Trees Don’t Grow to the Sky And Bear Markets Don’t Last Forever
“I’ve been here before, and I know how the story ends.”
From time to time, the markets can go stark-raving mad, as occurred on the upside in the 1990s. The same happens on the downside. We have seen the market take wild drops between 1929–1931 and 2008–2009. We recently went through a five-month bear market between February 19, 2020 and August 18, 2020 when the market recovered all of its losses to the break-even point.
Your primary defense against being swept up in the madness of such periods is a command of the history of the financial markets and the...
Dogs of the Dow
The Dogs of the Dow Theory is an old friend and can be a comfort in stressful times. Does it work? Usually. On 31 December 2019, Barron’s reported the Dogs had “…beat the Dow Jones Industrial Average by more than one percentage point a year on average through the decade…[and] …earned almost 15% a year on average, better than the 13.4% return of the Dow and the 13.5% of the S&P 500…” [1]
The theory of Dogs of the Dow is simple which probably accounts for its popularity. A useful point to remember is the Dow Jones publishes three indexes...
Single, Wealthy Individuals With Children Under The Age Of 18, The COVID-19 Pandemic And You
Death is not an issue anyone likes to discuss. But death, especially our own death, is in the thoughts of many as this pandemic continues and as the death toll continues to climb to truly frightening levels. I can assure you that for single parents, the worry over who will take care of their children is intense.
Do you have clients who are High-Net-Worth/Ultra-High-Net-Worth (HNW/UHNW), single, and have children under the age of 18? If so, you need to consult with them as soon as you can and ask these parents if they died, what plans have they set up...
Prospecting In a Pandemic: Five Steps for Growing Your Business Now
Is your practice growing or shrinking? Are you tracking the metrics which keep you informed of its growth or decline? Whether you are a partner in an RIA or an Advisor with a broker/dealer or an accountant or attorney specializing in wealth management, your practice is your own small business.
In this pandemic, small businesses have suffered more significant losses than larger companies. Is your small business hurting? A practice cannot achieve perfect equilibrium and remain static, neither growing nor shrinking. That’s impossible. It’s either growing or shrinking.
In this stressful and difficult time, you might think it unseemly...
Social Security Taxes Will Soon Go Up for Your High-Net-Worth/Ultra-High-Net-Worth Clients
Your High-Net-Worth/Ultra-High-Net-Worth (HNW/UHNW) clients will soon be paying increased taxes to support a social program that is the largest and most popular in the U.S. - Social Security. But first, let’s take a quick look at how the U.S. Government spends all taxes paid by your clients and most Americans. [1]
Federal Spending Is Divided Into Three Categories [2]
Mandatory spending Is 60% to 65% of the Federal Budget. This money is allocated outside of the regular appropriations process because the Federal laws which authorized the programs specified who would qualify to receive benefits. The largest mandatory spending program...