The first quarter was a great reaffirmation that diversification can be your friend. US Large company indexes lagged, but middle and small companies did better. US Bonds did well (in general), as did international stocks.
While diversification does not guarantee a positive return in a generally declining market, my experience is that it does tend to “buffer” some of the returns so you can stay with the plan that works for you.
In my video, I review the past quarter and continue my theme about what I’m watching to come to a “health” conclusion… Read More
The US Dollar is looking pretty mighty these days
This is just one outcome of a resurgent America in comparison to the European Monetary countries that are having all kinds of difficulty. While we ended our bond buying program, they’re just about to start.
This is good news for US travelers to Europe but bad news for… Read More
2014 is now over, and a new year is in front of us.
In my video (click on the image below), I briefly do a recap on 2014, and then lay out my arguments for a long term approach, diversification, and reasons why I think being fully invested is wise, particularly as I continue to be optimistic for the foreseeable future.
Click on the video below for 10 minutes of my thoughts.
Hi there! Mike Brady with Generosity Wealth Management: a comprehensive, full-service, wealth management firm headquartered right here in… Read More
I remember the 1998 Russian crisis well. It was near the end of the summer, and threatened to put a real damper on an otherwise excellent stock market year. The “Moscow meltdown” bled over the S&P 500, which plunged 20%.
There are reasons 1998 and today are different
I’ve mentioned all year long that I’m bullish and optimistic for the foreseeable future, and until data tells me something else, that’s where I remain.
However, what would change my opinion? What are the data that I look at, and how would they need to change in order for my opinion to change?
Good question, and one I address in this issue’s video:
Hi there, Mike Brady with Generosity Wealth Management, a comprehensive full-service wealth management firm headquartered right here in Boulder, Colorado.
The main topic for… Read More
There’s an old adage that “economists have predicted 17 of the last 3 recessions”.
History is an outline, a guide, but there’s a reason we disclaim “past performance is no guarantee of future results”. It should be modified to say “past history does not mean it will repeat itself here again”.
As volatility has increased in the past 3 weeks, I want to keep you well informed of my thoughts.
Are the past weeks normal, have the fundamentals changed, or is this the canary in the coal mine we’ve been waiting for?
These questions are answered in my video.
Hi, Mike Brady here with Generosity Wealth Management, a comprehensive, full service wealth management firm, headquartered right here in Boulder, Colorado.
I last spoke to you a couple of weeks ago and at that time, I talked about the third quarter… Read More
The magnitude of loss greater than 20% or 30% is actually quite unusual, but 10% happens often, even if it hasn’t happened since 2011.
When it happens it doesn’t feel very good, but it’s not necessarily a prelude to bigger declines, so we shouldn’t jump to that conclusion.
Here’s a full article with more discussion about the odds.
The deficit is the difference between tax receipts (inputs) and tax expenditures (outputs). The deficit has been declining over the past few years, but it’s not due to decreased expenditures, it’s due to increased revenues.
The private sector has been healing itself over the past 5 years, and it shows with the tax revenue.
The 3rd Quarter was schizophrenic, with most of the unmanaged US and international stock indexes negative, bonds (in general) slightly positive, and with tons of volatility across the board.
Particularly in the past few weeks, every day there seems to be triple digit swings in the Dow, and lots of negative news (ISIS, Ebola, etc.).
Now is the time when we have to remember the big picture and what we as investors are striving towards. It is the time when emotions can be high, but we need to keep a steady hand and focus. … Read More
Tensions with Russia, slowing global growth and falling consumer confidence mean the region’s biggest economy struggled to grow in the past 3 months, and may turn out to have shrunk for a 2nd quarter running.
Across the Eurozone as a whole, recently released data showed that economic sentiment dipped in September for a 4th month in a row.
Questions abound about whether this could lead into a vicious circle of falling prices and stagnation.
I’ll continue to watch this closely and make… Read More
The 2nd quarter is now behind us, and the momentum is with us! Will recent global political events derail the positive trend?
Good question, and one I answer in the below video
Hi there, Mike Brady with Generosity Wealth Management, a comprehensive, full service, wealth management firm headquarters right here in Boulder, Colorado. Today, I want to talk about the second quarter review. Really kind of the first half of the year review and then a third quarter preview which really turns into the rest… Read More
When you hear 9 – 10% in the stock market, you must remember that those returns contain every single type of market environment.
Warren Buffet is one of the most successful investors ever, and he still has declines at some point. But, he has the right behaviors ingrained in him to “be greedy when others are fearful, and fearful when others are greedy”.
No one likes declines, but they are part of a full market cycle. When constructing a
One thing to watch out for is assuming the future will reflect the past. As a matter of fact, that whole “past performance is no guarantee of future result” is actually true.
So, looking at history over the past 14 to 15 years, what would happen with your returns and volatility if you had invested for the year based on the best asset class for the prior year?
Inquiring minds want to know.
Therefore, you should watch my video.
Hi there, Mike Brady with Generosity Wealth Management… Read More
The first quarter is now behind us, but all the excitement happened in the first week of April!
After reaching new highs, the unmanaged stock market indexes pulled back a little bit, so the question we have to ask ourselves is “what does this mean for the rest of the year?”.
Good question, and one I answer in the below video:
Hi, this is Mike Brady with Generosity Wealth Management, a comprehensive full-service wealth management firm headquartered right here in Boulder, Colorado, and today I want to talk about… Read More
In my video today, I discuss the most recent January volatility in the stock markets.
Does the worst January in the Dow since 2009 mean we need to change our strategy?
Is there any change I recommend since my last video about 3 weeks ago?
For the answer to these questions, listen to my 4 minute video.
Twelve months ago, the 5 year return for the S&P would have covered 2008 – 2012, for a +1.66% annual return (including reinvested dividends). Today and one year later, because a bad year dropped off (2008) and is replaced by a good year (2013), the 5 year annualized return jumps up to +17.94%.
Let’s look at another longer term statistic. A year ago, the 20 year annualized S&P 500 return was +8.22% a year vs. +8.50% a year for long term Treasuries… Read More
2013 was a great year for stocks/equities in general, and pretty bad for bonds. If only we could rewind the year and go 100% in stocks.
But would that be wise? Sure, in hindsight and only since we know how it turns out. But investing doesn’t work that way. We work in the unknown, crafting a disciplined investment strategy that helps a person reach their goals.
I have a full 2013 recap and 2014 thoughts in my video, so I highly recommend you watch it.
Hi there, Mike Brady… Read More
In my video today, I discuss what I’m hoping people don’t take away from 2013.
Diversification? What that?
For a full discussion of this, listen to my video.
Hi there, Michael Brady with Generosity Wealth Management, a comprehensive full-service wealth management firm headquartered right here in Boulder, Colorado.
Today, I want to talk to about the lessons of 2013. I know it is only mid-December but we’ve got 11 1/2 months and I think it’s close enough. More than anything, I want to talk about the lessons I’m hoping investors… Read More