database at www.adviserinfo.sec.gov, using SEC # 801-115255.

Hilltop Wealth Solutions is neither an attorney nor an accountant, and no portion of this content should be interpreted as legal, accounting, or tax advice.

Website Disclosures

Hilltop Wealth Solutions (“Company”) is an SEC registered investment adviser located in Mishawaka, IN with branch office located in MI and other locations throughout IN.  The Company may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements.  The Company’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links.  Accordingly, the publication of the Company’s web site on the Internet should not be construed by any consumer and/or prospective client as the Company’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.  Any subsequent, direct communication by the Company with a prospective client shall be conducted by a representative that is either registered or qualified for an exemption or exclusion from registration in the state where the prospective client resides.  For information pertaining to the registration status of the Company, please contact the SEC or the state securities regulators for those states in which the Company maintains a notice filing.  A copy of the Company’s current written disclosure statement discussing Company business operations, services, and fees is available by going online via the SEC’s Investment Advisers Public Disclosure (IAPD) database at www.adviserinfo.sec.gov, using SEC #801-115255.

The Company does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to the Company web site or incorporated herein and takes no responsibility, therefore.  All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by the Company, will be profitable or equal any historical performance level(s).

Certain portions of Company web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, the Company (and those of other investment and noninvestment professionals) positions and/or recommendations as of a specific prior date.  Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s).  Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from the Company, or from any other investment professional.

The Company is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if the Company is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of the Company by any of its clients.  Rankings published by magazines and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser.  Rankings are generally limited to participating advisers.

To the extent that any client or prospective client utilizes any economic calculator or similar interactive device contained within or linked to the Company web site, the client and/or prospective client acknowledges and understands that the information resulting from the use of any such calculator/device, is not, and should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from the Company, or from any other investment professional.

Each client and prospective client agrees, as a condition precedent to his/her/its access to the Company web site, to release and hold harmless the Company, its officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from the Company.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.