March 16, 2020 BARRON’S S9
AMERICA’S TOP 1200 FINANCIAL ADVISORS 2020
Judith McGee didn’t waitfor anxious clients to call her
when the stock market was dropping in late February on
coronavirus-related concerns. She reached out to remind
them that the success of a financial plan isn’t predicated
on the short-term performance of stock indexes.
McGee, CEO of McGee Wealth Management in Port-
land, Ore., acknowledges that things could get much
worse: The contagion could continue to spread for
months, causing stocks to reel and the economy to sink
into a recession. For now, she isn’t planning any signifi-
cant changes to client portfolios, which she had already
positioned to withstand stress in August.
“We didn’t anticipate a virus, but we were expecting
increased volatility in 2020,” says McGee, who manages
some $648 million for 800 households with average
wealth of $3 million.
Within stock portfolios, she layered in low-volatility
strategies that use options to cushion the downside.
“And we did a deep drill-down in fixed income, getting
rid of anything considered junk. We want to stick with
the highest-rated bonds of AA or higher,” McGee says.
As the latest crises plays out, McGee says she expects
that opportunities will begin to open up for savvy stock-
pickers. Sweet spots will be in online retail, pharmaceu-
ticals, and technology companies that don’t have great
exposure to supply chains.
“You might adjust your asset allocation if you want to
reduce the risk.” she says. “If you were at a 70% to 30%
mix of stocks to bonds, maybe you now want to be at
60% to 40%.”
McGee, a Portland native, 77, got her first job at an
advisory firm in 1975. “I can offer honest advice and
years and years of experience handling thousands of
financial-planning cases,” says McGee, whose longest
client relationship dates back to 1979.
Based on her pandemic analyses, McGee is telling
clients they could see a 20% to 25% decline in stocks. If
she’s right, she acknowledges that portfolio values will
decline despite the stabilizing measures she put in place,
and that it will be unsettling to clients.
She plans to stay in close touch with clients through
reports, emails, and calls. “They want to hear that you’re
not panicking,” McGee says.—K.H.
Photograph byCLAYTON COTTERELL$648M $1M $3M
Total Assets Typical Account Typical Net Worth
Portland, Ore. No. 1
JUDITH
McGEE
McGee Wealth Management/Raymond James