Q1 2023 Quarterly Letter

April 2023

The Ratio Wealth Group Team welcomes a change of seasons and hopes spring brings
each of you a resurgence of growth at every level. Budding changes that come in April
are evident here at Ratio as well. Please take a moment to view our updated website at:
RatioWealthGroup.com. In the spirit of progress, we have added some very talented
individuals to our crew. Ratio is committed to meeting your needs at every planning and
investment turn.

While only in his first week on the job as our new Chief Operating Officer, please welcome
Josh Freedman, CFA ®. Ratio recognizes the importance of best-in-class systems and
redundancy to protect the institutional quality experience you have come to expect. Josh
strengthens our group multidimensionally as he has ample COO credentials with several
investment firms and has institutional research/portfolio management experience. Josh
and I worked together earlier in our careers and we are thrilled he is part of our future.

Nancy Kimball comes back to us after some time away managing her own business, family
affairs and the logistics that come with having a teenaged son. She really is the nucleus
of our organization and is available to coordinate any needs you may have of our team
members.

For updated bios and work history for all our employees, please visit the Team link on the
website. I look forward to each of you getting to connect with the newest members of
the Ratio family.

April 2023 Commentary

In January, I wrote about the 2022 market chaos that occurred across all asset classes.
We believe that a reset in the equity market began last fall based on the drastic multiple
contraction that occurred. We are still waiting to see where future earnings estimates
shake out. This will determine the forward valuations investors are willing to pay for
stocks. While it’s been a bumpy ride, equity markets are up low-double digits and the
bond market is up mid-single digits since the middle of October 2022. Clarity around the
outlook for investable assets should arrive towards the middle of the year, with an eye to
growth in 2024. A combination of bottom-up fundamentals for corporations and macro
constraints based on policy shifts will determine the next directional trend.

The work done by the Fed to battle inflation is almost done, with an unforeseen assist
from the Silicon Valley Bank repercussions. A pause to rate increases should be pulled
forward as banks rein in lending to stabilize their internal financial conditions. We do see
inflation abating in the back half of the year, but this will create further economic anxiety
as unemployment will likely rise (off historically low levels). The increase in
unemployment, coupled with general slowing dynamics for the economy, should create
later-cycle opportunities in the markets.

Market confidence is always the creator of chaos and near impossible to model. Based on
this premise, and a greater sensitivity to not “overpaying” for stocks, portfolio positioning
has not drastically changed. Our bias remains to favor value-centric allocations with
balance sheet strength being an important factor. A result of this bias is a tilt towards larger, global corporations that tend to pay dividends to shareholders. We have stated
before that future leadership for equities may not look like what boomed in a low interest
rate landscape. While growth equites, particularly technology have rebounded in 2023,
equites with value characteristics are still outperforming over the last twelve months. We
remain cautious to chase growth until confidence in the direction of profits becomes
clearer.

In late February, most of you also saw a modest increase to fixed income allocations. We
alluded to this adjustment in our January note. With rates recovering, slight adjustments
to increase bond allocations were warranted. High credit quality and shorter duration
holdings remain the target.

We look forward to coordinating a time to review your portfolio and any planning topics of
importance.

With gratitude,

Derek

Disclosure

Ratio Wealth Group, LLC (RWG) is a registered investment advisor located in Colorado. RWG and its representatives are in compliance with the current filing requirements imposed upon registered investment advisors by those jurisdictions in which RWG maintains clients. RWG may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. RWG’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 RWG’s web site on the Internet should not be construed by any consumer and/or prospective client as RWG’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 RWG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of RWG, please contact the SEC, FINRA or the state securities regulators for those states in which RWG maintains a filing. A copy of RWG’s current written disclosure statement discussing RWG’s business operations, service, and fees is available from RWG upon written request. RWG 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 RWG’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by RWG) made reference to directly or indirectly by RWG in its web site, or indirectly by a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client’s investment portfolio. Historical performance results for investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges, the deductions of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. Certain portions of RWG’s web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, RWG’s (and those of other investment and non-investment professionals) positions and/or recommendations 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 recommendations(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 RWG, or form any other investment professional. RWG is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

To the extent that any client or prospective client utilizes any economic calculator or similar device contained within or linked to RWG’s 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 RWG, or from any other investment professional.

Shawn Wallace, CLTC
Managing Director

720.420.4866 Direct
shawn@RatioWealthGroup.com

“The first time I meet with prospective clients I love getting to know them, exchanging life stories and learning about their goals and dreams. The best moment is when they realize that we’re a great fit and that we are the advisors they have been looking for. I like to think my people skills rival my financial skills! At Ratio, I’m proud that everything we do revolves around our client’s plan. Our goal is for them to trust us as their advisor and planning resource for decades to come.“

Shawn has been a dedicated planning agent for the over seven years, focusing on the comprehensive insurance and investment needs of affluent clients throughout the country. He offers expertise in optimization tactics during the accumulation phase, as well as tax efficient distribution strategies for clients. Shawn also brings a unique perspective and industry knowledge to the table as a United Airlines pilot and Boeing 787 instructor.

After graduating from Indiana State with a Bachelor’s of Science Degree in Aerospace, Shawn flew for the United States Air Force and is a proud veteran of Desert Storm.

Work : Life

Shawn lives in Denver with his wife and two sons and they all love to travel and are avid sports fans. Shawn is also an avid microbrew fan and will happily tell you his favorites. He is also a Board Member of the Wings Over the Rockies Air and Space Museum.

Nancy Kimball
Executive Assistant

720.420.4860 Direct
Nancy@ratiowealthgroup.com

“Helping people find happiness in the little things, moments or even daily miracles brings me joy! I thrive to make sure the Team at Ratio is prepared for all of their clients’ needs in and out of the office. Patience, appreciation, research and knowledge are key to my success at Ratio. I love helping our ratio Team thrive every day.”

Nancy brings a long career in advertising sales where she worked for Blair Television in various cities including New York. She came to Denver where she worked at the NBC News Affiliate, Channel 9. After leaving the Television Industry, Nancy changed career paths to a more administrative supportive role. She worked for mortgage and real estate CEOs and supported various other CEOs as a Consultant. Nancy is well versed in planning, communication and anticipating the needs of the Ratio Team and their clients. She received a Bachelor of Arts in Speech Communication and Broadcasting from Colorado State University. She is also a Certified Yoga Instructor.

Work : Life
Outside of Ratio, Nancy enjoys spending time with her husband and cheering her son on during his many sports, especially hockey. Her favorite hobbies are Pilates and playing the piano. She enjoys volunteering wherever she is needed at her son’s school, on her HOA Board in her neighborhood, and serving the homeless in the Denver community.

Becky Neils, CFP®
Senior Financial Planner

720.420.4862
becky@ratiowealthgroup.com

“You come first. Everything I do is meant to help you understand your overall financial picture and help you toward your goals. I want to get to know you and understand what is important to you. Our planning discussions will be all about how to make your individual plan work to get to your goals, whatever they may be. Listening is the key, but so is explaining complex financial concepts in a way that makes things understandable. “

Becky comes from a 24 year career at Charles Schwab as a branch partner, and for most of her tenure as Senior Wealth Advisor charged with portfolio management and all aspects of financial planning. Her passion is helping clients and their families with planning topics that include retirement, estate, college, charitable, long term care, debt management, cash flow, tax and any other topics that may come up in life.  Becky holds the CFP designation and is a member of the FPA of Colorado.  She holds a Masters degree from the University of Colorado.

Work : Life

Becky prioritizes spending time with her husband and daughter. They love hiking, biking and almost anything outdoors. She also loves photography and travel.

Lauren S. Young, CFP® Vice President, Client Advisor

720.420.4873 Direct
lauren@RatioWealthGroup.com

“I’m passionate about helping people determine their financial goals and then working with them to make sure they can achieve them. I enjoy helping our clients understand “financial language” so that they feel confident when making financial decisions. An important role I play is reminding clients of their goals and helping them stick with them. The difference between us and other financial advisors is our focus on getting to know our clients and connecting with them. That’s as important to us as performance results.”

Lauren has earned a Certified Financial Planner™ designation and has been working in Wealth Management industry for nearly 15 years. She has extensive experience in trust administration, estate planning, retirement planning, and education planning. She has a degree in Business Administration with concentrations in Marketing and Finance from Gonzaga University.

Lauren also created a Kids and Money workshop and is passionate about empowering teenagers with the knowledge and expertise to create their own financial futures.

Work : Life
Lauren is a sports fanatic and loves to ski, bike, go to the mountains, cheer on the Denver Broncos and Colorado Avalanche and spend time with her husband and two kids.

Josh Freedman, CFA
Chief Operating Officer

720.420.4863 Direct
josh@ratiowealthgroup.com

“After 30 years in the finance industry, I have seen many different investment strategies employed by multiple firms.  I am thrilled to be at Ratio Wealth Group because I believe that the firm’s holistic approach, our investment philosophy, and the services we provide are the best way to ensure our clients’ financial well-being and peace of mind.  It gives me great pleasure and satisfaction to work with such talented people – both coworkers and clients.”

Josh has worked in just about every aspect of the asset management business – from trading and securities research to compliance and operations. Before joining Ratio Wealth Group, Josh was Chief Operating Officer and Chief Compliance Officer for several independent investment advisors, most recently Ballast Equity Management, LLC. He has experience in investment research and portfolio management in both the equity and fixed income markets and began his career in client service and sales and marketing.

Josh holds a Bachelor of Business Administration degree from the University of San Diego and a Masters in Business Administration, with a specialization in Finance, from the University of Denver. Josh is a CFA charterholder and a member of the CFA Institute and CFA Society Colorado.

Work : Life
Josh and his wife enjoy traveling and being in the mountains to ski, ride and hike whenever they can. Josh is also a dedicated, if slow, swimmer and runner. His favorite pastime is annoying his grown sons with the worst dad jokes he can find.

Dominique Caraveo
Client Relations Manager

720.420.4867 Direct
dominique@RatioWealthGroup.com

“Money is an incredibly vulnerable subject. At Ratio, money can be discussed without fear of judgement or pressure all within a space that ensures trust and care. As a first-generation college graduate, I have learned what it’s like to not have been provided with the tools to make yourself financially successful until much later in life. At Ratio, financial advice is coupled with education to ensure that each of our clients has the tools and resources to write their own financial story.”

Dominique focuses on client relations management at Ratio Wealth Group. She has 5 years of client service experience helping clients navigate their financial planning needs. Dominique holds a B.A. in Liberal Arts and an M.S. in Marketing both from Regis University.

Work : Life
During her free time, Dominique enjoys playing tennis, pickle ball, cooking and spending time with her family.

Darren Spreeuw, PhD
Portfolio Manager

720.420.4879 Direct
darren@RatioWealthGroup.com

“I am an educator at heart. I love talking with clients about the economic theories that underlie financial markets, and helping to clarify their understanding about how things work. I’m also a musician, and a little known fact about me is that I pick up foreign languages easily – accents and all. I’m proud to work at Ratio because we are a true fiduciary, putting our clients first, while practicing and promoting best ethical practices with kindness, empathy, and respect.”

Darren has approached the capital markets from a myriad of angles over the last 22 years. At Ratio Wealth Group, he focuses on portfolio management, portfolio analytics, planning integration and client relations. He works closely with the entire Ratio team to insure complimentary investment strategies are thoughtfully integrated into tailored financial plans.

As an academic economist, Darren taught graduate level econometrics, finance and economic theory at several universities, and conducted firm-theory research in Eastern Europe as a Fulbright Scholar. In the private sector, Darren has provided thoughtful strategic analysis to a range of firms, from small family offices and RIAs, to big-data firms overseeing portfolios of mortgage-backed securities.

Darren is a Founding Executive Board Member of the Colorado Student Leader’s Institute, an affiliate of The National Conference of Governor Schools. He holds degrees from San Francisco State University (BA Econ) and The American University (PhD Econ).

Work : Life

Outside of the office, you’ll find Darren fixing anything that breaks at one of his many rental properties, cheering on his kids’ soccer teams, skiing, climbing, cycling, and playing beer-league hockey.

Beth Steininger Wraga
Managing Director

720.420.4865 Direct
beth@ratiowealthgroup.com

“I believe that taking a holistic approach to your financial well-being paves the way to a life abundant in success, happiness and meaning. I have a deep background working with financial institutions and a strong desire to serve others with empathy and integrity. This combination gives me an ideal foundation to aid individuals and families in planning and achieving their life goals.”

Beth brings twenty-five years of institutional financial services experience in sales, research, and operations to her role as Managing Director. Prior to Ratio Wealth Group, Beth worked as the Director of Investor Relations and Marketing for two different hedge fund advisors that were focused on the technology, media, and telecom sectors in the public and private markets. Previously, she worked for Goldman Sachs as a Vice President in Institutional Equity Research Sales and in the Global Investment Research Technology Group. She also worked at Paine Webber (now UBS) in Investment Research and started her career in its Management Audit and Controls analyst program. In addition, Beth is a Certified Life Coach – she uses this training and passion to help clients identify core motivations, values, and goals in their wealth management discussion. Beth received her Bachelor of Business Administration from the University of Texas at Austin.

Work : Life

Beth lives in San Francisco with her husband and three sons. She is passionate about travel, theater and cheering on her boys.

Graham C. Gerlach, CFP®, AEP®
Co-Founder, Owner, Partner

720.420.4871
Graham@RatioWealthGroup.com

Graham brings a varied and highly valuable combination of expertise to Ratio Wealth Group, advising on all aspect of our business. Graham is also a Co-Founder and Chief Revenue Officer of Inclined Technologies, a SaaS software company focused on driving better long-term outcomes for whole life policyholders.

Graham holds a (BA) from Denison University (Religion and Psychology) and is a member of the Denver Estate Planning Counsel.

Work : Life
Outside the office, you’ll find Graham enjoying American and European Football, cooking outside and fine tuning esoteric knock-knock jokes with his kids.

Derek J. Scarth
Co-Founder, Owner, Managing Partner

720.420.4872 Direct
derek@RatioWealthGroup.com

“I am incredibly grateful to assist families in developing a thoughtful strategy for their specific needs and imparting trusted advice. I truly subscribe to a life in service for others. At Ratio, we take a team approach to caring for our clients. I want individuals and families to know that we take tremendous pride in providing confidence and harmony around estate and financial objectives. We know that assets are only valuable as part of an prearranged mosaic and are truly dedicated to being a dependable resource at every turn.”

Derek’s professional experience began in public/private equity analysis and institutional portfolio management. He is well versed in business development and operational management for both for-profit and not-for profit entities. Prior to co-founding Ratio Wealth Group, Derek was a Portfolio Manager and Managing Director for Inspire Capital Partners. Previously, he was a Partner at Denver Investments LLC, where he served as Co-Portfolio Manager for Large-Cap Growth institutional clients and on the Westcore Large-Cap Growth Fund. In 2003, he assisted the investor relations team of Newmont Mining Corporation (NEM -NYSE) in a public offering capital raise. Derek began his investment career as an Analyst and Assistant Portfolio Manager for Berger Funds, which was acquired by Janus Capital Management in 2002.

Derek received his bachelor’s degree from Regis University and holds a master’s degree from the University of Denver – Daniels College of Business.

Work : Life

When he’s not actively engaged in the Ratio community, you will find Derek spending time in the Colorado mountains with his wife and their three sons. Derek is very proud to give back to his alma mater as the Regis University Board of Trustees Chair. He also is an assistant boys soccer coach and mentor at Regis Jesuit High School.

Disclaimer

No client or potential client should assume that any information presented should be construed as personalized financial planning or investment advice. Personalized financial planning and investment advice can only be rendered after engagement of the firm for services, execution of the required documentation, and receipt of our disclosure documents which we will provide upon request. For more regulatory information regarding Ratio Wealth Group please visit the SEC’s website at www.adviserinfo.sec.gov

Licensing

Investment advisory services offered through Ratio Wealth Group, a Registered Investment Adviser.

Graham Gerlach CA Insurance License #0C37975, State of Domicile, Colorado
Shawn Wallace CA Insurance License #0G59657, State of Domicile, Colorado

Ratio CRD: 6705290