April, 2024

article thumbnail

A Short History of Stocks

The Big Picture

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.

article thumbnail

Top clicks this week on Abnormal Returns

Abnormal Returns

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 257
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Weekend Reading For Financial Planners (April 6-7)

Nerd's Eye View

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that customer arbitration claims related to the SEC's Regulation Best Interest (Reg BI) nearly doubled between 2022 and 2023, suggesting that greater awareness among investors of the increased standards for broker-dealers and their registered representatives could lead to greater accountability for violations of the regulation.

article thumbnail

Is Auto Insurance Becoming a Crisis?

A Wealth of Common Sense

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.

Insurance 122
article thumbnail

Register Now: Sneak Peek Into Close Automation SkyStem Web Demo

Technology is rapidly changing the way accountants perform and manage month-end activities. Spreadsheets, email, and shared drives no longer have to slow us down. Join us as we present a "sneak peek" recorded demo of SkyStem's month-end close solution – ART. In under four weeks, your team can start reaping the benefits of month-end close automation by vastly reducing spreadsheets, cut down on reconciliation work, speed up the month-end close, and better manage your remote team.

article thumbnail

YoY Measures of Inflation: Services, Goods and Shelter

Calculated Risk

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.

Food 128

More Trending

article thumbnail

What Recession? State Coincident Indicators

The Big Picture

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.

article thumbnail

Tuesday links: buying business with cash

Abnormal Returns

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.

article thumbnail

In The Long Run, Stocks Outperform Bonds… Or Do They?

Nerd's Eye View

Financial advicers are intimately familiar with the phrase, "Past results are not indicative of future performance." Every document that considers the facts around any particular asset class will invariably include that disclaimer, but constructing a portfolio consisting of a mix of equities, fixed income, and other assets requires investors and advicers to make some fundamental assumptions around long-term expected returns and correlations between assets. 3 common assumptions that have driven a

article thumbnail

Producer Price Index: Wholesale Inflation Rises to 2.1% in March

Advisor Perspectives

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.

123
123
article thumbnail

2024 Lending Outlook: Innovations and Evolutions in the Financial Sector

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.

article thumbnail

MBA: Mortgage Applications Increased in Weekly Survey

Calculated Risk

From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey Mortgage applications increased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 12, 2024. The Market Composite Index, a measure of mortgage loan application volume, increased 3.3 percent on a seasonally adjusted basis from one week earlier.

Economy 115
article thumbnail

Generational Luck in the Housing Market

A Wealth of Common Sense

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 129
article thumbnail

Helping Aging Parents Manage and Protect Their Finances

Carson Wealth

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.

article thumbnail

Tuesday links: ironclad proof

Abnormal Returns

Markets Investors are coming to terms with higher short-term interest rates. (nytimes.com) All the narrative rolling around the markets including 'Sticky inflation.' (ft.com) Crypto A spot Bitcoin ETF has provided crypto skeptics cover to get into the business. (barrons.com) The rise in Bitcoin has caused some long term holders to sell. (coindesk.com) Finance Financial institutions are increasingly relying on the public cloud operators.

article thumbnail

Banking on Loyalty: Holistic Financial Advice for Unparalleled Business Growth

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.

article thumbnail

Don’t Be Afraid

The Irrelevant Investor

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.

121
121
article thumbnail

NFIB Small Business Survey: Optimism Falls to Lowest Level Since 2012

Advisor Perspectives

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
article thumbnail

Weekly Initial Unemployment Claims Decrease to 211,000

Calculated Risk

The DOL reported : In the week ending April 6, the advance figure for seasonally adjusted initial claims was 211,000 , a decrease of 11,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 221,000 to 222,000. The 4-week moving average was 214,250, a decrease of 250 from the previous week's revised average.

123
123
article thumbnail

Who is Buying a House in this Market?

A Wealth of Common Sense

According to Redfin, we just hit another new all-time high in the median monthly payment (based on current home prices and mortgage rates): The median payment for a new purchase has doubled since 2021. Mortgage rates were back up to 7.4% this week. Nationwide housing prices are still are all-time highs and up around 50% since the end of 2019. There has been this feeling of something has to give for a while now but nothi.

Marketing 115
article thumbnail

Navigating Financial Storms: Strategies for Building Resilient Balance Sheets

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.

article thumbnail

NAIFA Trustee Kagawa Honored for Public Service

NAIFA Advisor Today

Congratulations to NAIFA Trustee Stephen Kagawa , LUTCF, FSS, on being named the 71 st recipient of NAIFA-Los Angeles ’s Will G. Farrell Public Service Award. The CEO and Chairman of the Board of The Pacific Bridge Companies has been a loyal NAIFA member since 1986.

105
105
article thumbnail

Personal finance links: keeping your focus

Abnormal Returns

Podcasts Roger Whitney talks retirement challenges with Christine Benz. (youtube.com) Sam Parr talks with 'Ryan' and 'Jeff' about the reality of retiring early. (podcasts.apple.com) Peter Lazaroff talks with Taylor Schulte and Benjamin Brandt about the new Retirement Podcast Network. (peterlazaroff.com) Justin Castelli talks curiosity and more with Tom Morgan.

article thumbnail

Steward Adds Pair of Firms, $488M Under New Acquisition Model

Wealth Management

Monaco Capital and Saling Simms have become the second and third firms to join Steward Partners’ new Legacy Division, established via acquisition late last year.

Sales 109
article thumbnail

Existing Home Sales Experience Largest Decline in 16 Months

Advisor Perspectives

Existing home sales experienced their largest monthly decline in over a year in March. According to the data from the National Association of Realtors (NAR), existing home sales fell 4.3% from February to reach a seasonally adjusted annual rate of 4.19 million units. This figure came in lower than the expected 4.20 million. Existing home sales are down 3.7% compared to one year ago.

Sales 104
article thumbnail

Putting the ‘Tech’ in Spend Management Techniques

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!

article thumbnail

MBA: Mortgage Applications Decreased in Weekly Survey

Calculated Risk

From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey Mortgage applications decreased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 29, 2024. The Market Composite Index, a measure of mortgage loan application volume, decreased 0.6 percent on a seasonally adjusted basis from one week earlier.

Marketing 128
article thumbnail

How to Lie With Charts

A Wealth of Common Sense

A reader sent me the following chart asking for my thoughts: I honestly don’t know who the creator of this chart is. I don’t know the intention of it either but the fact that the title contains the word collapse makes it sound scary. Knowing that housing prices in the U.S. are at all-time highs makes this chart seem suspect, but the data checks out.

116
116
article thumbnail

Direct plans of mutual funds offer much higher returns than regular plans, more than the difference in their expense ratio

Truemind Capital

Do you know that direct plans of mutual funds offer much higher returns than regular plans, more than the difference in their expense ratio? To know better, read it till the end. Every mutual fund scheme has two plans to offer – Regular & Direct. Both plans have the same fund manager and the same portfolio. The only difference is the expense ratio.

Planning 105
article thumbnail

Monday links: big lessons

Abnormal Returns

Strategy It's way too easy to mislead someone with charts. (awealthofcommonsense.com) Once you start humble bragging, it's time to rein things in. (radreads.co) Companies Taiwan Semi ($TSM) is doubling down on its U.S. production plans. (arstechnica.com) The path to a new and improved Paramount Global ($PARA) is complex. (finance.yahoo.com) Global With a rate hike in the books, is Japan's economy finally normalizing?

article thumbnail

Connect, Care, Convert: Secrets to Establishing Trust with Niche Markets and Turning Them Into Clients

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?

article thumbnail

Nine Investment Must Reads This Week

Wealth Management

KKR logged $3 billion in sales in products aimed for the private wealth channel—up from $400 million in sales per quarter in 2022. Morningstar published an explainer on the growing world of interval funds. These are among the investment must reads we found this week for wealth advisors.

Investing 104
article thumbnail

Enjoy Cheaper Rent While You Can. It Won’t Last.

Advisor Perspectives

he current state of the market for renters is akin to being in the eye of a multi-year hurricane. Rents surged in 2021 and 2022, driving a wave of apartment construction that helped to stabilize or even lower prices this year.

Marketing 111
article thumbnail

Comments on March Employment Report

Calculated Risk

The headline jobs number in the March employment report was above expectations; and January and February payrolls were revised up by 22,000 combined. The participation rate and the employment population ratio both increased, and the unemployment rate decreased to 3.8%. Leisure and hospitality gained 49 thousand jobs in March and is now above pre-pandemic levels.

Numbers 126