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We routinely publish news, information and insights to keep our clients informed while also deepening their understanding of a variety of wealth management topics.

What Lies Ahead in 2023

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This year was a year where effective defense made the difference. To come out of it with positive returns, as nice as that would be, simply wasn’t in the cards without a healthy dose of risk and even more luck. To lose much less than others, or more importantly, what popular asset classes lost, was a huge victory. The question now of course is where does this leave us as we head into 2023? To answer this question, it might be most helpful to think about it within the context of time. In weather, it’s pretty well established that forecasting…

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2022 Asset Class Returns: Year in Review

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Toward the end of last year’s “Year in Review” piece I wrote: “You may be in the camp of investors that sees a year like this year as an opportunity lost as opposed to a sign that we have entered dangerous stock market times.”  2021 was one of those years where the US stock market outperformed most other investment categories by enough that it may have been easy for investors to assume there was less risk in the market than there really was at the end of last year. Unfortunately, to many investors’ surprise, 2022 came along and proved that,…

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My Portfolio Has Lost Value—Now What?

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When your investments are going up, it’s easy to picture how you’ll react when they go down because you don’t really feel it.  Not at that moment.  In fact, you’re feeling pretty good, what with your investments going up and all.  It sure is different when the actual down period hits, though, isn’t it?  We are ten months into this current stock market downturn and a traditional diversified portfolio of half stocks and half bonds is down roughly -18%.  Our corresponding portfolios at Cadence are down a fair bit less than that, but more on that later.  Ten months into…

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Beachball or Brick?

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Anybody with an investment account, regardless of how it’s allocated, is probably well aware that markets are down significantly this year. That hasn’t always been the case, since in previous market downturns there were other asset classes that held up just fine while stocks declined. The first thing to remember is that although these situations aren’t the norm, they do happen. From time to time, everything moves in the same direction. We have no problem with it when that direction is up, but when it’s down, we certainly take notice. A strategy that normally protects well against volatile market periods…

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Managing Cashflow During Inflationary And Recessionary Times

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Nothing reminds you of what you should be doing but aren’t like a good dose of uncertainty.  Inflation and recessions both have the ability to add uncertainty to our lives in the form of higher prices for our necessities, temporary investment losses, and the potential for reduced income.  When you are used to having a certain level of income, be it from employment or investments, and a certain level of expenses, any changes in the wrong direction can be a good wakeup call that what you should be doing to overcome these challenges is probably what you should have been…

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It Pays to Know What’s Under the Target-Date Fund Hood

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Target-date funds have been growing in popularity over the years with their promise that the investments inside them would change over time to stay aligned with their aging investors’ needs for lower volatility and more downside protection as they approached retirement.  Three years ago we wrote a piece (see below) on how important it is for investors to really know just how much risk their target-date funds carry inside them, because we believed that most investors as they approached retirement would want more protection than target-date funds are structured to give.  Fast forward to this year and many target-date funds…

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Ask Cadence: “I suppose you’re getting a lot of calls right now. . .”

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That’s not technically a question, but there are any number of questions contained in that sentence: “Are other people worried right now?  Should I be worried right now?  Are you guys worried right now?. . .” When I hear this question from a client, I always take it to mean there is some amount of worry being experienced on the other end of the phone, but my client doesn’t know if he or she should be worrying. Rather than admit to that worry straight out, it feels safer to ask if other people are experiencing the worry.  So, when a client says, “I suppose you’re getting…

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Ask Cadence: Is the recent pullback in stocks almost over? Can I safely invest now?

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We don’t think so, and no, it isn’t safe to invest in markets now. Growth has been slowing in recent months and we anticipate the slowdown will accelerate. This was likely even before inflation hit 8.5% and key borrowing rates spiked across the board. Both of these things have and will probably continue to reduce consumption and overall economic activity. The slowdowns we’ve experienced over the last 12 years since the financial crisis didn’t face these same challenges. In addition, stocks remain historically stretched in terms of their price relative to more grounded metrics like sales, cash flows, and overall...
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The Netflix Eruption

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As we addressed in the Monkey and the Volcano parable, there eventually comes a time when extreme volcanic pressure releases itself all at once. Markets are no different. Extreme buying pressure over time inevitably leads to sudden eruptions that send prices falling; in many cases faster than they went up. In markets as with volcanos, energy and volatility doesn’t disappear, it simply transmutes into another form. If you’ve been paying attention to financial markets the last few weeks, you’ve probably picked up on the fact that this process seems to be playing out currently. Netflix has been a good example...
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