September 25, 2019
Are we going to have a recession or not?
Inverted yield curves?
Valuation matters!
There are different ways to find value in businesses
Be careful with how you understand diversity
Diversification; knowing what you own and why you own it
No one position should make or break a portfolio
Mark Breaks down an Investopedia article
DO NOT invest money on an investment because it has a nice yield
Maintaining a well diversified portfolio of 25-30 stocks yields the most cost effective level of risk reduction
This allows further asset allocation benefits!
Volatility will always create the opportunity to buy businesses on sale!
September 24, 2019
September 19, 2019
September 17, 2019
Topic: value
what value does your advisor provide?
Helping with expectations
retirement
family goals
Investing is not one size fits all
Flexibility is incredibly important
Advisors sharing stories of instances that they provided value
It’s not just about hoe much youre making, its also how much an advisor is helping you save
September 12, 2019
Value stocks vs growth stocks
Going to have differing returns
Can enhance returns and reduce volatility
Modern portfolio theory
asset allocation of small, mid and large cap
Growth examples
Netflix
Amazon
Microsoft
Facebook
Mastercard
Understand the value of what you're buying!
Growth stocks become grossly overpopulated
Time in a stock not timing a stock
volatility creates the opportunity
Don’t get worried about corrections if you’ve done your asset allocation correctly
Reversion to the mean
The fundamentals of a business matter
September 11, 2019
September 10, 2019
September 5, 2019
Is there a bubble in passive investing
the big short movie example
Beware of people talking about low cost, index investing, benchmarking to indexes, etc
Most people have no idea how the index returns are calculated
In index funds there is investing going on
How can you have a bubble?
1999
the nasdaq took over as the index for favorites who wanted to own technology businesses
market cap weighted like the S&P
a bubble bursts because there is only so much money that can flow into stocks
The trade war and trade dispute; economies not getting along
A bubble could bust; looking at the index itself
Talking about the investment stress test as a tool for those invested in indexes
September 3, 2019
August 27, 2019
August 22, 2019
August 20, 2019
Difference between having a will and having a trust
A will is not legally binding
effectively is a letter to the probate judge
it WILL go to probate
you direct assets and pick someone who will handle the affairs
Healthcare directive is incredibly important
living will
organ donor
Probate: the judge needs to review where your assets are going to go
Setting restrictions for your children?
Important to have a trust as well as a will
August 15, 2019
August 14, 2019
Time in an investment, not timing an investment!
Volatility creates opportunity!
Investors view their investment time horizon in comparison to when they are going to retire
Your money still needs to be invested so you can keep pace or exceed inflation
Do not take your money out of investments when you retire!
Volatility is not RISKY; its the allocation that is risky
During volatility is when there is more uncertainty and perceived risk
We are NOT on the verge of a recession
There are 5 indicators for an recession
NEVER is going to determine we are in a recession
Investment philosophy and strategy
Buy discipline and sell discipline
Question: I get the idea of volatility giving you opportunity to buy companies on sale: where do you come up with the money to buy them at that point? Either you had to have money in cash in which case it ant working for you or you’re forced to sell something else that is suppose to be invested in a good business, which seems like market timing
Most people who are invested in Mutual Funds and ETFs don’t have the flexibility because their money is all invested
In a well diversified SMA, there are assigned percentages of what you want to own in any given business
Taking profits where there are greats gains
Sell a position to invest in another position
Selling a position at a loss in tax loss harvesting
Sell the high to buy the low
You put cash to work over time
Its not market timing because were looking at the businesses we want to own on sale
Can take partial profit and don’t need to have a lot of cash
We’re not looking at the “market”, most people if you’re a growth portfolio do not have cash thats why asset allocation is incredible important
August 13, 2019
Advisor Thursday topic: Long term care
Does long term care include hospice?
Even the wealthy can utilize long term care
Assisted living vs nursing home care
different facility
transition care, independent living or some sort of assistance
There are different levels of care
the cost of this type of care is growing exponentially
Is there a surrender period for these type of policies and get your full money back
Asset protection becomes increasingly important when it comes to paying for your long term care
August 8, 2019
What goes up must come down, nothing goes in a straight-line
Going through predictions that have come true during 2019 so far
Discussing predictions from the AAII
when will the next recession hit?
3 things investors need during times of volatility
buy discipline
sell discipline (with an asset allocation strategy)
investment philosophy and strategy
When you ask yourself are my investments doing the best they can; it is not in comparison to returns
Discussion of a conversation with a question from a client about selling their stock
Corrections are normal and corrections happen!!
Secular bull markets and cyclical bull market
secular = long term
cyclical = short term
Volatility is not bad, it is GOOD!
August 7, 2019
Chinese economy will continue to grow regardless of a pullback
Asset allocation is incredibly crucial for your volatility threshold
What kind of decisions can i make during this period of volatility that will allow me the most opportunity
Strategic cost averaging is a tool to use
Well diversified and asset allocated portfolio
Ultimate clarity gives the investor an opportunity to know what is happening at all times
Strategic cost averaging: the ability to strategically invest unequal dollar amounts into a business when you see an opportunity arise
examples of companies purchased using strategic cost averaging
Investing is about process
Recessions create buying opportunities
You make the most money in bear markets; you just don’t realize it at the time
August 6, 2019
Lowered interest rates
refinance?
might see more cuts, who knows!
Recessions come and go; but its what you do doing the recession that makes a difference
Should I pay off my mortgage? Should I have a mortgage?
if you refinance a mortgage and you pay the closing costs that is money out of your pocket
now you can bill the closing cost into your mortgage rate
utilization is incredibly important
Bonds are more volatile than stocks
July 31, 2019
Advisor Thursday
Sharing stories about clients mistakes
helping investors learn from other investors mistakes
tax penalties
Time value of money in terms of planning and what affect tax has on it long term
Process before progress!
July 25, 2019