Category: Weekly Investment Update

We expand step #5 this week with some brief comments on risk. Establish financial objectives and determine the time frame associated with each one. Determine the amount of savings which will be necessary to fund the investment accounts sufficiently. Determine the types of investment accounts available to best take advantage of provisions in the tax […]

We will finish the series on the value of a fiduciary in the coming weeks but we will pause to comment on the market activity. The stock market has been up in four of the last five weeks. On Friday, the S&P 500 closed at 2,779.66, up 7.7% from the correction low close of 2,581.00 […]

Step #4 begins the process of portfolio allocation. Without going into great detail, the following is a simple overview of the three major asset classes. A review of the historical returns from each asset class along with the corresponding historical business cycles, debt cycles and inflation levels are useful to attempt realistic assumptions of future […]

After establishing and prioritizing the importance of well-defined goals, we will turn our attention to creating a personal financial statement and budgeting for attainment of current and future objectives. The next stage is an assessment of the types of savings and investment plans or accounts available. A primary difference among the account types available is […]

The series continues this week with a dive into the details. After establishing the broad outline of goals in step #1 of last week’s update, it is time to begin adding the detail. Priorities ranging from required to desired must be assigned to each goal. Each goal will land somewhere on this spectrum and its […]

Last week, we wrote about the Fiduciary Rule and the need for improved regulation. In our view, increased transparency would solve much of the confusion. Consumers should have the freedom to choose the type of service which best meets their needs. This freedom, however, requires consumers be fully informed about the issues involved in organizing […]

We believe competition in the financial services industry is good. Investors are best served when they can choose among a variety of service providers including both fiduciaries and non-fiduciaries. Freedom to choose only works when clients have a clear understanding of the business model of the firm and the nature of the relationship he or […]

The earnings per share growth rate for companies reporting to date has been 27.3%, lifting the blended growth estimate for all S&P 500 companies to 25% from the original estimate of 18%. In response, the financial news headline generators are cranking out a parade of potential threats which might be holding stocks back or worse, […]

The estimate for corporate earnings growth for the first quarter of this year now stands at 21%, up from 18% at the beginning of April. Although slightly lower for the week, stock prices in the month of April have responded positively. As of Friday, April month-to-date increases in the indices have been 1.1% for the […]

Stocks were lower in the final two days of trading but still managed a small gain for the week, buoyed by the positive start to earnings season. Reports, while positive, have so far been in line with the positive expectations investors had built up going into the season. Market activity will again be influenced by […]