Late last week, the federal government passed an 883-page, $2.2T bill dubbed the CARES Act (Coronavirus Aid, Relief and Economic Security). Included in this big money is a $500 billion lending program for businesses, states, and municipalities. It also includes $377 billion to support small businesses, $32 billion in grants for the airline industry and […]
The Impact of the Coronavirus on the Stock Market and Your Financial Portfolio
As the coronavirus continues its trek around the world, speculation about the virus’s impact on the global stock market has been equally rampant. Those asking whether they should get more conservative with their financial investments or pull out of the market altogether are not wrong to assume that the coronavirus will impact the stock market. […]
The Recession is Coming! The Recession is Coming!
How to Recession-Proof Your Stocks (and Financial Plan) No doubt you’ve been hearing it a lot lately: “A recession is coming!” How do we know? Online search volume for the word “recession” is exploding, increasing by over 5x between July and August this year. Searches for “recession-proof stocks” quadrupled during this same time period. Clearly, […]
Stock Market Performance: A Case for Diversified Portfolios
If you have been paying attention, you know how much we believe in equity markets. Our clients who have a long enough time horizon and the risk tolerance to endure bear markets are invested, at least to some degree, in massively diversified portfolios of stocks. A reason we recommend portfolio diversification is because most individual […]
Circle the Wagons
Shoring up our financial defenses before we can’t remember where we put da fences I am a pretty laid-back person, but one thing that makes me go from zero to ‘losing it’ in short order is when somebody attacks Grandma (or Grandpa.) Not just my grandma, but any grandma. In this case, I’m not speaking […]
Let the Dogs Bark
The term “expected return” is in wide use among financial planners. To the layman it carries misleading connotations: most assume that it carries with it a high degree of confidence. After all, we are “expecting” a certain rate of return, aren’t we? Actually…no. Let’s explain: The expected return is a measure of the center of […]
How Long-Term Investment Strategies can Mitigate your Ticker Risk
What is ticker risk? Don’t bother searching the internet as this is simply a term we occasionally use to describe the inherent risks that come with giving too much credence to the current price and daily changes of the S&P 500, Dow 30, and Nasdaq Composite Index. These three, main “tickers” represent the vast majority […]
Why a second home merits a second thought
Picture this: you take a trip somewhere great and have an absolutely wonderful experience. You love everything about this place: the area, the climate, the people and just the overall ‘feel’ of being there. Then the inevitable question presents itself- wouldn’t it be great to have a little place here that we could retreat to […]
Irrational Expectations (and 3 things you can do to guard against them)
Expectations are powerful things. They involuntarily override our logic and amplify our emotional response to events based on how those events measure up to our expectations. When it comes to making decisions about our finances, emotions make poor bedfellows. In the stock market, expectations are everything. A company can have a great earnings report, but […]
The Risk Illusion
As emotional beings, we are susceptible to illusions and phobias. Never mind that the snake under the bed turned out to be a sock, or that the monster in the closet was a hat and overcoat. At times our irrational fears seem so real that no amount of reason can calm us. At the same […]