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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.

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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The Monkey, the Volcano, and the Dangers of Rationalizing Risk

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Half way up the slope of a volcano lived a monkey. Like his fellow monkeys, he spent the majority of his days picking and eating fruit off the trees growing on the side of the volcano. Unbeknownst to his friends, however, he dreamed of one day opening his own banana pie stand where he could spend his old age providing delight to others, just making and serving pie, passing the time in enjoyable conversation. And picking lice, of course. He dreamed this every day as he foraged, and it made him happy. But he knew he would only get there…

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How Should I Know If My Diversified Portfolio Returns Are Good Enough?

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It’s not easy for a diversified investor to know what their investments should be returning over most time frames. Just because the S&P 500 is up 15% this year, should you be too?  The S&P 500 plus dividends was up 40% over the past twelve months, but since you have a diversified portfolio, what is a normal return for you over the same period?  For any short-term period, like a year, how do we know if we’re still on track, or if our returns show something has gone wrong? Given the amount of media coverage large cap US stocks receive…

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Pick Your Poison

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We typically operate day to day within the guardrails of precedent, making decisions and evaluating outcomes based on what we’ve observed and those things that have played out in the past. Certain rhythms repeat for certain reasons which is why more times than not, this modus operandi not only makes sense, but is wise. There’s a reason we should respect and learn from our elders. There’s also a reason why as we age, we tend to become a little jaded about certain things – we often see the same mistakes being made over and over again. The boom/bust cycle is…

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