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
APRIL 28, 2024
Top clicks this week You likely don't need a long-term bond fund. (wsj.com) Allan Sloan, "Don’t fall in love with your money fund." (barrons.com) Good luck trying to dial risk up and down at the right times. (collabfund.com) At what age do we say people are 'old'? (scienceblog.com) What are to make of the big, and persistent, valuation disparities between large and small caps.
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Nerd's Eye View
MAY 3, 2024
Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent study indicates that nearly a third of advisors in the independent broker-dealer channel have considered transitioning to the RIA channel during the past year as they seek higher payouts and not just "independence" but greater autonomy over how they run their businesses and serve their clients.
A Wealth of Common Sense
APRIL 28, 2024
A colleague recently asked me to run the 30 year annual returns for U.S. stocks, bonds and cash. He just wanted the returns. I couldn’t help but slice and dice the numbers and overanalyze the data because that’s what we do here. Let’s dig in. First the annual return numbers for the S&P 500, 10 year treasuries and 3 month T-bills over the 30 years ending in 2023: Some thoughts about these numbers: St.
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.
The Big Picture
APRIL 28, 2024
In the northeast, Spring has fully sprung. Temps are expected to kiss 80 today, and after a mild winter, we have been enjoying abundant sunshine. The daffodils and tulips are up, the magnolias are blooming, and the pear and cherry trees are explosions of colors! All of that blue sky beckons us to hop in a roadster to enjoy the open road. My first high HP car was a BMW convertible, but the open-top car that set the standard was the 507.
Financial Advisor Source brings together the best content for financial advisor professionals from the widest variety of industry thought leaders.
Nerd's Eye View
MAY 1, 2024
A little over 20 years ago, when the Internet was still just a few years into gaining widespread use, the SEC understood its potential to transform how financial advisory firms conducted business with the ability to deliver advice digitally, lowering the barriers to serve clients across the country. However, the challenge for firms that wanted to use their websites to advise clients, but didn't otherwise qualify for SEC registration, was that they would ostensibly need to register in all 50 stat
A Wealth of Common Sense
APRIL 30, 2024
It feels like we’re in a weird place from the perspective of the economy and financial assets. Housing prices seem too high. Consumer prices seem too high. Stock prices seem too high. Government debt seems too high. I understand why people are worried. These things are cyclical and the lines can’t go up and to the right forever. Bear markets, financial crises, recessions, etc. are features we cannot do away wi.
The Big Picture
MAY 3, 2024
She was previously president of Honey, where she orchestrated the company’s sale to PayPal Holdings Inc. for $4 billion. She has been named one of Ad Age’s 100 Most Influential Women in Advertising. She previously held executive leadership positions at Microsoft, Yahoo!, Pinterest, SoFi, Demand Media. BusinessWeek nd the San Francisco Chronicle.
Abnormal Returns
MAY 3, 2024
Berkshire Hathaway Is Berkshire's energy business still a growth engine moving forward? (bloomberg.com) You can't talk Berkshire without talking about Apple ($AAPL). (wsj.com) Why Berkshire Hathaway ($BRK.A) should buy Boeing ($BA). (bloomberg.com) Finance Regional banks are embracing their boring side. (bloomberg.com) SVB is selling its venture capital arm.
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.
Nerd's Eye View
APRIL 29, 2024
Financial advisors add value for their clients not only by helping them grow their wealth, but also by working with them to create a plan for how to use it. While much of this process may focus on the client's own lifetime planning needs (e.g., helping them develop a retirement income plan), it often also addresses the client's goals for their wealth after their death.
Advisor Perspectives
APRIL 30, 2024
The latest Chicago Purchasing Manager's Index (Chicago Business Barometer) fell to 37.9 in April from 41.4 in March. This is the fifth straight monthly decline and the lowest level for the index since November 2022. The latest reading is worse than the 44.9 forecast and keeps the index in contraction territory for a fifth consecutive month.
The Big Picture
APRIL 27, 2024
The weekend is here! Pour yourself a mug of coffee, grab a seat outside, and get ready for our longer-form weekend reads: • We might be closer to changing course on climate change than we realized : Greenhouse gas emissions might have already peaked. Now they need to fall — fast. ( Vox ) • Tesla Is Not the Next Ford. It’s the Next Con Ed. Elon Musk’s EV empire is crumbling.
Abnormal Returns
MAY 1, 2024
April 2024 The S&P 500 lost 4.08% in April 2024. (on.spdji.com) How major asset classes performed in April 2024. (capitalspectator.com) Hedge funds are overexposed to momentum. (ft.com) Strategy Catalysts matter. Good luck identifying them. (behaviouralinvestment.com) How to think about debt. (collabfund.com) Markets have to clear. (fortunesandfrictions.com) Companies Berkshire Hathaway ($BRK.A) owners can thank Todd Combs and Ted Weschler for the Apple ($AAPL) investment.
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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
APRIL 30, 2024
Welcome everyone! Welcome to the 383rd episode of the Financial Advisor Success Podcast ! My guest on today's podcast is Troy Sharpe. Troy is the Founder and CEO of Oak Harvest Financial Group, an RIA based in Houston, Texas, that oversees approximately $750 million in assets under management for about 1,000 client households. What's unique about Troy, though, is how his firm's emphasis on driving organic growth through a multi-pronged marketing strategy, including a radio show, in-person semina
A Wealth of Common Sense
MAY 3, 2024
The season 3 finale of Lost was one of the most mind-blowing episodes of television I’ve ever watched. It completely broke the mold of the show from flashbacks to flashforwards. We have to go back is a line that’s etched into my memory for good: Subscribe to The Compound so you never miss an episode. Further Reading: Who is Buying a House in This Market?
Calculated Risk
APRIL 29, 2024
Altos reports that active single-family inventory was up 2.5% week-over-week. Inventory bottomed in mid-February this year, as opposed to mid-April in 2023, and inventory is now up 12.6% from the February bottom. Click on graph for larger image. This inventory graph is courtesy of Altos Research. As of April 26th, inventory was at 556 thousand (7-day average), compared to 543 thousand the prior week.
Abnormal Returns
APRIL 29, 2024
Podcasts Ben Johnson and Julie Willoughby talk with Jen Abate, Head of Financial Institutions Group at Lazard Asset Management (morningstar.com) Cameron Passmore and Benjamin Felix talk with Meir Statman author of the new book "A Wealth of Well-Being: A Holistic Approach to Behavioral Finance." (rationalreminder.libsyn.com) The biz Goldman Sachs ($GS) is getting out of the robo-business by selling its Marcus Invest to Betterment.
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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.
Nerd's Eye View
MAY 2, 2024
A career as a financial advicer can be remarkably rewarding, as it offers the opportunity to have a meaningful impact on clients' lives all while making a good living. However, the main hurdle that almost every advicer faces, particularly those who launch a practice from scratch, is that the early years are often a struggle as new advicers try to attract clients, generate revenue, and start to build their businesses.
A Wealth of Common Sense
MAY 2, 2024
A reader asks: On this week’s show you discussed lifestyle creep and that one way to mitigate it is by maintaining or increasing your savings rate. Are you aware of any frameworks on how to determine a ballpark target savings rate? Every year my wife and I create an annual budget that outlines the actual cash we receive from our paychecks and annual bonus (after 401k, taxes etc.), we set a target savings rate and th.
Calculated Risk
APRIL 30, 2024
S&P/Case-Shiller released the monthly Home Price Indices for February ("February" is a 3-month average of December, January and February 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’s Upward Trend Persists in February 2024 The S&P CoreLogic Case-Shiller U.S.
Abnormal Returns
MAY 1, 2024
Podcasts Christine Benz and Amy Arnott talk with Meir Statman author of "A Wealth of Well-Being: A Holistic Approach to Behavioral Finance." (morningstar.com) Justin Carbonneau and Jack Forehand talk with Jared Dillian author of "No Worries: How to Live a Stress-Free Financial Life." (youtube.com) Peter Lazaroff talks with Sara Gelsheimer, Senior Wealth Manager at Plancorp, about the unique planning needs for women who are primary breadwinners.
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
Wealth Management
MAY 1, 2024
Guidelines for taking a deeper look at the ways your firm is leveraging each system and how they all work together.
Advisor Perspectives
APRIL 30, 2024
The Federal Housing Finance Agency (FHFA) house price index (HPI) rebounded to 423.0 in February, a new all-time high. U.S. house prices increased by 1.2% from the previous month and are up 7.0% from one year ago. After adjusting for inflation, the real index was up 0.8% month-over-month and up 5.1% year-over-year.
Calculated Risk
MAY 3, 2024
The headline jobs number in the April employment report was below expectations, and February and March payrolls were revised down by 22,000 combined. The employment population ratio decreased, and the unemployment rate increased to 3.9%. Construction employment increased 9 thousand and is now 604 thousand above the pre-pandemic level. Manufacturing employment increased 8 thousand and is now 181 thousand above the pre-pandemic level.
Abnormal Returns
APRIL 28, 2024
Markets Why the stock market usually goes up. (humbledollar.com) How stocks, bonds and cash have performed over the past 30 years. (awealthofcommonsense.com) Average returns hide a lot along the way. (tker.co) Companies A look at Berkshire Hathaway ($BRK.A) stock on the eve of its first shareholder meeting without Charlie Munger. (barrons.com) The cloud computing business is so big that small shifts in market share matter a lot.
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 1, 2024
If the SEC approves mutual fund/ETF dual shares, it might bring a big pivot for the RIA industry.
Alpha Architect
MAY 3, 2024
Momentum continues to receive much attention from researchers because of the strong empirical evidence. Momentum and the Clarity of the Trend was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.
Calculated Risk
MAY 2, 2024
What this means: On a weekly basis, Realtor.com reports the year-over-year change in active inventory and new listings. On a monthly basis, they report total inventory. For April, Realtor.com reported inventory was up 30.4% YoY, but still down almost 36% compared to April 2017 to 2019 levels. Now - on a weekly basis - inventory is up 33.3% YoY. Realtor.com has monthly and weekly data on the existing home market.
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