Meet Our Principals

Alton Cogert,
President & CEO

Mr. Cogert can help answer any questions related to these economic indciators, as well as your insurer or risk pool's investment strategy.

Q2 Recap & 2nd Half-2023 Expectations:
Key Financial Market Issues for Insurers & Risk Pools

Alton Cogert, CFA, CPA, CAIA, FDP, CGMA, President & CEO, Strategic Asset Alliance

Dan Smereck, Managing Director & Principal, Strategic Asset Alliance

Alton and Dan highlight SAA's review of the second quarter of 2023 and what to look out for in the future of the financial markets. Highlighted in this ~12 minute video include drivers in equity performance, the state of fixed income markets on insurer/pooling portfolios, and where inflation is trending.

Trouble viewing? Watch here

Key Takeaways

  • Although fixed income portfolios continue to produce steady income, the decline in fixed income portfolio market values (due to sharply higher yields) outpaced the positive, steady income return (i.e., clipping coupons) and generated a period of sustained drawdown from August 2020 to October 2022.
  • Equity Performance: For now, expectations of long-term growth (i.e., higher valuations) are accruing primarily to those sectors/companies most exposed to technology, especially those closest to the AI frenzy..
  • Reinvestment yields across the U.S. fixed income universe are multiples higher that just 18 months ago and continue to drive risk-adjusted investment income higher for all insurers and risk pools.
  • Always consider the relationship between short-term pain (i.e., mark-to market risk) and expected long-term gain that is tolerable to your organization’s enterprise goals and objectives.

About SAA's Leadership >>