Investments
20 Second Advisor: Investor vs Speculator?
I’m a firm believer that investments should have expected future cash flow. True investors should “expect” to be compensated for delaying gratification and taking risk (ie uncertainty). If an “investment” doesn’t have future expected cash flow, it is not an investment. Rather, it is a speculative guess. These speculative guesses are based purely on the…
Read More20 Second Advisor: Should I stay in bonds?
You may be asking: Why have my fixed income funds lost money? The short answer: The Effective Federal Funds rate has increased year to date; buyers and sellers have incorporated that information, as well as their expectations about future changes in interest rates, into prices. Just remember that when the yield of a bond increases,…
Read More20 Second Advisor: Are negative years normal?
This past quarter has been a tough time to be in an investor. In the first quarter of 2022, all major asset classes had negative returns. See here for a recap of Q1 2022 returns. However, during the last 13 years (2009-2021), US stock returns have been pretty good – the S&P 500 had positive…
Read More20 Second Advisor: Fed Rate Hike- What it means for you
Inflation is at a 40-year high. Just last week, the Fed raised its benchmark rate .25%. In theory, the rate hike increases a number of borrowing costs, which slows demand for goods and taps the brakes on inflation. The Fed has indicated that further rate hikes are in store. If we continue to see further…
Read More20 Second Advisor: Then & Now – Returns During WWII
The events in Ukraine over the last few weeks have left many of us speechless. We haven’t seen a land invasion of this kind in Europe since WWII. Many clients and investors are grappling with how to handle their investments given the conflict; many worry of the effects if the conflict broadens. Here are some…
Read More20 Second Advisor: How much exposure to Russia do you own?
As an investor, you may be wondering how much exposure to Russia do you own. We do have exposure to an emerging markets fund, specifically DFA Emerging Markets Core Equity Portfolio (DFCEX). Here are a couple bullet points related to this fund: As of 1/31/22, DFCEX held Russia at a weight of 0.92% while the…
Read More20 Second Advisor: Are we about to crash?
Are we in a stock and real estate bubble? Maybe. There is a case to be made that we are, and the rough start to the year has people on edge. Does anyone know when or if the bubble will burst? No Does anyone know how long a potential downturn could last? No Does anyone…
Read More20 Second Advisor: Facebook & Value/Growth Valuations
Facebook’s stock declined by more than 20% in trading on Thursday this week. A stock’s price can seem random at times, but (hopefully) it aligns with the underlying financials over time. Unfortunately, a lot of investors don’t actually understand what they’re buying when they purchase stock. By this I mean a lot of people buy…
Read More20 Second Advisor: Dog Grooming and Market Efficiency
Just last week, I decided to get my dog groomed. Dog grooming is new to me….something that I am not familiar with. My first task was to do a google search, call several groomers in town, comparison shop, and then decide which one to go to. Side note: one of the groomers is super convenient…
Read More20 Second Advisor: Should you buy Rivian?
Electric vehicle start-up Rivian (RIVN) went public in November and became one of the most hyped IPOs that I can remember. The company is currently valued at more than $90 billion. Many investors are thinking it will become the next Tesla. While it’s exciting to watch high flying stocks like Rivian, investors should proceed with…
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