Volatility? What Volatility?

On Monday, October 4th US stocks finished the day down by more than one percent. The market was officially off its highs by more than any other point in 2021. Headlines in the financial press used terms like “battered” and investor hand wringing began. How far down from the all-time high do you think the … Read more

3rd QUARTER 2021 INVESTMENT COMMENTARY

Business activity gained momentum throughout the year led by industrial production, housing, and healthy consumer spending. This strong growth, as you are keenly aware, has put strains on the economy leading to a range of issues from labor shortages and supply chain bottlenecks to rising oil/fuel prices. As a result, it seems like the price … Read more

STOCKS FOR THE LONG RUN

Interesting facts about the S&P 500 Index that we thought you should know: The S&P 500 has closed at new all-time highs 54 times this year (as of 9/9). The long-term rate of return for the index is slightly higher than +10% per year. The index is +21% this year (as of 9/9) and if … Read more

PEAKING SUPPLY CHAIN BOTTLENECK

Now that we are past the half way point of 2021, we can investigate the potential impact of lingering supply shortages on profits and growth expectations. The number of businesses reporting negative impacts due to shortages peaked in May. While supply chain issues definitely remain, bottlenecks are easing and supplier delivery times are improving, as … Read more

THE FED IS BACK TO TAPERING

Over the course of the next several months the term “tapering” will be commonly used throughout the media. Some people will say it’s a good thing and others will be fearful of it. Most people will likely not fully understand what it is and what it means. Tapering is a term used to describe the … Read more

CAPITAL GAINS GREATER THAN CHINA?

The Biden Administration has proposed increasing the top rate on long-term capital gains from 23.8% to 43.4%. Here’s an interesting fact: the top capital gains tax rate in China is 20%. Chinese citizens are allowed, even encouraged, to buy and own stocks in Chinese companies. They can invest and become wealthy, as long as they don’t challenge the … Read more

MORE TO CHARITY AND LESS TO UNCLE SAM

We know that many clients and friends in our communities are charitably inclined. We have frequently written and spoken about the benefits of using a Donor Advised Fund or gifting a required annual IRA distribution and have assisted many of our clients with such gifts over the past several years. An additional strategy, one that applies primarily … Read more

INFLATING INFLATION

Inflation has shot to the top of investors’ list of concerns after an April Consumer Price Index (CPI) report was much higher-than-expected. We aren’t particularly surprised. This has been an ongoing drumbeat dating back to the global financial crisis in 2008-09. Here are a few things to keep in mind. Base Effects – Any measure … Read more

1ST QUARTER 2021 INVESTMENT COMMENTARY

While writing our quarterly review this time last year, the stock market was beginning a recovery following a ferocious decline from the month before.  Going back and reading our April 2020 letter, there are two things that particularly stand out.  Number 1 – The pandemic turned out to be much worse than expected with more … Read more

IS COLLEGE INFLATION SLOWING?

For many families, helping to fund college expenses is a major financial goal. According to reports from The College Board, tuition expense is continuing to rise but at a slower pace than in the past. This is good news for prospective college students and their parents. Over the last decade, in-state public 4-year tuition increased 16% (adjusted … Read more