August was the second losing month of 2019 for the S&P 500 (SPX) and other major stock indexes. Bonds were the place to be last month. Our portfolios weathered the storm well losing less than 1% on average. Some portfolios with heavy exposure to municipal bonds even pulled off a gain for the month.
Yesterday was a big day for Elevate, and for me personally. We received word that I, and Jacob, both passed Level III of the CFA® Exam.
Long-time clients know that this is something that I have been working toward for the better part of 5 years and that the CFA Charter is one of the most challenging and prestigious credentials to earn, in any practice, anywhere in the world.
Things are cheap in terms of dollars. And as American’s we take this for granted. We expect that when we hop on Amazon.com tomorrow, this item will be roughly the same price - again in terms of dollars. Folks in other countries have no such expectation. We Americans are extremely lucky to own the world’s reserve currency and that there so much demand for our currency.
Next time you are in Denver, I encourage you to stop by the LocalHost Arena in Lakewood (and check out the scene. Pull up a chair and give computer, console, or virtual reality gaming a try. It’s always fun to try new things – and it is super fun to be able to play football with the kids without concern for a bum knee.
Negative interest rates are not a “net-benefit” to the global economy, rather negative interest rates are a travesty of the global economy. The only folks who benefit are the risk-takers who borrow money cheaply (or even get paid to do it) which they will never repay to speculate on ideas, many of which will never pan out. And who loses? The savers. Our parents and grandparents pay for this speculation – and later, so too will our children. Negative interest rates are a symptom of a very bad global economy, not a benefit to the economy. It’d be like calling a cast a benefit of a broken leg. It makes absolutely no sense. And these are the people calling the shots...
It’s crunch time in the Elevate offices. Jacob and I are in the final stages of preparation for the third and final level of the Chartered Financial Analyst® (CFA®) exam.
After a 10-year economic expansion... a humongous expansion of debt (far in excess of GDP growth)... and after stocks have gone higher and higher and higher for what seems like forever... the stage is set for what my colleague Steve Sjuggerud calls the "Melt Up."
As the name implies, the Money Weighted Return weighs returns based on how much (or how little) money was in the account at the time the return was generated. What this means to the investor is simply – the MWR answers the question “how am I doing toward my goals?”. This is the number that you would use to gauge your position in relation to your long-term goals.
What’s in a number? If a picture is worth a thousand words can a number be worth an exponential amount of that thousand? Dare I answer with a resounding “yep!”.
Quarter one of 2019 is in the books. The markets got off to a great start this year, but most of the return came in the first 2 months.