The Big Picture
MAY 2, 2024
The Fed held its benchmark Federal-Funds rate steady yesterday at 5.25% – 5.5%, leaving the possibility of cuts in the future. Jerome Powell repeated his “ Data Dependent ” mantra. “Persuasive evidence” that higher interest rates were no longer necessary to bring down inflation is what the FOMC wants, and today I want to share a few pieces of that evidence.
Abnormal Returns
MAY 5, 2024
Top clicks this week Widen your investing lens. (awealthofcommonsense.com) Why the stock market usually goes up. (humbledollar.com) The best investors are running their own race. (klementoninvesting.substack.com) How stocks, bonds and cash have performed over the past 30 years. (awealthofcommonsense.com) How major asset classes performed in April 2024.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Nerd's Eye View
MAY 29, 2024
Small business owners often treat their businesses not only as their source of income during their working years, but also as an asset that can be sold to fund their retirement. And while many businesses can build up substantial value over the years, the downside is that, when that value is realized upon the sale of the business, a large amount of it is treated as taxable income.
A Wealth of Common Sense
MAY 21, 2024
Here’s a take from Dave Portnoy: A lot of people share these views. It’s the kind of thing that gets people riled up. The market is rigged! It’s one giant casino where the house always wins! That narrative tends to accompany stories like this: Investors who jumped into the latest online frenzy over shares of the struggling video game retailer lost $13.1 billion in just three days from the mania’s.
Speaker: Duke Heninger, Partner and Fractional CFO at Ampleo & Creator of CFO System
Are you ready to elevate your accounting processes for 2025? 🚀 Join us for an exclusive webinar led by Duke Heninger, a seasoned fractional CFO and CPA passionate about transforming back-office operations for finance teams. This session will cover critical best practices and process improvements tailored specifically for accounting professionals.
Alpha Architect
MAY 31, 2024
There is strong empirical evidence demonstrating that momentum (both cross-sectional and time-series) provides information on the cross-section of returns of many risk assets and has generated alpha relative to existing asset pricing models. Ma, Yang, and Ye’s findings provide another test of both robustness and pervasiveness, increasing our confidence that the findings of momentum in asset prices are not a result of data mining.
Financial Advisor Source brings together the best content for financial advisor professionals from the widest variety of industry thought leaders.
The Big Picture
MAY 9, 2024
Nestled in between lip-sync dancers and fashion influencers, financial fraud lurks on TikTok. At least one person1 has noticed the risks to young consumers of social media: Since August 2020, @TikTokInvestors has been curating the most outrageous money-losing and dangerous videos culled from the “financial experts” at TikTok. The advice ranges from wrong to risky to criminal: -401ks?
Abnormal Returns
MAY 19, 2024
Top clicks this week Three assets that don't diversify your portfolio as well as you think. (morningstar.com) The problematic math of passing down generational wealth. (blogs.cfainstitute.org) International diversification requires a long time horizon. (awealthofcommonsense.com) The S&P 500 is now nearly 40% of global market cap. (apolloacademy.com) Don't confuse selling calls with income.
Nerd's Eye View
MAY 20, 2024
Ongoing research into how advicers can structure their practices to be better and more successful has consistently highlighted the benefits of choosing to serve a specific niche. In fact, the more specific the niche, the better, as a highly specialized niche not only allows an advicer to differentiate themselves in a crowded marketplace of other 'generalist' advicers, but also helps them build a more efficient practice where they serve clients who share similar characteristics (and puzzles to so
A Wealth of Common Sense
MAY 31, 2024
It’s estimated just 1% to 3% of American households owned stocks heading into the Great Depression. Few people made enough money to save and invest back then plus it was difficult to access the market for regular people — no 401ks, IRAs, online brokers, robo-adviors, index funds, ETFs, Robinhood, etc. By the early-1980s stock ownership was more like 1 in 5 households.
Speaker: Abdi Ali, Sr. Lease Accounting Consultant
Join this insightful webinar with industry expert Abdi Ali, who will discuss the challenges that can arise from managing lease accounting with spreadsheets! He will share real-world examples of errors, compliance issues, and risks that may be present within your spreadsheets. Learn how these tools, while useful, can sometimes lead to inefficiencies that affect your time, resources, and peace of mind.
Calculated Risk
MAY 13, 2024
Altos reports that active single-family inventory was up 1.6% week-over-week. Inventory is now up 15.2% from the February bottom, and almost above the maximum for inventory last year! Click on graph for larger image. This inventory graph is courtesy of Altos Research. As of May 10th, inventory was at 568 thousand (7-day average), compared to 560 thousand the prior week.
Advisor Perspectives
MAY 31, 2024
The latest Chicago Purchasing Manager's Index (Chicago Business Barometer) fell to 35.4 in May from 37.9 in April. This is the sixth straight monthly decline and the lowest level for the index since May 2020. The latest reading is worse than the 41.1 forecast and keeps the index in contraction territory for a sixth consecutive month.
The Big Picture
MAY 16, 2024
The Misery Index — the combination of Inflation and unemployment — failed as a bearish criticism of the economy. Unemployment remains at 60-year lows, and Inflation has plummeted from 9% down to the 3s. If you have a bearish mindset , and seek confirmation of that perspective, then the next economic critique after the Misery Index you try on for size is “Stagflation.” We have heard the S-word from Jamie Dimon , Stanley Druckenmiller , Bank of America , Barclays , Fox , Ma
Abnormal Returns
MAY 29, 2024
Nvidia It's hard to overstate just how big a rally Nvidia ($NVDA) has seen. (downtownjoshbrown.com) Then again, few large companies have grown this fast. (theirrelevantinvestor.com) AI A look at the AI tech stacks for various players in the industry. (stratechery.com) Why Zuck and Meta ($META) have embraced an open AI standard. (nytimes.com) AI spending is going to grow as more countries jump into the game.
Advertisement
Join us in this webinar, where we share best practices on how to think about the reconciliation work each month, when best to do reconciliations, how they should be prepared, and some common pitfalls to avoid. Learning Objectives: This course objective is to understand how to properly prepare and review balance sheet reconciliations and its impact on the financial statements.
Nerd's Eye View
MAY 27, 2024
The first few years of building an advisory firm from scratch are typically the most demanding for solo advisors since this often means putting oneself 'out there' as much as possible – working through lead generation services, trying to network with Centers Of Influence (COIs) and the community at large, and battling through all of the "no" s needed to get a "yes" (and therefore a client).
A Wealth of Common Sense
MAY 17, 2024
These are the trailing total returns for the U.S. stock market1 over various time frames: Year to date: +11% One year: +30% Five years: +94% Ten years: +223% Fifteen years: +679% Not bad considering we’ve had two bear markets in the past four years. If you put $10,000 into the U.S. stock market five years ago, your money has essentially doubled: Now look at the returns by year: 2019: +31% 2020: +21% 2021: +26% 2022.
Alpha Architect
MAY 24, 2024
There is strong empirical evidence demonstrating that momentum (both cross-sectional and time-series) provides information on the cross-section of returns of many risk assets and has generated alpha relative to existing asset pricing models. Momentum Everywhere, Even Cross-Country Factor Momentum was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.
Calculated Risk
MAY 29, 2024
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey Mortgage applications decreased 5.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 24, 2024. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.7 percent on a seasonally adjusted basis from one week earlier.
Advertisement
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.
The Big Picture
MAY 6, 2024
It’s taken me months to organize all of my research for my next book project; it’s a lot of stuff, some dating back to 2000. Much of it reflects the bad ideas and numbers, and worse advice, that float around Wall Street. A lot of it has not aged well. But every now and then, something I saved turned out to be prescient — not because it was lucky, but because it contained a well-considered insight that has stood the test of time.
Abnormal Returns
MAY 29, 2024
Podcasts Barry Ritholtz talks with Carl Richards about the behavior gap and how to avoid it. (ritholtz.com) Shane Parrish talks with Morgan Housel author of "Same as Ever: A Guide to What Never Changes." (youtube.com) Amy Arnott and Christine Benz talk with Jamila Souffrant author of "Your Journey to Financial Freedom: A Step-by-Step Guide to Achieving Wealth and Happiness.
Nerd's Eye View
MAY 15, 2024
On April 25, 2024, the Department of Labor (DoL) issued the final version of its Retirement Security Rule (the "Final Rule"), which imposes an ERISA fiduciary standard "that applies uniformly to all investments that retirement investors may make with respect to their retirement accounts ". The new rule represents the latest attempt by regulators to define the types of individuals and advice that are subject to a fiduciary obligation, following on the heels of the SEC's Regulation Best Interest (
A Wealth of Common Sense
MAY 14, 2024
A lot of investors have abandoned international diversification (or at least strongly considered it) in recent years. I understand why this is happening. The U.S. stock market has destroyed all comers ever since the Great Financial Crisis ended. Since 2009, a total U.S. stock market index fund is up more than 660% while a total international index fund is up more like 180%.
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.
Wealth Management
MAY 13, 2024
Stich, who left digital custodian Entrustody in January, joins MarketCounsel this week as executive managing director and will take over a lot of the operational responsibilities from President and CEO Brian Hamburger.
Calculated Risk
MAY 20, 2024
Altos reports that active single-family inventory was up 1.7% week-over-week. Inventory is now up 17.0% from the February bottom, and above the maximum for inventory last year! Click on graph for larger image. This inventory graph is courtesy of Altos Research. As of May 17th, inventory was at 578 thousand (7-day average), compared to 568 thousand the prior week.
The Big Picture
MAY 10, 2024
This week, we speak with Jim O’Shaughnessy, founder and CEO of O’Shaughnessy Ventures. He is also chairman of the board at Stability AI. He is the host of the Infinite Loops podcast and the author of How to Retire Rich , Invest Like the Best , and Predicting the Markets of Tomorrow. We discuss how the book What Works on Wall Street set the tone for his entire career as a quant.
Abnormal Returns
MAY 4, 2024
EVs What is going to become of Tesla's ($TSLA) charging network? (washingtonpost.com) Do EVs need artificial noises? (axios.com) Autos Automatic braking will soon be a standard, required feature on cars. (theverge.com) Do you really want a GM ($GM) car without Apple CarPlay? (bloomberg.com) What goes into a VIN? (theconversation.com) Energy Why Plant Vogle could be the last large scale nuclear power plants built in the U.S.
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
MAY 22, 2024
Non-compete clauses are common features of employment agreements around the business world and are often used to dissuade companies from 'poaching' another's employees, and/or to prevent employees (at least for a certain time period) from taking the knowledge gained from working at one company to a competitor. Which can allow companies to protect the 'investments ' they have made in their employees and maintain continuity amongst their staff.
A Wealth of Common Sense
MAY 24, 2024
Here are some facts and figures about the S&P 500: According to Global Financial Data, the S&P only contained 90 stocks when it was created in 1928. It became the S&P 500 in 1957. At the time, the index was comprised of 425 industrial stocks, 60 utilities and 15 railroads. Financials and transportation stocks weren’t added until 1976.
Trade Brains
MAY 17, 2024
In today’s world, we’re constantly surrounded by a symphony of technology. From the quiet hum of our laptops to the dazzling display of our smartphones, these marvels rely on a hidden partnership between batteries and electronic solutions. Batteries and electronics are the unsung heroes of our modern world. Their seamless partnership is so deeply embedded in our daily lives that we often take them for granted.
Expert insights. Personalized for you.
363 
Let's personalize your content