Investing

Education Planning

Education Planning Most parents want to save money for their children’s future whether it be for college, a wedding, or a first-time home purchase. Many options exist with different pluses and minuses. A variety of education savings accounts and tax credits are available to assist parents in saving for and paying for their children’s education …

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Uncategorized

Inflation Expectations versus Reality

Higher inflation expectations have been ramping up for months and are fully mainstream now. You can read about higher inflation everywhere these days, whether it’s higher commodity prices, higher housing prices or comments from companies about raising goods prices because input costs have risen. Additionally, many argue fiscal stimulus in the form of money delivered …

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Investing

Pricing in Reality

We’ve previously highlighted the reversal in 2020’s outperformance by a group of stocks classified as Stay at Home stocks relative to a group of Reopening stocks. Energy, Financials, Materials, Industrials and even Real Estate stocks have turned in strong year-to-date performances while Technology, last year’s winner, is among the laggards. Reversionary moves in sectors are …

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Finance Investing

Rainy Day

How much do you need to have in reserve for unexpected events? The popular financial gurus have their opinions which can range anywhere from three to eight months of living expenses in savings. Being prepared is the name of the game. Whether you’re laid off, become ill, have major unexpected car repairs or significant child …

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Investing

Vol Mo

Volatility is a measure of the dispersion of returns of an individual stock or market index. Higher volatility tends to be associated with riskier securities and/or environments. Academic studies have shown that prices and volatility tend to be negatively correlated. In other words, when volatility is rising prices are falling. It’s not quite that simple …

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Investing

Rate Rapids

Interest rate volatility has become very topical recently. While rising rates can be detrimental to asset valuations, it’s the rapid rise in rates that has the most harmful impact, especially on long duration assets. For example, 20 and 30 year bonds have experienced the greatest losses in the bond market in the wake of the recent …

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Investing

Wilting Growth?

Growth stocks have noticeably underperformed over the past few weeks as interest rate increases have accelerated. While painful to experience for growth investors, the drop shouldn’t come as a surprise after growth stock’s meteoric rise in 2020. The chart below is the ratio of the iShares Russell 1000 growth ETF (ticker: IWF) versus the iShares …

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