Category: markets
Putting Your Cash To Work
In response to 11 Fed interest rate increases since March 2022, savers should reconsider the wisdom of “parking” cash in a traditional bank savings account and explore investment options that carry relatively low risk in today’s higher interest environment. The rise in interest rates offers...
Managing Risk
Since the birth of our nation, risk has been a fundamental component of our free market system. As fiduciary advisors, helping our clients prudently manage risks is a key part of our responsibility. The process of evaluating and managing risk is not a simple task, however, and over time various...
The Impact of the S&P Tech Industry Concentration
The technology industry has gained significant stock market influence since the widespread use of the internet in the mid-to-late 1990s. Many investors recall the initial "dot-com bubble" of the late 1990s, the highly speculative exuberance that followed from investors chasing fads, and the...
Understanding the Laws That Protect Your Assets
The failure of First Republic Bankthis week marked the third major bank collapse in the past two months, following the demise of Silicon Valley Bankand Signature Bank in March. Combined, these three institutions had roughly $530 billion in assets and represented the largest bank failures since...
Understanding Stock Ownership, Earnings, and Dividends
Recently, a well-informed client asked me: "If I own 5% of a company's stock, does that mean I get 5% of the earnings?" It's an interesting question that got me thinking about company earnings, dividends, and valuation dynamics. The short answer is that owning 5% of a company's stock does not...
Inflation: Past, Present, and Future
Inflation has been a part of human society as long as goods and services have been exchanged for one another. In ancient Rome, emperors and senators actively tried to manage inflation by striking the ideal balance between money supply and growth. In the thirteenth century, King John of England...
2023 Market Commentary: Bear vs. Bull
Like most investors, we are glad to view 2022 out of our rearview mirror. Last year, U.S. equities had their first annual decline since 2018 and their worst return since 2008. Fixed income was just as dismal and had its poorest performance in the last 50 years. The S&P 500 and U.S. Aggregate bond...
Staying Focused on Your Financial Plan
In today’s volatile global economic environment, it’s more important than ever to stay focused on your financial plan. An updated financial plan will assist in guiding your actions to help you be proactive, rather than reactive, regarding changes to the economic landscape.
Market Commentary – A Fed in Transition
It has been a difficult start for the market in 2022 for both stocks and bonds. Certainly, a pause in performance wasn’t unexpected as the market has compounded at about 14% for the trailing three, five, and ten-year periods. We entered the year mindful of the risks of inflation on profit margins...
Staying Grounded During Turbulent Times
The first quarter of 2022 has been anything but calm. After robust returns across markets during 2021, volatility returned meaningfully. This year began with growth stocks continuing a steep decline that started late last year, followed by indications the Fed would reduce its balance sheet and...