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What We Do

We provide investment banking, research, sales and trading, asset and wealth management, public finance, insurance, private capital, and family office services.

About Us

We are a family-owned financial services firm that values client relationships, long-term stability, and supporting the communities where we live and work.

The Stephens Story

The idea of family defines our culture, because each of us knows that our reputation is on the line as if our own name was on the door.

Leadership

Our reputation as a leading independent financial services firm is built on the stability of our longstanding and highly experienced senior executives.

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We are committed to corporate philanthropy; economic and financial literacy advocacy; and diversity, equity, and inclusion initiatives.

Our Brand Ambassadors

Stephens is proud to sponsor the PGA TOUR, LPGA Tour, and PGA TOUR Champions careers, as well as applaud the philanthropic endeavors, of our Brand Ambassadors.

Making Connections

We host many highly informative meetings each year with clients, industry decision makers, and thought leaders across the U.S. and in Europe.

Our Businesses

Capital Management

We provide fiduciary investment strategies to public-and private-sector institutional clients through asset allocation, consulting, and retirement services.

Fixed Income Sales & Trading

Decades of proven performance and experience in providing tailored fixed income trading and underwriting services to major municipal and corporate issuers.

Institutional Equities and Research

Proven industry-leading research, global market insights, and client-focused execution.

Insurance

Customized risk management, property & casualty, executive strategies and employee benefits solutions that protect our clients over the long term.

Investment Banking

We assist companies with accessing capital through innovative advisory and execution services that help firms achieve their strategic goals.

Private Capital

We have been a trusted and reliable source of capital for private companies for over 70 years.

Private Wealth Management

Our experienced Private Client Group professionals develop customized investment strategies to help clients achieve their financial goals.

Public Finance

We are a trusted municipal advisor with proven expertise in public financings. We also work with clients in negotiated and competitive municipal underwritings.

Market Trends

Strategies to Manage the Volatility of the Market Part 2

Oct 20, 2022

Stay Invested and Focused on the Long-Term Objective

Market volatility can deviate in the short-term for equity markets, but staying focused on your long-term objective is important. With the S&P 500 Index as a metric, historic equity annual returns have varied from –37% in 1995 to 38% in 2008. Rolling annualized returns over a 20 year period have posted positive returns since 1993.

The Fed Fund target rate was lowered to 0 to 0.25% in March 2020 and remained there until March 2022. However, the Fed has raised rates five times since then, and that has some fixed income investors concerned about how their portfolio was affected. But it is important to look at these periods over the long-term and not over the short-term. From 1973-2021, fixed income annual returns have ranged from -2% in 1994 to 26% in 1982. Rolling annualized returns over a 20 year period have posted positive returns since 1993.

A blended 50/50 portfolio posted positive returns on a 5, 10 and 20 year rolling basis, which indicates that asset class diversification can potentially mitigate some of the risk, but not all.

The gap narrows the longer you invest. The lesson here is to prepare for the long haul and try not to overreact to periods of uncertainty.

Assessing Risk and Return

Investors should ask themselves if their expectations for a return on their investment properly compensates them for the risk of loss. For many, the main concern is not the potential return but the probability and size of a loss. Risk and return can vary widely over different historical reference periods, and it is advisable to understand the spectrum of risk to which an investor may be exposed.

Asset Allocation and the Risk Spectrum – What is Your Comfort Level?

Being invested in the market has inherent risk, but there are different levels. Your Stephens Financial Consultant can advise you on an asset allocation strategy that meets your time horizon, goals and tolerance for risk. All of these factors are taken into consideration when creating a portfolio based on your needs.

You may have a long-term time horizon, but a low tolerance for risk, which means an aggressive portfolio may not be your best option. But too conservative an allocation may not provide the growth you need to achieve your long-term goals. Our goal is to work together to set realistic expectations and maintain a long-term investment strategy.

Next Steps

It is impossible to predict the future, but expecting market volatility is a good bet. Diversification based on your time horizon, goals and tolerance for risk should all be taken into consideration. History shows that diversification and rebalancing are the best tools to reduce portfolio volatility and provide a smoother ride through the peaks and valleys of the market. Contact your Stephens Financial Consultant to discuss strategies to manage market volatility.

Disclosures
  1. The information in the accompanying report has been prepared solely for informative purposes and is not a solicitation, or an offer, to buy, sell or hold any security or a recommendation of the services supplied by any money management organization. It does not purport to be a complete description of the securities, markets or developments referred to in the report. We believe the sources to be reliable, however, the accuracy and completeness of the information is not guaranteed. We, or our officers and directors, may from time to time have a long or short position in the securities mentioned and may sell or buy such securities. Data displayed on this site or printed in such reports may be provided by third party providers. Pie Chart slices labeled as “Other” may include securities classified as other by a third-party provider of asset classification data, as well as securities that did not fit in the other slices displayed. The indexes and models referenced in the charts presented are unmanaged and do not reflect any transaction costs or management fees. They were chosen to give you a basis of comparison for market segment performance. Actual investment alternatives may invest in some instruments not eligible for inclusion in such an index or model and may be prohibited from investing in some instruments included in such an index or model. You cannot invest directly in an index. The investment return and principal value of an investment will fluctuate so that the value of an investment, when sold or redeemed, may be more or less than the original cost. All information on S&P Dow Jones Indices, LLC is Copyright © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. © 2022 Stephens Inc.