August 15, 2022

A rapid rise in inflation roiled the stock and bond markets this year, resulting in the worst first half ever for U.S. corporate investment grade bonds. As we’ve previously noted, that’s atypical, as bonds often increase in value when the equities markets drop. As bonds play such a critical role in client portfolios, the next two articles, utilizing analysis by Vanguard^1,2, help to put recent volatility into a long-term perspective.

May 15, 2022

To long-time clients, let me start by saying: “Here we go again.” To newer clients, I’ll say: “Don’t worry; this is normal.” And to everyone else: “Buckle up for the ride.” I am referring, of course, to the latest, and current, stock market correction.

May 15, 2022

Inflation has been lifting prices lately, and with that comes a barrage of news articles, TV talk show segments, and social media posts about how best to beat inflation in your portfolio.  One of the hottest tools on the market currently is Series I bonds.  They're "hot" since they currently have a published rate of 9.62%.  With a rate like that, who wouldn't want to invest?

May 15, 2022

The chart below from Dimensional Funds¹ depicts in graphic form how much the S&P 500 Index has gained (or lost) in every year since 1926. While the average annual return is approximately 10%, “it’s important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between.”

February 15, 2022

If you’re of a certain age, you may recall the classic TV show, The Odd Couple. The show focused on two friends who became roommates, played by Tony Randall (Felix Unger) and Jack Klugman (Oscar Madison). In one especially memorable episode, Felix used a blackboard in court to disassemble the word assume: “When one assumes, you make an ass of ‘u’ and ‘me’.”

February 15, 2022

During bull markets, it may appear as if anything an investor buys will go higher. For individual investors, up is up, and they may even be more emboldened when hearing of others who have made a lot of money. It’s hard not to want in on the party. (How hard can it be? Even so-and-so is getting rich.) Unfortunately, there’s a lot that can go wrong when discipline is lost. 

December 31, 2021

Writing in the NY Times Business section¹, Jeanna Smialek provided a brief yet thorough treatise as to what causes inflation and how it might affect us over the near term. Considering that articles about inflation have been widespread of late, it might be useful to understand how it might impact both your purchasing power and portfolio.

November 15, 2021

When market conditions change, investors often feel compelled to do something. To that end, we can agree on one point: it’s challenging to stand by and watch events transpire. The typical working assumption is: Something I own must be sold; something I don’t own must be bought, because, well, things are going to change. But what if doing nothing is the best thing you can do?

November 15, 2021

Over the years, various terms have been applied to explain ways to invest ‘more responsibly.’ Terms such as SRI (Socially Responsible Investing) and ESG (Environmental, Social, and Governance Measures) were early to the market. Now, almost any combination of the words Sustainability, Green, Ethical and/or Eco will attract investment dollars.

September 30, 2021

When the Dow Jones Industrial Average was at more pedestrian numbers, like 6,000, 8,000, or even 10,000, market drops of 600, 700, and 800 points caused quite a stir. That reaction was logical, as a drop of 600 points when the Dow was at the 10,000 level meant a loss of 6%. A drop of 600 points when the Dow is at 30,000, however, represents a loss of 2%. Yes, it’s still a loss, but a drop of that size in today’s stock market means a substantially smaller loss to a diversified portfolio.