The Big Picture
JULY 7, 2024
@TBPInvictus here If you’re tired of California-minimum-wage-and-its-impact-on-limited-service-restaurant-employment stories, I understand. Leave this page immediately. I’m tired of it, too, but some stories are so factually challenged that they demand a response. So, allow me to address a hot mess of a story that appeared recently in the California Globe.
Abnormal Returns
JULY 28, 2024
Top clicks this week What is the best performing stock of all-time? (mebfaber.com) Three investment myths, debunked. (morningstar.com) Lessons learned from the best performing stocks of all-time. (awealthofcommonsense.com) For investors, inflation is THE enemy. (disciplinefunds.com) Ian Cassel, "Most big winners were ugly ducklings that transformed themselves into beautiful swans.
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Nerd's Eye View
JULY 31, 2024
For SEC-registered financial advisors, the prospect of an upcoming examination by the SEC can be a source of high anxiety. This is especially the case with newly registered advisors or formerly state-registered advisors who recently became SEC-registered since they may be uncertain about how the examination process will work, what elements of the firm the SEC will dig into, or what information the advisor will need to provide to the examiners.
Carson Wealth
JULY 25, 2024
Owning a business can be like parenting. You’ve likely experienced many sleepless nights and spent a countless amount of energy on your “baby.” Like parenting, being a business owner can be an enriching journey and make life worth the trip. To protect your business, you need the right mix of insurance. From the relationships that make your business run to the building it’s housed in, insurance can help prevent devastating financial losses or legal consequences.
Speaker: Indy Chakrabarti, Chief Marketing Officer at HighRadius
4 Case Studies to Optimize DSO 26 Days Sales Outstanding. Already better than most. But, should you improve on that? Why would 3 fewer days even matter? It matters because it fundamentally transforms business outcomes. Join this webinar to explore 4 things companies do to reclaim hard dollars - not just soft costs - and go from good to great! What You'll Learn 6 operational KPIs every AR manager should track: Define and track these metrics to enhance performance, drive efficiency, and make infor
A Wealth of Common Sense
JULY 21, 2024
Hendrik Bessimbinder has produced some of my favorite stock market research. Bessimbinder discovered that four out of every seven stocks in the U.S. have underperformed cash (one-month T-bills) since 1926. And just 4% of companies accounted for all the wealth gains for the entire stock market in that time. The stock market runs on power laws over the long run.
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The Big Picture
JULY 6, 2024
Source: New York Times The NYT: The final votes in Britain’s parliamentary elections are still being counted, but one thing is crystal clear: After 14 years in power, the Conservative Party is out. More than that: It’s been thoroughly punished by the British public, reduced to barely 120 seats, the party’s worst result in its history. Several prominent figures — including former Prime Minister Liz Truss — lost their seats.
Abnormal Returns
JULY 7, 2024
Top clicks this week How major asset classes performed in June 2024. (capitalspectator.com) Just how useful is historical financial markets data? (retirementresearcher.com) Don't forget, stocks are real assets. (downtownjoshbrown.com) Europe's stock market has badly lagged the U.S. How much longer can it last? (awealthofcommonsense.com) Beware small sample sizes.
Nerd's Eye View
JULY 29, 2024
Most financial advisors strive to provide excellent client care and prioritize a systematic process to maintain regular communication with their clients both on a scheduled (e.g., annual meeting) and an "on demand" basis. And while individual advisors running solo firms are often able to intuitively sense when they're delivering their best, as they grow and scale their firms, that same advisor eventually goes from individually 'owning' every client relationship to sharing the workload with first
Carson Wealth
JULY 3, 2024
Running a small business involves juggling multiple responsibilities. Managing the business’s finances is one of the most crucial aspects. Proper financial management can be the difference between a thriving business and one that struggles to stay afloat. Here are eight essential financial tips for small business owners to help ensure long-term success. 1.
Speaker: Igli Laci, Strategic Finance Leader
In today’s competitive market, pricing is more than just a number — it’s the cornerstone of profitability. The right pricing strategy ensures that you capture the true value of your offering, paving the way for sustainable growth and long-term success. Join Igli Laci, Strategic Finance Leader, in this exclusive session where he will explore how a well-crafted pricing approach balances customer perception with business objectives, creating a powerful tool for securing both competitive advantage a
Calculated Risk
JULY 8, 2024
Here is another monthly update on lumber prices. SPECIAL NOTE: The CME group discontinued the Random Length Lumber Futures contract on May 16, 2023. I switched to a physically-delivered Lumber Futures contract that was started in August 2022. Unfortunately, this impacts long term price comparisons since the new contract was priced about 24% higher than the old random length contract for the period when both contracts were available.
Alpha Architect
JULY 22, 2024
We propose a novel framework for analyzing linear asset pricing models: simple, robust, and applicable to high-dimensional problems. Using Bayesian Solutions to Resolve the Factor Zoo was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.
A Wealth of Common Sense
JULY 14, 2024
Here’s a scenario I was presented with recently: Five years ago, a relatively conservative investor was sitting on some cash and seeking a more balanced portfolio. To keep things simple, this investor split the difference between stocks and bonds by allocating 50% to equities and 50% to fixed income. Five years later there is a clear winner in terms of performance within this 50/50 portfolio: You basically doubled.
Abnormal Returns
JULY 14, 2024
Top clicks this week How the rise of automated investing has changed the stock market. (awealthofcommonsense.com) Why Bill Ackman spends so much time on Twitter. (sherwood.news) The CAPM doesn't work. Maybe this measure does. (klementoninvesting.substack.com) Why young men around the world are breaking hard to the right. (politico.com) Today's constructive CPI report rang a bell for financial markets.
Speaker: Nancy Wu, Head of Sales and Customer Success at SkyStem
A good, fast, clean audit leads to a happy work life. Join us in this one-hour webinar, where we share the best ways to prepare and conduct your audit process to maximize audit satisfaction and minimize administrative time in month-end close and financial reporting. Learning objectives: This course objective is to review leading practices to maximize audit success.
Nerd's Eye View
JULY 26, 2024
Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that Charles Schwab's latest RIA benchmarking study shows that firms saw significant AUM growth in 2023, thanks in part to strong equity market performance, but also thanks to organic growth initiatives that brought in additional assets from new and existing clients.
Carson Wealth
JULY 18, 2024
Carson Investment Research 2024 Midyear Outlook: Eyes on the Prize The economy continues to see a solid rate of expansion with low risk of a recession. We are targeting a total return for the S&P 500 of 17-20% in 2024. The Bloomberg US Aggregate Bond Index outperforms short-term Treasuries in the second half of the year. Here we sit at midyear, and many investors should be feeling pretty good.
Calculated Risk
JULY 26, 2024
Here is a graph of the year-over-year change in shelter from the CPI report and housing from the PCE report this morning, both through June 2024. CPI Shelter was up 5.1% year-over-year in June, down from 5.4% in May, and down from the cycle peak of 8.2% in March 2023. Housing (PCE) was up 5.3% YoY in June , down from 5.5% in May, and down from the cycle peak of 8.3% in April 2023.
Alpha Architect
JULY 19, 2024
The amortization of volatility should be of concern for private capital asset classes. In order to properly budget for beta risks, it is critical that investors in private assets understand the amount of systemic (beta) risk that will “wash” into their private portfolios. The Impact of Amortizing Volatility across Private Investments was originally published at Alpha Architect.
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As we step into 2024, the lending landscape evolves rapidly with technology, regulations, and market dynamics driving change. For banks and financial institutions to stay competitive and meet the evolving needs of their customers, these drivers must be understood and engaged with. Lenders can anticipate significant transformation fueled by technological advancements, regulatory shifts, and changing consumer behaviors.
A Wealth of Common Sense
JULY 7, 2024
I’ve been writing about the housing market for years now. It fascinates me to no end because housing is one of the most important decisions from a personal and financial perspective. In recent years, much of my focus has been on how broken the residential housing market is. Higher prices and mortgage rates have driven housing affordability to levels we’ve never seen before in the United States.
Abnormal Returns
JULY 6, 2024
Autos How 'electric trees' could allow for charging on city streets. (thecooldown.com) Where an EV saves you money, by state. (axios.com) Why choose a self-driving taxi? (fastcompany.com) Energy Clean energy is being transported over even longer distances. (wsj.com) What's the ideal temperature to set your AC? (vox.com) Solar panels need regular maintenance.
Nerd's Eye View
JULY 19, 2024
Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that Charles Schwab and other brokerage platforms are planning to increase the interest rates they pay on client cash held in their platform or cash sweep programs, which could boost the income of clients who maintain a cash balance in their accounts.
Wealth Management
JULY 29, 2024
In his new book, the ‘father of life planning’ advocates for a broader fiduciary duty, one that extends to all institutions. Here’s how advisors play into that grand vision.
Speaker: Joe Buhrmann, MBA, CFP®, CLU®, ChFC® Senior Financial Planning Practice Management Consultant eMoney Advisor
During an era of evolving consumer preferences, the banking sector is undergoing a profound shift. As customers continue to broaden their perspectives, banking professionals must support their customers' financial wellness by providing holistic financial advice that aligns with individual goals and circumstances. Without adapting, financial institutions will find that loyalty may crumble amid uncertainty.
Calculated Risk
JULY 30, 2024
S&P/Case-Shiller released the monthly Home Price Indices for May ("May" is a 3-month average of March, April and May closing prices). This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index. From S&P S&P CoreLogic Case-Shiller Index Again Breaks Previous Month's All-Time High for May 2024 The S&P CoreLogic Case-Shiller U.S.
Alpha Architect
JULY 12, 2024
An efficient way to improve the expected performance of an equity strategy would be to systematically exclude penny stocks, as well with high asset growth and extreme past returns, especially if they have low profitability (and exclude funds that don’t screen out such stocks). Explaining the Performance of Low-Priced Stocks: The Penny Stock Anomaly was originally published at Alpha Architect.
A Wealth of Common Sense
JULY 26, 2024
There’s an old saying that people don’t attend church on Sundays expecting to hear an eleventh commandment. You go to reinforce what you’ve already learned or learn it all over again. And so it is with the basic principles of finance. Jason Zweig once wrote the following: My job is to write the exact same thing between 50 and 100 times a year in such a way that neither my editors nor my readers will ever.
Abnormal Returns
JULY 21, 2024
Also on the site this week Why meme stocks and sh*tcoins are the logical outgrowth of the analytics revolution. (abnormalreturns.com) A lifetime subscription is anything but. (abnormalreturns.com) Top clicks this week Seven reasons you may want to venture away from the market portfolio. (humbledollar.com) Rebalance your portfolio to tame risk, not to increase returns.
Speaker: Carolina Aponte - Owner and CEO, Caja Holdings LLC
In today's rapidly changing business environment, building a resilient balance sheet is crucial to the survival of any business. A resilient balance sheet allows a company to withstand financial shocks and adapt to changing market conditions. To achieve this, companies need to focus on key strategies such as maintaining adequate liquidity, managing debt levels, diversifying revenue streams, and prioritizing profitability over growth.
Nerd's Eye View
JULY 10, 2024
The Tax Cuts and Jobs Act (TCJA), passed in 2017, was one of the most extensive pieces of tax legislation to be passed in the last 30 years, touching many aspects of individual, corporate, and estate tax. However, most of TCJA's provisions are set to 'sunset' at the end of 2025 – an event that would have at least as much impact as TCJA's initial passage.
Advisor Perspectives
JULY 22, 2024
The weekly leading economic index (WLEI) is a composite for the U.S economy that draws from over 20 time-series and groups them into the following six broad categories which are then used to construct an equally weighted average. As of July 12th, the index was at 19.785, up 1.106 from the previous week, with 4 of the 6 components in expansion territory.
Calculated Risk
JULY 31, 2024
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey Mortgage applications decreased 3.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending July 26, 2024. The Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from one week earlier.
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