Investments
20 Second Advisor: Long Term View of US Inflation
The inflation data for September 2021 was released last week. The news? Well, prices continue to rise. September’s observed price increase was 5.4% (from a year earlier). Debate continues as to whether inflation will be “transitory” or if it will be “here to stay” for awhile. You may wonder, “what is the historical relationship among…
Read More20 Second Advisor: The Boring Way to Building & Sustaining Wealth
I’m asked all the time about the latest investment trends: Should I invest in bitcoin? Real estate is really taking off, should I buy a rental? What about Tesla – are we all going to be driving electric cars in 20 years? At the heart of all these questions is that investors are often looking…
Read More20 Second Advisor: What is ESG?
ESG investing is gaining traction, and it’s no wonder. Research increasingly shows that this investing method can reduce portfolio risk, generate competitive investment returns, and help investors feel good about the stocks that they own. But first, what is it? In short, ESG investing is the consideration of Environmental, Social and Governance factors alongside financial factors…
Read More20 Second Advisor: How to hedge inflation?
It’s in the news: “Inflation is on the rise!” So what? We haven’t had high inflation in a long time. If we experience short-term inflation related to COVID supply chain issues, that’s not too bad. If we experience long-term inflation and price increases are “here to stay” for a while, then investors should make sure…
Read More20 Second Advisor: Should I invest globally?
With US stocks outperforming non-US stocks in recent years, some investors have again turned their attention towards the role that global diversification plays in their portfolios. While non-US equities have recently delivered disappointing results, it is important to remember that investing globally provides valuable diversification benefits. Have a look at the chart below. We see…
Read More20 Second Advisor: Is buying stock like buying airline tickets?
Today I was shopping for a plane ticket I need to buy for an upcoming trip. Since the trip is several months away and the dates are flexible, I was playing with the dates a bit to get the best price. Based on demand, some flights are more expensive than others. Do you need to…
Read More20 Second Advisor: How to think about Crypto
I’ll be the first to tell you that cryptocurrencies are exciting. While it is exciting to see its sharp rise in popularity, it is important to understand whether it has a role in a diversified portfolio. Putting aside squabbles over the future value of bitcoin or other cryptocurrencies, here are a few issues you should…
Read More20 Second Advisor: 4 Financial TIPS That Will Help Bring Peace
At our house, TIPS mean “Taylor’s Inappropriate Prideful Suggestions”. Here, I hope they mean something different… Taxes – People act like taxes are a surprise. They aren’t. Hire a good CPA. Make sure your withholding is set correctly. If self employed, save a % of every dollar you earn for taxes Investments – if you…
Read More20 Second Advisor: Should I invest in gold?
Investors often think of gold as a hedge against inflation. As Exhibit 1 shows, however, gold has been about 15 times more volatile than inflation. Over the period from January 1970 – December 2019, the annualized compound return for gold was 7.81% with a volatility of 19.24%. For comparison, the annual inflation rate has been 3.91% with…
Read More20 Second Advisor: The Costs of Inflation
Let’s be honest – most of us don’t really understand inflation. The dictionary defines inflation as: 1“a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.” In a nutshell, inflation is when prices go up. But why is that…
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