Here’s today’s dirty little secret that no one wants to talk about: your investment portfolio is likely underperforming the market this year. Worse, you are probably lagging behind school-aged day traders on the new Robinhood trading app.
Apple reported their quarterly earnings last week, and as part of the announcement, they declared a 4-for-1 stock split to be effective August 31st of this year. What does this mean for investors?
In today’s ultra-low interest rate environment, it’s tempting for investors to take additional risk to generate the income they need from their portfolios. While that may seem like a rational response to today’s economic realities, there are too many pitfalls with this approach, and focusing on…
The second quarter was marked by a global pandemic, a largely paralyzed global economy, racial tensions that boiled over into violence, heightened political discord, record jobless claims with 40 million people unemployed, continuing business failures, geopolitical tensions with Hong Kong largely being subsumed by China, locusts in India and Pakistan that could result in famine, and even murder hornets in the pacific northwest. So, of course, the stock market rose, posting its best quarterly performance in over 20 years.
Making and saving money is hard. Perhaps that is why human beings are wired to look for bargains. We’re constantly looking for sales, coupons, rebates, and discounts. It feels better to know you didn’t overpay for something.
When the CARES Act was signed into law on March 27th it suspended Required Minimum Distributions (RMDs) from Individual Retirement Accounts (IRAs) for 2020. It also allowed account holders to redeposit any prior distributions up to 60 days from the date of withdrawal. This was good news for many, as it potentially meant a lower tax bill for 2020 since there could be less reportable income.
Investment performance needs to be put into context to be truly meaningful. For example, assume you earned a 10% return over some period. Is that good? It seems so at first, but what if all your neighbors got returns of 11%? Or, what if the overall stock market was up 15%? The same return can look different under different assumptions.
Our newest team member is Kim O’Brien. Kim will be helping with reception, account maintenance, cashiering requests, and other service-related duties.
’ve seen a lot of craziness. Just five stocks now account for over 20% of the entire market value of the S&P 500. There’s irrational trading in stocks of bankrupt companies. There’s a lot of highly speculative trading going on by uninformed investors. Interestingly, these are all hallmarks of the 1990s as well when…
The golden age of fixed income is over. That means we have to rethink portfolio management and risk control. The days when investors could rely on traditional bonds as safe, income-producing securities that hedge equity risk and deliver returns that keep pace with inflation are …