Broadway Bank Wealth Management will develop an investment strategy to help protect what you’ve worked so hard to build.
By The Portfolio Managers at Broadway Bank
Recent headlines buffeting the stock market have been dominated by Russia’s invasion of Ukraine and, to a lesser extent, rising inflation. The two issues are not entirely unrelated. Recent bans on trade with Russia have driven prices of oil and other commodities higher, but inflation became a concern well before Russian troops crossed the Ukrainian border. You might be wondering; how should investors respond? At Broadway Bank Wealth Management, we collaborate with our clients to provide guidance and advice on investment strategies, helping them navigate challenging economic and market conditions, such as those we are seeing now.
Troublesome headlines and market declines feed what psychologists call a “recency bias,” where we place disproportionate emphasis on the latest events and newest information in our decision making. The result is loss of long-term focus as we overreact to recent market declines while forgetting about the stock market’s 100% cumulative return over the period of 2019-2021. While images in media coverage can be heart wrenching, and the atrocities endured by those directly touched by armed conflict are both real and severe, effects on markets are generally short-lived.
Consider how the market behaved on news of the Iraqi invasion of Kuwait which began on August 3, 1990. As measured by total return of the S&P 500, the market declined 6% in the following month. Three months in, it was down more than 10%. The decline shrunk to just 5% at the six-month point. At nine months, the market was slightly higher that it had been just prior to the invasion (Bloomberg). This pattern is typical for market reactions to news of major armed conflicts. A survey of instances over the last 90 years showed the median market decline was about 8% while the market was about 10% higher a year later (BCA Research). While these statistics are not intended as a forecast for how the current scenario will play out, they do lend perspective. The message we take from them is to think twice before abandoning a well-considered, long-term investing plan because of a patch of market volatility which may not last as long as the crisis which triggered it.
The greater danger to an investor’s wealth is inflation. The Bureau of Labor Statistics reported a 7.9% annualized rate of inflation in February, the highest since 1982. Inflation is an insidious thief that robs the purchasing power of your money over time. If your investment returns equal inflation, then your “real” wealth has not changed. While investment exposure to inflation-sensitive commodities such as gold or oil may help to combat inflation in the short term, the primary weapons against it are growth assets. These include stocks and real estate whose values have historically risen over time at a rate higher than inflation. While we may feel the impulse liquidate our investments to wait out a crisis, doing so would be far more likely to harm our efforts to fight inflation beyond the near term, while inflation does its greatest damage over the long term. Therefore, Broadway Bank Wealth Management strongly advocates sticking to a well-designed investment plan as a way to play the better odds for long-term success.
For 80 years, Broadway Bank has been an integral part of South-Central Texas, evolving into one of the largest independently owned banks in Texas. We believe in giving our clients sound financial advice that considers their unique goals and risk tolerance. Your plan-based approach will include a comprehensive asset management proposal, protection and distribution strategy to help you successfully reach your long-term financial goals. As your fiduciary, we will always hold ourselves to the highest standard of care by placing your interest above our own.
ABOUT BROADWAY BANK’s INVESTMENT MANAGEMENT TEAM: Our in-house, locally based Investment Management team is comprised of impeccably credentialed, best-in-industry professionals. We believe in giving our clients sound financial advice that considers their unique goals and personal preferences. Our team will implement your strategy with a custom-bult investment solution to help you successfully reach your goals. Clients have complete transparency and easy access to their team by phone, in person or online. If you are interested in learning more about Broadway Wealth Management, contact us at bwealthmanagement@broadway.bank or visit broadway.bank/wealth.
Broadway Bank Wealth Management goes beyond the surface to protect this unique asset for future generations.
By Reid Reagan, VP Oil & Gas/Mineral Department Manager
Oil and gas mineral ownership is a unique privilege that is often passed from one generation to the next. It can create a significant amount of wealth for you, your family, and its future generations. While mineral ownership is an exceptional opportunity for many, it also comes with challenges that often make ownership complex and difficult to manage compared to more traditional interests. At Broadway Bank Wealth Management, our dedicated team of professionals have unmatched expertise to assist mineral and royalty owners by providing a comprehensive, concierge-level approach to mineral management to ensure owners realize the full potential of this unique asset.
According to the National Association of Royalty Owners, there are an estimated 12 million oil and gas mineral owners in the United States. Together, these owners collect some $50 billion in annual royalty payments. For many individuals and families, mineral assets form the foundation of their wealth generation. Yet too often these assets are at best under-managed, resulting in a significant loss of financial opportunity. In a time of exponential change in both the global economy and the oil and gas industry, it is imperative that mineral owners have a complete understanding of their mineral asset portfolio and its full value potential.
There are many benefits to enlisting the services of a certified professional to assist with the management of your mineral and royalty assets. First, confirm and verify that you are getting paid correctly and timely for your royalty payments. It’s critical to monitor your monthly payments for accuracy and to ensure that you are getting paid in compliance with the terms of your oil and gas lease. Second, to reclaim time. The effective management of minerals can be very time-consuming and can become overwhelming to many individuals without the necessary tools and skillset. Third, to ensure that your future generations are in the best position to benefit from your mineral assets. This is accomplished by maintaining an up-to-date inventory and status for all your oil and gas assets and when required, managing the conveyance of mineral ownership to properly transfer title and associated revenue.
For 80 years, Broadway Bank has been an integral part of South-Central Texas, evolving into one of the largest independently owned banks in Texas. Our team empowers mineral owners to protect and optimize the value of their mineral holdings. Our team offers clients industry leading full-scale management services from maintaining current inventory and status for all your assets to marketing unleased mineral properties. We combine decades of industry experience along with cutting edge technology to help mineral and royalty owners navigate the challenging energy environment.
ABOUT REID REAGAN, CPL | VP, OIL & GAS/MINERAL DEPARTMENT MANAGER: Reid joined Broadway Bank in February 2020 with over 13 years of experience in the oil and gas exploration and production industry as a mineral and land professional. He has extensive experience in negotiating acquisition and divestiture transactions, oil and gas leasing, business development, prospect evaluation and due diligence. He has spent years developing his oil and gas transactional proficiency while working multiple oilfield basins including the Permian Basin, Anadarko Basin, Powder River Basin, Eagleford Shale and the Barnett Shale. If you are interested in learning more about our oil, gas, and mineral management services contact Reid Reagan at jreagan@broadway.bank or visit broadway.bank/wealth.
Nini Jewels Partners With Saks Fifth Avenue To Debut Fall Collection
By Eleanora Morrison
Ethelyn Berino, Cliff Bueche and Nini Hale
THE SETTING: In preparation for the 25th Anniversary of the Nini Jewels partnership with Saks Fifth Avenue, Saks San Antonio hosted an exclusive in-store luncheon in Nini Hale’s honor to showcase her new fall collection. Invited to the event was an intimate gathering of clients and Saks Fifth Avenue general management. Heidi Parkhurst, Vice President General Manager and Susan Rice of the Saks jewelry department welcomed their guests in attendance.
Nini Jewels, Fall ’21 Collection
Rooted in History & Rich in Culture, this is Nini’s Story
Nini’s Jewelry was first showcased at Saks Fifth Avenue where the designs continue to be sought after by women with impeccable taste. Every precious NINI piece is hand made with the commitment of the best craftsmanship and attention. Each piece will bring joy to the person who puts it on. We integrate the ancient world to spring modern designs.
THE STYLE: Nini’s fall collection was debuted at the luncheon in a showcase of autumnal technicolor. Featuring nature’s kaleidoscope of deep emerald greens, topaz golds, Bordeaux burgundies and marvelous mauves, the jewels were brought to life in all of their shimmering splendor, wowing and inspiring guests to add the pops of timeless glitz to their glamorous collections.
Madeline Slay, Denise McCrea and Charmaine Gomez
Luncheon Ambiance, Saks Fifth Avenue San Antonio
Heidi Parkhurst and Susan Rice
THE BRAND: Jewelry designer Nini Hale comes from an artistic Thai family whose clients have included celebrities, art collectors and sophisticated jewelry buyers from around the globe. Every Nini creation is brilliantly and vibrantly colorful and engineered with innovation for lasting value and generations of enjoyment. Nini Jewels spans generations, starting from Nini’s grandmother, who perfected the art of the “birdcage” bracelets. Driven by her vivid imagination since childhood, Nini Hale created Nini Jewels as an outlet for creative expression. Founded in the 1900s, Nini Jewels expanded into the United States in 1992.
Experience The Passion, Live On Stage Oct. 22nd-Nov. 7
Photos by Lynn Lane, courtesy of Houston Grand Opera
A tragedy of obsessive love, Bizet’s Carmen from 1875 is considered the most popular opera in the world today. It is impossible not to smile with recognition when the well-known first notes of the prelude ring out from the orchestra. Mezzo-soprano and HGO Studio alumna Carolyn Sproule takes on the role of the famous bohemian whose beauty, confidence, and provocative lifestyle captivate the soldier Don José, sung by incredible tenor Richard Trey Smagur, although his jealousy will ultimately destroy them both. Bass-baritone Christian Pursell in his HGO debut as the bullfighter Escamillo and Houston favorite and HGO Studio alumna soprano Heidi Stober as Micaela are ensnared by the passion of the two lead characters. Expect striking costumes and gorgeous dancing in director/choreographer Rob Ashford’s acclaimed production, conducted by Lidiya Yankovskaya in her HGO debut.
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Visit the Houston Grand Opera website HERE to book your tickets today.
Broadway Bank Wealth Management focuses on selecting the right investment strategy for your needs
By Kelly Corbiere, CFA, CMT, CFP® and the Portfolio Managers at Broadway Bank Wealth Management
Bitcoin, the original cryptocurrency invented in 2008, has been attracting headlines as an extremely popular and widely followed investment opportunity. Bitcoin is also a technology and could be an inflation hedge, a tool to guard against political risks, a vehicle to democratize monetary policy, an anonymous method of transacting for scrupulous and unscrupulous players alike, or an investment. In short, the reasons someone may want to hold Bitcoin are abundant.
A common question we get is whether Bitcoin is a good investment. As with any investment, the answer depends on what it is worth relative to its price. Investments are traditionally valued based on the cash flows they generate. If the value justified by cash flows is more than the current price, it signals that investors should buy. The issue with Bitcoin is that it does not have cash flows as a business does, making it impossible to value using traditional models. Without a value that is anchored in economics, the price of Bitcoin moves in response to investor behavior which is motivated by factors that are difficult to predict or quantify making it a speculative investment. In this context, “speculative” means the basis for the investment decision is based more on assumptions than on hard data, well-established relationships among quantifiable factors and prior experience in similar scenarios.
The long-term price trend for Bitcoin has been generally positive. However, its volatility has been 15 times higher than that of the US dollar in foreign exchange markets, which are considered volatile in their own right. Bitcoin has experienced seven drawdowns of 70% or more in the last decade compared to just one drop of that magnitude for the S&P 500 over almost a century. Bitcoin has experienced four bear markets, defined as price drops of 20% or more, so far this year. It lost 14% during a single hour of trading during April 2021. One Wall Street firm calculates that if you missed the 10 best days for Bitcoin between 2013 and 2019, the return on your investment would be an average annual loss of 44%.
Bitcoin is no longer unique and the number of risks to its dominant position are growing. Thousands of similar crypto assets exist because barriers to entry are minimal. Although Bitcoin remains the largest cryptocurrency based on market capitalization, its market share has fluctuated wildly since its launch. Some of Bitcoin’s competitors have arguably superior technology. Central banks are also entering the game with the launch of their own digital currencies that may serve as formidable substitutes for Bitcoin over time. Moreover, tightening regulation, taxation and counterparty risks (as evidenced by theft directly from exchanges) offset some of the benefits of owning cryptocurrencies.
Bitcoin is certainly a disruptor and has gained legitimacy as its uses have broadened. Whether Bitcoin will continue its reign as the most widely used cryptocurrency over the long-term is less than certain. Neither the risks nor potential returns are easily quantifiable. A speculative position in Bitcoin could result in either large gains or losses for short-term and long-term investors alike. This exemplifies the caution frequently given to investors that past performance is no guarantee of future returns. While we are bullish on the blockchain technology behind Bitcoin, we prefer to obtain exposure to its application to cryptocurrency indirectly via companies that are beginning to use, accept or trade cryptocurrencies such as PayPal, JPMorgan and Bank of New York Mellon, to name a few. The crypto market is still in its infancy. We submit that investors seeking to protect their wealth carefully research investments in companies profiting from increased use of cryptocurrencies, because for now that is the more prudent way to gain exposure rather than holding substantial positions in the cryptocurrency itself.
For 80 years, Broadway Bank has been an integral part of South Central Texas, evolving into one of the largest independently owned banks in Texas with more than $4.6 billion in assets and nearly $3.0 billion in Wealth Management assets. Broadway Bank offers a full range of financial services including personal, private, business, mortgage banking and wealth management. Broadway Bank is committed to enhancing the banking experience through leading edge technology. With financial centers across San Antonio, Austin and the Hill Country, Broadway Bank delivers modern banking, locally sourced and personally delivered.
Kelly Corbiere
Jeff Nelson
ABOUT THE AUTHORS:
Kelly Corbiere has more than 20 years of experience in investment management. Prior to joining Broadway Bank as a Senior Vice President, Portfolio Manager. She worked as a global equity analyst and prior to that she was an investment manager in a wealth management group for a major U.S. bank. She spent the early part of her career in fixed income. Kelly has earned the Chartered Financial Analyst (CFA) and the Chartered Market Technician (CMT) designations and is a CERTIFIED FINANCIAL PLANNER™ professional.
Broadway Bank Wealth Management’s Portfolio Management team is led by Jeff Nelson, EVP and Chief Investment Officer. Jeff has over 14 years of professional investment management experience, including five years in private practice providing investment management and financial services to clients. He retired from the United States Air Force after 20 years of service at the rank of Lieutenant Colonel. Jeff has earned the Chartered Financial Analyst (CFA ) designation and is a CERTIFIED FINANCIAL PLANNER™ professional.
If you would like to learn more about our Wealth Management Services call us at (210) 283-6700 or visit https://broadway.bank/wealth.
Oil and gas mineral ownership is a unique privilege that is often passed from one generation to the next. It can create a significant amount of wealth for you, your family, and its future generations. While mineral ownership is an 
