For the last several years, with short-term interest rates close to zero, bonds have been the Rodney Dangerfield of the investment world: “I get no respect!” However, since March 2022, the Federal Reserve has lifted interest rates 11 times. This hit bond prices on the...
financial planning
When to be a Contrarian Investor
As an investor, do you follow the crowd or march to your own beat? If more the latter, you might be a contrarian: “A person who opposes or rejects popular opinion.” When is it appropriate to be a contrarian investor? When markets are experiencing extreme highs or...
Good News: Inflation is Down, the S&P 500 is Up, and Humans are Resilient
You can find good news, if you look for it. On the other hand, bad news is easy to find: war, inflation, the COVID-19 pandemic. Bad news is typically unexpected. Financially, bad news is often cyclical. Periods of economic growth are followed by recession. Stock...
Time to Grab an Umbrella Insurance Policy?
When your local weather forecaster tells you that it's going to rain, what do you do? That's easy--you reach for your umbrella. So why not purchase an umbrella that can protect you in stormy financial weather? Umbrella liability insurance (ULI) can do just that. By...
Don’t Believe Everything You Hear About Money
When it comes to money, some people believe ridiculous things. Where do we get these money beliefs? Usually from family or society. Here are some examples: “Money can’t buy happiness.” To a degree, sure it can. While money can’t buy a feeling, having money can create...
Uneasy Investors Should Focus On What They Can Control
Current events remind me of a rip current at the beach. Once swept into it, you have two choices: 1) fight against the undertow and risk a bad outcome; or 2) go with the flow until you are carried to calmer, more predictable waters. It’s a scary experience. In the...
Do Your Homework Before Hiring a Financial Professional
So you need financial advice. Where will you get it? Often a specific event or a long-term need will trigger the search for professional guidance. Furthermore, you may not have the expertise, the time or the desire to research, plan or manage certain aspects of your...
How did Financial Predictions for 2022 Fare?
“Forecasting is difficult because it concerns the future,” goes an old Danish proverb. What makes forecasting so unreliable? The unknown. At the beginning of last year, we didn’t know that Russia would invade Ukraine, that China’s stringent zero-tolerance COVID-19...
Look for Happiness, Opportunities in the Midst of Adversity
“Happy New Year!” many people exult, but maybe you aren’t feeling it. There is a lot of uncertainty surrounding us as we head into the new year: inflation, war, investment volatility, a possible recession looming, waves of viruses. Many families are confronting...
For Some, Bonds are Like a Horror Movie
This year feels like watching a horror movie in the bond market. Van Helsing (the Federal Reserve) is combating Dracula (inflation), trying to put a stake (interest rate increases) through the cash-flow sucker’s heart. Only eight months into these aggressive rate...