The Big Picture

APRIL 11, 2024

Confused about where we are today? A favorite exercise is to go back to first principles to consider how we got to where we are. (That is a favorite way to find fresh insights). On the equity side, you have to go back a century or so. Equities were considered speculative endeavors, best suited for gamblers and punters. The exceptions? A handful of “Widows & Orphan” stocks, like Ma Bell, some railroads, utilities and the rare bank that was not suffering regular runs.

Commission 351

Commission Taxes Management Electronics 351

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.

Valuation 292

Valuation Taxes Marketing Marketing 292

A Wealth of Common Sense

APRIL 23, 2024

There was a recent poll about my home state of Michigan where they asked people for their thoughts on the state of the nation’s economy today. Just 35% of people described the economy as excellent (6%) or good (29%) while 65% described it as either not so good (28%) or poor (37%). But when asked how they would describe their own personal financial situation these days, a majority of people (61%) described their circ.

Economy 145

Economy 145

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.

Management 143

Management 143

Speaker: Hilary Akhaabi, PhD - Founder, Chief Financial & Operations Officer at Go Africa Global

In the fast-paced world of corporate finance, staying ahead of the curve is crucial for sustainable growth and profitability. This exclusive webinar with leading expert Hilary Akhaabi, PhD, will teach you practical ways to navigate complex financial landscapes and enhance your company's revenue management capabilities. Whether you're aiming to refine your financial strategies or seeking innovative solutions to drive performance, this new session is for you!

Management

Carson Wealth

APRIL 19, 2024

Congratulations, recent college graduate! You’ve worked hard to earn your degree, and now you’re ready to embark on the next chapter of your life. This is an exciting time – one filled with lots of changes, like starting a new career and learning how to manage living on your own. As you transition into the “real” world, one of the most crucial skills you can develop is managing your finances effectively.

Budgeting 143

Budgeting Retirement Strategic Planning Accounting 143

The Big Picture

APRIL 9, 2024

Between book leave and COVID I have been pretty quiet lately. Since it’s been a few months, I thought we could take a quick look at the Federal Reserve Bank of Philadelphia’s State Coincident Indicators out for both January and February 2024.1 As the charts above show, the economy on a state-by-state basis has markedly improved from Q4 2023’s softening.

Manufacturing 306

Manufacturing Banking Economy 306

Abnormal Returns

APRIL 7, 2024

Also on the site Better investors make fewer decisions. (abnormalreturns.com) Top clicks this week Two stocks accounted for a third of the Russell 2000's 5.2% return in Q1. (wsj.com) How major asset classes performed in March 2024. (capitalspectator.com) How to choose among total stock market ETFs. (humbledollar.com) Hyundai and Kia are crushing it in the U.S.

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Assets Accounting Investing Investments 283

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.

Financial Market 137

Financial Market Marketing Marketing Numbers 137

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.

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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.

Banking

Carson Wealth

APRIL 4, 2024

Your parents taught you everything you know about money. From opening your first checking account to taking out your first car loan, they were always there to guide you. But as your parents get older, they may begin turning to you for help with their finances. How do you begin to navigate this new reverse dynamic? It’s not always easy. There are both practical and emotional challenges to consider before you step in and take over your parents’ financial situation.

Management 137

Management Healthcare Medical Estate Planning 137

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.

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Assets 127

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.

Engineering 279

Engineering Sales Planning Marketing 279

Abnormal Returns

APRIL 14, 2024

Also on the site Some interesting developments in the financial media space. (abnormalreturns.com) Top clicks this week These 15 stocks destroyed the most value in the past decade. (morningstar.com) It's way too easy to mislead someone with charts. (awealthofcommonsense.com) Two things you probably don't need to worry about, including index concentration.

Media 281

Media Portfolio Management Investing 281

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.

Financial Advice

A Wealth of Common Sense

APRIL 2, 2024

Millennials around my age group graduated into the teeth of the Great Financial Crisis. The labor market stunk and not just for a short while. The unemployment rate in America averaged nearly 7% from 2006 through the end of 2015: It was hard for young people to find work. And if you did find a job it probably wasn’t something you actually wanted to do.

Marketing 135

Marketing Marketing 135

The Irrelevant Investor

APRIL 9, 2024

The most important thing that determines how successful you are in life cannot be quantified. Success is a loaded word that means different things to everyone. At its core, success is happiness. Hard stop. If you’re rich and miserable, you’re not successful. There’s a hierarchy of happiness. At the foundational level is health. Without that, you have nothing.

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Alpha Architect

APRIL 15, 2024

The justification for neutralizing sectors in factor strategies is a work in progress. To date, academic researchers haven't had an empirical model to mimic the impact of removing sector "effects" on the measurement and performance of factor strategies. The authors develop and test a two-component model to address the question of, "Is Sector Neutrality in Factor Investing a Mistake?

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Investing Investments 123

Calculated Risk

APRIL 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 March 2024. CPI Shelter was up 5.6% year-over-year in March, down from 5.8% in February, and down from the cycle peak of 8.2% in March 2023. Housing (PCE) was up 5.8% YoY in March , down slightly from 5.8% in January, and down from the cycle peak of 8.3% in April 2023.

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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.

Financial Planning

Advisor Perspectives

APRIL 11, 2024

Wholesale inflation heated up last month but came in slightly lower than expected. The producer price index for final demand increased 0.2% month-over-month (s.a.). On an annual basis, headline PPI accelerated from 1.6% in February to 2.1% in March.

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Abnormal Returns

APRIL 21, 2024

Top clicks this week TIPS are on sale. Time to buy. (morningstar.com) Why everyone in finance seems to be doing deadlifts. (wealthmanagement.com) Franklin Templeton ($BEN) is moving aggressively beyond stocks and bonds. (wsj.com) 15 more ideas from Seth Klarman's "Margin of Safety" including 'Investment must be thought of as more than stock selection or making a series of solid individual investment decisions.

Economy 278

Economy Sales Investing Investments 278

A Wealth of Common Sense

APRIL 16, 2024

I was perusing the BLS data following the inflation release last week and one number sticks out like Victor Wembanyana standing next to a group of kindergartners. Auto insurance was up 22% over the previous 12 months versus an overall inflation rate of 3.5%. Look at the change in auto insurance rates these past few years: It’s like a meme stock.

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Insurance Numbers 131

Wealth Management

APRIL 4, 2024

According to J.D. Power’s annual survey on self-directed investors, Fidelity took the top marks for DIY investors seeking guidance, with Charles Schwab following closely behind.

Marketing 110

Marketing Marketing 110

Speaker: Wayne Spivak, President and CFO of SBA * Consulting Ltd., Industry Writer, Public Speaker

If you’re lost in the world of spend management needs and your GAP analysis is lacking perspective on the future state of your business performance, listen up! With the advancement of technology, the implementation of spend management best practices and concrete GAP analyses is more streamlined and accessible than ever before. And while this may sound like great news for you and your clients, it won’t be worthwhile unless you have the latest techniques to back up your ambitions!

Management

The Irrelevant Investor

APRIL 10, 2024

I want to talk about the feelings we get when putting money to work at all-time highs. But first, a quick programming note. Two of the things I love the most are movies and business. Nobody talks about the intersection of my two favorite topics like Matt Belloni. I read him every week at Puck and listen to him every week on The Ringer’s The Town.

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Calculated Risk

APRIL 10, 2024

Here are a few measures of inflation: The first graph is the one Fed Chair Powell had mentioned when services less rent of shelter was up around 8% year-over-year. This declined, but has turned up recently, and is now up 4.8% YoY. Click on graph for larger image. This graph shows the YoY price change for Services and Services less rent of shelter through March 2024.

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Food 129

Advisor Perspectives

APRIL 9, 2024

The headline number for the NFIB Small Business Optimism Index fell to 88.5 in March, the lowest level since 20212. The latest reading was worse than the forecast of 88.8 and marked the 27th straight month the index has been below the series average of 98.0.

Numbers 119

Numbers 119

Abnormal Returns

APRIL 16, 2024

Strategy Joe Wiggins, "It is important to remember that behavioural finance would be redundant if it were easy; if it wasn’t hard it wouldn’t be useful." (behaviouralinvestment.com) Investing requires a measure of optimism in the future. (ofdollarsanddata.com) Fund management 15 more ideas from Seth Klarman's "Margin of Safety" including 'Investment must be thought of as more than stock selection or making a series of solid individual investment decisions.

Financial Advising 274

Financial Advising Media Economy Investing 274

Speaker: Lynnette Khalfani-Cox, The Money Coach®

Niche markets represent a huge opportunity for the financial services industry in America. From college students and women to communities of color and low-to-moderate-income households, niche populations have specialized financial needs – but they often underutilize many valuable financial products and services. How can you better connect with these consumers?

Clients

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.

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Government Economy Assets Marketing 125

Wealth Management

APRIL 23, 2024

The rule, which takes effect in September, “protects the retirement investors from improper investment recommendations and harmful conflicts of interest,” according to Acting Labor Secretary Julie Su.

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Retirement Investing Investments 111

Alpha Architect

APRIL 1, 2024

While there is literature that describes the "domain" of artificial intelligence, there are very few, if any that analyze the valuation and pricing of AI stocks. The authors attempt to fill the void with a two part methodology. Valuing Artificial Intelligence (AI) Stocks was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.

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Valuation 113