Well, hello, and welcome to our portfolio and performance insights discussion for Q2 2022, titled A Raincoat, Umbrella or Storm Shelter. Things are definitely a bit stormy out there right now, although the markets are giving us a little bit of sunshine today, and this discussion should help to arm you with some talking points for your clients, as well as some really good portfolio construction ideas designed to help you weather this storm. I do wanna remind you all that this is only part of all of our quarter end series that we host for you. Our first segment, Market Insights, is available for you as a replay, and our end client discussion is scheduled for next Friday, July 29. You'll wanna make sure you grab hold of that and send that off to any of your investors. I do also wanna point out to all of you that we have created a market volatility toolkit that is available for you inside of eWealthManager, just up there, right in the right hand corner. It can help you with some ideas for reaching out to clients, helping them to focus on the long term. We also have some tools that we've created for you relative to the business owner side of your business, recognizing that as assets are down, so is your revenue. My name is Vickie Edwards. I am the Chief Client Success Officer at AssetMark. I'll be your host today, and I'm joined by Zoë Brunson, who is, as many of you know, our Chief Investment Strategist. To begin today's discussion, Zoë's gonna walk us through a review of the AssetMark platform strategist allocations and performance, and then she's gonna give you a few portfolio construction ideas. Just a few housekeeping items before I get things started. On the bottom left-hand side of the screen, you'll see that you're able to ask questions. I will take all of those questions at the end of Zoë's 30 minutes of prepared remarks, and you'll notice that you can also download a copy of that presentation. Let's go ahead and get started. It's been quite a rough start to the year. I think I want an umbrella, a raincoat, and a storm shelter. Zoë, what insights can you share with advisors about the performance of our strategists and managers and how they are weathering the first half of the year in the difficult environment that we find ourselves in? Thanks, Vickie, it was quite a rather rough start to the year. Just to give perspective of how rare it is for both equities and bonds to be in negative territory, Goldman Sachs did a study going back to 1926 and found that over six months rolling periods, that only 4% of the time saw equities and bonds in negative territory. Not only was it rare, but the level of downside was pretty low compared to what we've seen today. If we look at the equities today, they're down 20%. On average, Goldman Sachs found in those periods that equities were down just -10%, and then their intermediate treasuries were down 1.6, where today they're down 5.8. We have been in a very, very rare situation to start this year, and you can really see this on the slide here. Just a quick interpretation of what all these bars mean, because there's plenty of colors here. The green and orange bars are essentially showing you year-to-date returns. Anything that is green is showing it's a tailwind to return, so it's providing a return above kind of what I call the core index. On the top graph, the 60/40. Bottom left, global equities, and then bottom right, global bonds. Anything in orange means it's a headwind, it hurt performance. Then the gray bars are just showing kind of the Q2 return. We can see in comparison kind of the full year and then what happened in the second quarter. Essentially, as we stated at the beginning, nowhere really to hide in the second quarter. The only area that was up was managed futures. Everything else was down. For the year, we're still seeing managed futures being up and then seeing, commodities be up as well, despite a little bit of volatility in that second quarter. Across the board, a really tough start. I think what's really interesting, though, is when you start getting to that bottom left side and you're looking at equities. The real difference, as I like looking at this, is that left to right on the U.S. value to U.S. growth. On the year-to-date basis, there was over 15 percentage points difference in terms of return. Where you were positioned within equities was a pretty big driver of the returns that we saw. On top of that, international returns we're seeing here, they actually outperformed U.S. equities in the second quarter. That's just kind of masking some of the returns that we see, because this is all in U.S. dollar basis. If we looked at local currencies, the returns of international markets were even stronger. The international developed markets were only down 7%, and the emerging markets were down just 8%. Why are we seeing 11 and 14 here in negative terms? Well, that was because of the strength of the dollar. We saw this dollar rally with some of that flight to quality. On the bond side, it was continued that flight to safety. Anything that had risk in it or was associated with risk, so high yield, investment-grade credit, emerging market bonds, saw weak returns in the year-to-date basis. We started to see that flight to safety favoring the treasuries of government bonds, and the shorter the duration, the better for the period. With that as a setup and a backdrop, how did our strategists fare on average? Well, basically what was nice to see from our strategists is that most of them actually outperformed on average, our benchmarks. You can see here the darker bars are our average strategist performance in the peer groups, and we can see that their returns are better than the index indices across the board. A lot of that has to do with some of the ways that they made some tactical shifts, as well as some of the positioning that they made. The one area of weakness, though, at the category level is on this bottom right, you see our bond diversifiers. Well, our bond alternatives as we list them here. You can see that they were down 5.6% and a lot of that has to do with the credit emphasis that they had in these portfolios. We know it's been driving returns for many, many years, but in this period, it was really hurt in the quarter and impact the average strategist results. As I talk about the positioning of the strategist, we can see here I've shared with you each of the different main components, the core markets, the tactical and the diversifying bond alternatives to show how they shifted allocations during this time of volatility. The top charts are really showing kind of what went on in the four major markets of equities, fixed income bonds, commodities and dollar, some of the driving impact there. What we generally saw is a de-risking going on. At the core markets it's pretty subtle, but there was a shift to reducing equities and moving to more defensive bonds. Not only reducing equities and moving to bonds, but reducing the what I'll call the non-core bond exposure. Things like high yield emerging markets, reduce some of that exposure. We saw that going on as well in the multi-asset income strategies. As we started to see rates rise and some of the core bonds offer higher yields, we started to see some shifts there. The tactical enhanced return is purely driven by Beaumont and some of the shifts that they made. Typically, their these strategies have tend to be more invested totally in the market. Where I want to spend a little time is on tactical limit loss and bond alternatives. You can see with the increased volatility in the market, the limited loss strategies really de-risked. It went from almost a full equity exposure down to about a 40% exposure on average. Some were a little bit more, some were a little bit less. You can see that big de-risking and volatility really picked up. That's what these strategies are meant to do, respond to market volatility and position for that level of exposure. What was also interesting on the bond side, if you look on the far right, those dark blue bars ramped, started to get the staircase upwards. Those light blue bars started to shrink. Cash, that yellow bar at the top, also increased. We started to see our bond managers also shift to more of that higher quality, safer bonds and moving out of some of the high yield emerging market areas that created a lot of that volatility. Zoë, could you elaborate a little bit further on some of the results of our strategists? Yeah. What was interesting is here we're sharing GPS. This is our broadest exposure, and this is one of our better performing strategies on the platform today. Why is that? What's causing some of the better relative returns that we're seeing? You can see the Q2 is outperforming the benchmark by around three, you know, almost 3% to 4%. That's on the Q2. Looking at the year to date, it's outperforming by more. The one year outperformed by a good amount, and then the three year as well. The light grayish bars is the index. On the top chart here, the dark bar is the core market. Then the two green bars on the top chart are the performance of the strategy gross of fees. On the bottom, what you'll see is the exposures of each of the different strategists used within the solution. The green is equities, the blue are bonds, the gray is alternatives, and the yellow is cash. What we're seeing is most of our strategists were de-risking. We can see that heavily with Atalanta Sosnoff U.S. Risk Control in the on the kind of three sets of bars from the right. The BlackRock, too, you know, one set of bars in from the right is moving more to dark blue. That's kind of that deep, high-quality bond. They really moved and became more defensive in those two areas. Having that tactical exposure in the portfolio helped with some of the positioning. Some of the bigger drivers though is that exposure you see on the far right, the managed futures exposure. The managed futures being up about 30% year to date, and these strategies actually up more than that. Having a 10% allocation really helped lift some of the returns here. Along with that, our portfolios actually de-risked during this period. The risk, one of the market signals moved to a defensive side, and we took some exposure away from equities and moved it more into the defensive areas of the market. Just an awareness in terms of some of the strategic baseline that we have here, the diversity into different strategies. The fact is that we as a portfolio management team, reduced our exposure to risk here, and our strategists really helped lift returns of the solution for the period. Let me dig a little bit deeper into our core market strategies and what we saw there. Same deal here is the top is really showing you the returns of the different strategists, and the bottom chart is showing you the exposures at each quarter end. What was interesting is seeing here is that State Street and JP Morgan saw the better relative returns. Our more tactical managers that adjusted to the volatility, essentially de-risking their portfolios. You can see here the darker green bars at the bottom starting to reduce, and the blue bars starting to increase, or the yellow at the top with the cash starting to increase, helped the return. On top of that, State Street is at their max position in commodities from a tactical blend. That really helped lift some of the returns in this period. Here I'm sharing Global Sector Rotation, which also has the sector exposures favoring the defensive utilities, the energy areas. That helped lift some of the returns we saw from this strategy. On the far right, you'll see New Frontier and AssetMark Market Blend. Both of these, and this is the US version, saw weaker relative returns in the period. A lot of that has to do with them, they tend to have got larger exposure into equities. That was some of the temperament there. On top of that, the US bias that we have obviously within US Market Blend, it's pure US, with a bit of a headwind in this period where the US markets trailed international. Overall, we can see the shift. Even though we see some differences in the second quarter and the year to date, over the three-year period, all of these strategies are still providing solid returns. With everything down over the quarter, with the exception of managed futures, how did our SMA managers navigate this volatility? Yeah, this was very interesting when you start looking at the top charts, and this is setting the scene, it's the sector exposures. Right on the top you will see from the best performing sector of Energy year to date for the half year, to the worst performing sector, Consumer Discretionary, there's 60 percentage points. 60, that is more than 60 percentage points difference in the top performing sector to the bottom. If we then exclude Energy since it was up so much and just go to Utilities, there's still a 30% difference in returns between the utility sector and the worst performing sector. What did we see as part of this big divergence? It was really a case that everyone dropped the hot, go-getting growth sectors like a hot potato and shifted into some of these kind of more defensive value sectors that had been so beaten down over the last several years. You can essentially see that on the chart on the top right, where large value is outperforming large growth by about 16.1% in the first half of this year. Just seeing that strength and how those sectors are differentiated drove into the returns we saw from our SMAs. On the bottom, yes, a very busy chart, but I just wanted to give you some variance from some of the better relative to the mid-level to the bottom relative. The strategies that really performed well had that value emphasis or a dividend emphasis. Here we're showcasing JPMorgan U.S. Value in the light green and BlackRock Equity Dividend in the darker green. Both of those tilted more towards the sectors you can see on the left-hand side of the chart on the top. What's also U.S. Value from JPMorgan benefiting from quality value, BlackRock benefiting from the quality dividend growth that they have. That was really more the defensive play in our equity SMAs. The two blue bars are kind of interesting. They're the Capital Group Global Equity strategies, the two SMAs we have from them. What you'll see is the global equity one that is, it tends to be a little bit managed a little bit more prudently and aware of downside, definitely proved itself over this period. It had stronger relative returns than its more aggressive global growth peer. In the second quarter, a difference of about 6% and for the year to date, almost 10% difference. Just the way that those two are managed differently and the emphasis of a little bit more defensiveness in global equity has allowed it to weather the storm a little better. Then the last two bars are our go-getting growth strategies. The strategies that everyone wanted as we came out of COVID kind of towards the end of middle and the end of 2021 and going forward. That's been the areas of the market that have been hurt the worst. It's been the high technology, it's been the small-cap, it's been the higher momentum strategy, and companies that have really hurt the most over that period. That's really some of the weakness that we've seen from some of our SMAs. You can see over the long term, they're still providing pretty solid returns on that three-year basis. Zoë, with bonds seeing their worst start on record, what about our diversifying strategies? How are those doing? Yeah. What was interesting as I went into this data was looking at the divergence that you see on the second quarter. If you look on the top chart, you'll see a return of -1.6%, that's for Dorsey, ranging down to the -7.8% for Beaumont. That also ties through to some of the returns you see year to date. It's a similar pattern. When I started thinking about this, I thought about what was really driving bond returns, and it really came down to duration and credit. If you look at the bottom chart, what we see is that Dorsey Wright and JP Morgan, the other strategy that held up relatively well, have much shorter durations. These are durations as of the quarter end. Dorsey Wright about 3, JP Morgan Absolute Return about 2. That's compared to the Barclays Agg with somewhere between 5 to 6 right now. Much shorter duration across the board. On top of that, Dorsey Wright sitting at its most defensive positioning. It moved to that position in the first quarter, where it moved to very short-term bonds and 20% in TIPS. Very defensively positioned. That's helped lift the returns in this period. JP Morgan, not only is it short duration, it does have some alternatives in part of it. It has been shifting a little bit more to more kind of what I call higher quality type areas and that higher cash exposure. That's helped shift some of the exposures and lift the relative returns there. Compare it to the two on the right, longer durations, you're now at 4, 3 or almost 5, or just a little over 5 from PIMCO and Beaumont. Now PIMCO, no surprise, it's got higher duration 'cause it's emphasizing yield. No surprise it's been more in the credit or non-core bond section because that's areas where you were seeing higher yields. They've got a large exposure in emerging market bonds. So that caused some weakness. Then to talk about the Beaumont, that's really got some equity sensitivity. You can see there it has been increasing its equity exposure on the bottom on the quarter by quarter basis. That's some of the key stuff as we looked across the bond diversifiers. If we now look at managed futures, this is kind of the star of the platform right now with positive returns across the board. What really drove it? Well, most of our strategies were short equities. You see there that the S&P 500 was in a downward trend. Being short equities was a positive for returns. You then see that they're mainly short bonds, and you see the treasury yields going up. We know as yields go up, prices come down, and so that was a benefit to returns. You see the oil that was on a trend upwards. We had a little bit of a dip right at the end of May and going into June, but it's been tending to be in an upward trend. That was a benefit. Then they're long on the dollar. Look at the trend of the US dollar that we've had this year. All of the positioning has actually worked out this year, and this is why it's been beneficial to have this exposure as part of the portfolios. Yes, it's the insurance for those times of crisis, and we sure needed it over this period in time. It's really been that positioning at different levels and different levels of volatility in the underlying strategies that's led to the returns that we see here. Overall, that's how our platform stepped up, Vicki. Due diligence is a foundational element of the AssetMark platform. It's the reason I think many advisors choose to work with us. The trust and confidence they have in us, keeping track of all of the great things that you and your team do, Zoë. What updates do you have for us this quarter relative to the strategists and managers that are available? Yeah, there's not a lot to report. One change is that we have moved Savos off of watch and back to satisfactory. With the addition of Christian Chan to our organization and the work that that team has done and the systemized approach that the Savos strategies have run at, we've seen no deterioration whatsoever. We feel confident enough to move them back to a satisfactory status. Now, on top of that, we also know that Christian's been busy hiring some new folks to be added to the portfolio management and research team. Just some news there, that's beneficial across the portfolio management team that's responsible for all of our proprietary strategies, not just Savos, but Market Blend, GPS, Guided Income, and the ArrowMark strategies as well. Across the board, it's that single team running them all. The other change that we made was really about AQR. We moved it to a terminate status, and I believe the notifications went out yesterday to you all as advisors. This was really a case that we've had some real concerns about the organization and the process. It comes down to a lot of people have left the organization. We've seen a lot of asset drop in the managed futures space, and the team's seen pretty significant changes as well. On top of that, there's been changes in the signals that they've been using in the underlying portfolios, and that's caused us some concern as they seem to be pretty reactive to what had been pretty substantially weak performance for a long period of time. While people would look at the return today and say, "Why are you firing it? It's up 50%." Well, it's because of all of these changes and the fact that this fund has a lot of volatility and leverage associated to it that you're seeing these high returns. Just as quickly as they've gone up, they can just as quickly come down. Because of the other concerns around people and the process, we feel it's, we need to move it into that terminate status. Just an awareness on the changes. Outside of that, you can find all of the updates on our status reports that are listed here on eWealthManager under the investment page. That's the updates at the platform level, Vicki. Zoë, we have an environment that we have not experienced in quite some time. For some financial advisors, perhaps they've never experienced it. For some investors, they've never experienced it. We have high inflation. We have rising rates. We have slower growth. What recommendations do you have for advisors around constructing portfolios in this rather difficult and unpleasant environment? You couldn't have said it better about the environment being very unpleasant because as we think about it, these are three things we focused on last quarter. Rising rates and higher inflation. The cause of rising rates is really higher inflation. The Fed's out there trying to reduce growth. They're trying to slow the growth down. The question comes into how slow is it going to get and how do we need to think about positioning. We really think about three factors. One, think defensively. We're gonna be into tougher times. One, think about being active in terms of the types of strategies you're using. Then finally, think wisely. Don't lose all the investment disciplines that we've been used to having in this period of time. With the increased fears of inflation and heightened volatility, how can we think about being more defensive in portfolios? That's a great question, and one we get a lot is about how do I protect my portfolio from inflation. Normally, I've shown an inflation beta exposure here, but what I also added this time, which was an idea I got from State Street, was to look at it also with regards to correlation to the 60/40 portfolio. What you'll see is the commodities is just on the far right there, the greatest sensitivity to inflation. Having commodities in the portfolio really is allowing it to provide some inflation sensitivity. Its correlation to 60/40 is kind of in the middle there, but it does have a fair amount of volatility. Kind of think of it as kind of being an area that can be take you. If you think about where do you fund it from, think about it from both equities and bonds, not just one or the other. If we think about complements to equities, you look at those, the global real estate, US real estate, natural resources, the gray spots. They're areas that you can think about that do have sensitivity to inflation and can also have closer correlation to that 60/40 in global equities. We're really trying to think about having that higher exposure and using those as complements. Then on the bond side, there's the two yellow dots there, TIPS and gold. They can help complement bond exposures. Because you can see they have a positive sensitivity to inflation, while bonds have a negative sensitivity to inflation. They can be used as complement to bonds. The question now becomes, well, how do I do that? Well, we don't think it should just be one or the other, but really provide a mix, because that's gonna give you the full diversification benefits when we're thinking about correlation to a 60/40. That's inflation. Now thinking about defensiveness, think about things in terms of what has cash flows today and not being promised in the future. And that's really what we're seeing here in terms of defensiveness. Companies that are able to focus on today's cash flows rather than cash flows in the future that might not happen or may happen, really is seeing solid returns. And not only that, but they're paying dividends. If we look here in the 12 months ending May 2022, $1.9 trillion was paid out in dividends. That's a 20% increase over this period of time. Just having that really identifies that companies and management have confidence in their cash flows, and that they can afford to pay these cash flows out, and have confidence in the future earnings. Really thinking about dividends. Then on the right, you'll see the areas that have the biggest dividend yields. Now, no surprise, it's more of the kind of what I'll call safer, defensive, more value type sectors. How are they now benefiting from this inflation environment? Well, one thing to be aware of is that with all the surge we're seeing in electric vehicle usage across the country, there's a need for base metals, nickel, copper, all those factors that drive into building these vehicles. Not only that, but with higher inflation, these materials companies are benefiting from that scenario. Just an awareness about, you know, thinking about the environment, thinking about how some of the growth that we're seeing in some of these themes can benefit some of what would be considered old sleepy companies and to drive forward. That's kind of some ideas. Now, how do we act on it? Well, we have some options on the platform. The inflation mix, you can look at State Street or New Frontier. You can see the mix of exposures that they have already within their portfolios. Then if you're thinking about value and favoring kind of the more defensive areas, whether you want an SMA, whether you want a strategy, or one that's emphasizing value as part of the factor-based stock selection, but also can be defensive in terms of the equity reduction. Savos uses risk control. Then if you're thinking of dividends, we've got two SMAs that emphasize the dividends there, along with the Savos high dividend strategy that emphasizes the dividends through the stock selection. How to use it, how to select it? Well, one is you can just go pick a strategist. What you'll see here is under the inflation sensitivity, just go pick the State Street strategy and use it in your portfolio. Or you might want to pair it on this bottom left here, along with, say, a core strategy like JP Morgan or maybe Market Blend or New Frontier, whoever you might be using. Using it alongside it and tilting more towards that strategy that has the inflation protection in it. That's the bottom left. If you're thinking about dividends, well, we could use the MarketDimensions alongside Market Blend, give you core broad market exposure, but have part of it be tilted more towards value. Then finally, build your own mix. You could have a core exposure and build your mix with an equity SMA and a tactical bond manager on the bottom right to get you that full exposure and put some defensiveness into the portfolio. Zoë, passive investing saw really strong returns over the era of low volatility that we had, and I think we have many, many advisors that started moving towards primarily passive vehicles. Should we be thinking differently about active management and applying active management as part of the portfolio construction in this time period of unpleasant higher volatility? Now, what was interesting here is you think about all of the stocks that have been driving the equity market. It's a handful. Here's a great chart from J.P. Morgan shows the green line, the top 10, and you see their P/Es, their valuations went pretty high while the rest of the S&P 500 stayed fairly reasonable. Now they've really bottomed out and come down pretty substantially. While the rest of the S&P 500 is staying, you know, yes, it's come down and it's probably considered a little cheaper than before. When we think about it, you know, things are now kind of on sale. There's opportunities out there. In the What's become a headwind for active managers with the index returns of the top 10 driving it's become somewhat of a tailwind now because they're the areas that have been hurting the most. Selectivity is really big, seeing some benefits. On the right, what you're seeing is the percentage of equity funds that have outperformed their benchmark, and this is actively managed. What was interesting to note here is every time there seems to be stress in the market, the percentage of active fund managers outperforming increases. If we think about an environment that we're likely gonna see more volatility for a little bit longer than we're probably used to seeing it, then having some active equity management in there would be helpful. On top of that, let's think about bonds. Just if we think back to bond basics, yields go up, prices go down. Duration is really that measure of sensitivity. Sorry, I got my numbers wrong earlier. I thought the bond duration was between 5 and 6. It's actually 6.5 years, and that's the 60% more risk in it than we saw in 1994, which was the last time we saw aggressive rate rising. What does that mean? Well, if the index yield rises by 60 basis points in the rest of this year, which is a third of what it's risen today, returns could see a drop of 4%. There's a lot of bond duration risk in the index right now. If you're holding the Bloomberg Aggregate Bond ETF, there could be a lot of risk in it unless you're adding with it and having tactical managers work around the bond exposures. What you're seeing on the right is the duration of the different bond sectors, the yields that they're currently getting, because of course, yields have gone up. We've also included here the real yields. Once you take into account inflation, and this is based on the one-year expectation as of May, you can see the bond yields. You know, a lot of them are still like real yields are in a tough area. Really need to be thoughtful about how we're positioning bonds and using a tactical manager to do that. If we think about being active on our platform, there's a few ways to do it. We could be active from our core balanced portfolios. American Funds, JP Morgan, really think about having some security selection in there. We can use that as kind of that active baseline. If we want to have just equities being active, we've got all of our SMAs. I'm using the two here, which are our core managers, our U.S. or our global emphasis. On the bottom left, you can see we've got managers that are active in sector selection. That could have some benefit too. On the bottom right are managers that are active in the bonds, whether it be from a rotational sector perspective, whether it be from security selection or whether it be including it in the use of alternatives. Some portfolio ideas. If we want to do active core, maybe we're using a core market strategist that is very passively implemented, like New Frontier. We could just add in some exposure to American Funds to kind of complement that and have active security selection alongside the passive. The bottom right is building our own blend. We're using a core market index-based approach, and we're complementing it with active management from the equity side with Capital Group along with DoubleLine Low Duration. That's a way to do it if you're looking for individual kind of what I'll call credits or security selection within equities. On the right is focused more on sectors. We could do it from a perspective of using a New Frontier profile too, with a State Street Global Advisors Sector Rotation profile five and balancing them at 50/50 is going to give me a 60/40 experience. I'm getting all the sector rotation at the equity side from State Street on the equity side and balancing it with the risk management of New Frontier. The bottom right is doing kind of a similar deal of having a core market exposure and complementing it with sector rotators. With JP Morgan, the use of alternatives, they're going a little out beyond traditional bond sectors across the board. Money isn't everything, but it touches just about everything. What clients can and can't do, what they can and can't give, what they can and can't pay for. One of the hardest jobs for financial advisors is to help clients, investors focus on data, not drama, on the advisors have worked so hard to build. Zoë, a lot of emotion in play right now. We see investors, unfortunately prone to making some bad decisions and moving out of the market at exactly the wrong time. We also see investors sitting on cash and being unwilling to invest while the market is, as you said earlier, on sale. How do you recommend advisors talk to clients about thinking wisely, rather than emotionally? Yeah, you gave me the great setup, so I don't need to remind people that emotions can lead to bad decisions. Really, as we think about this, as we look at the portfolio returns, we talk about market cycles. Well, in a cycle there's an upside and there's a downside. It's part of the living microorganism that the market is. It's dynamic, it adjusts. We can look at kind of prior market cycles to get an indication about what could potentially happen, not what will, but what could, and learn from history. We think about it. We've gone through a period of rising rates. What happens during those periods to the major asset classes? What you're seeing here is that from 1977 through 2018, during periods of rising rates, bonds, equities and international equities were all up over those periods of time. We shouldn't be running scared about how to invest our portfolio during periods of rising rates. What about recessions? Because that's now rising in terms of probability as we have this slower growth. Are we going into soft landing, hard landing? How's the Fed going to respond and react? What you can see here is if we look at every recession, every recession is a little different. If you look at this, you know, the 1-year, 3-year, 5-year, 10-year cumulative return after a recession is pretty strong. What we tend to see is that the best days, the best months, the best weeks in the market tend to come after the periods of most, I want to say disaster, but that's the wrong word. The greatest fall in the markets. You know, that's just the nature of the beast. As you see markets fall pretty substantially, our stomach churns, and we want to get out. That's really the chart on the right we're seeing here. It's easy to get out. The question becomes when to get back in and how to time that right. The example here, we're showing that the market came down 45% and an investor got out, and they sat on the sidelines until the market rebounded to its prior high. Went back in. You can see it's a difference of almost $20,000 with on this 10K space. In terms of return and level of value of wealth that you've lost by moving out of the market at the wrong time and letting emotions kick in. The other factor to be aware of is, as I mentioned earlier, things are on sale right now. If we think about it, when we go to a store, how many of us like to buy things on sale rather than buying things on full price? I know that's me all the time. I'm going to the sale racks. When we think about it, we look here at kind of the number of times that some of the growth areas of the market have fallen by 10%, 15%, and 20%. Blue bar is 10% drop, gray bar is 15%, and 20% is the green bar. What you're seeing here is it happens fairly frequently. We went back to 1995 to look at this data with this index data here. We then looked at it and said, okay, after that 10%, 15% or 20% drop, what's the average return over the next 12 months? What you'll see is that we've seen some pretty decent returns over the next 10 to 12 months. We look at this and we go across the board and think about it to say, the deeper the drawdown, that the higher tends to be the rebound. If things are on sale right now, and we can think about that, then if we're willing to buy growth last year when prices are high, why are we not willing to buy them today? It's because it's stomach-churning. It makes you sick to the stomach. What you need to remember is that when things are making you sick to the stomach, it's probably when you're gonna make some of the best returns in your portfolio. That's the chart you see on the right. It's essentially in doing an investment of $100,000 into the S&P starting in 2007 and evaluating its value at the end of the period. What you see is that during the global financial crisis, it's created the most wealth over this period of time, for the returns. It's really about being in the market rather than timing the market. If you're concerned about it and not sure which manager to pick, well, think about using a strategist on our platform that's very diversified. We have some proprietary strategies through WealthBuilder or GPS Accumulation that can allow you to get that step into the market. We'll take the decisions from you. Go into a third party with our new strategy from BlackRock, which has some alternatives alongside with multi-manager exposures across the board. Think about it in that way in terms of there are ways and means to get people back into the market and moving out of cash and reminding them that some of the best investments they can make start during the times that they feel, what I'll call, is the most sickest, which is not a word, but the worst stomach-churning times in the market. With that, Vicki, back to you. Zoë, thank you. You always give us such good sound bites and such good talking points. For those of you who like to listen to all of our quarter end webinars, I'll remind you that you can find the entire series on ewealthmanager.com, and you can certainly, I would encourage you to register for the End Investor webinar that is scheduled for next Friday, July 29. Zoë has given us lots of really great ideas for how to be prepared for these really unpleasant times. I think we might need a raincoat, a storm shelter, and an umbrella. Although these nice sunny days, like what we're having today, certainly are nice. As Zoë has shared with us, we want to think defensively, we want to think active, and we wanna think wisely, really working hard, and we know it's hard, to help your investors stay invested and get cash in play at this time. I will remind you to visit our Volatility Playbook that we're continuing to add comment to or commentary to and content to. Zoë, I love your comments. It's about time in the market versus timing. It's about investing success over time versus every time. It's a reminder that in these really difficult markets, it is where opportunity lies. Think defensively, think active, think wisely, and help your clients avoid the emotional rollercoaster ride of most investors that causes those really unpleasant performance differentials between the returns of the market and the returns of the investor. I will... Zoë, I do wanna thank you so much for the prepared comments. I wanna thank everybody who stayed in there with us a little bit longer. We went a bit over. I do wanna just take a moment to take any questions that you might have. Go ahead and feel free to chat those in. All right, Zoë, we don't have any questions in the chat right now, so I'll just take this opportunity to remind everybody again, lots of content on the Volatility Playbook. Another opportunity to go and listen to Zoë's, Christian Chan, and Kasey's webinar on the markets. This replay will be sent to you for those that want to listen to it again, to get all of Zoë's great ideas in there. Yes, we will work hard to get you a client-approved piece of Zoë's slide with all of those wonderful emojis. With that, I will sign off from this particular quarter end webinar. Zoë, I wanna thank you and to all the advisors on the line, we appreciate the opportunity to help you every single day make a difference in the lives of your clients. Hope you all have a really terrific rest of your day.