Everything is Fine?

Everything is Fine?

A quick reminder, the formula for generating investment returns looks like this:   Return = Yield + Growth +/- Valuation Change   Here’s the graphic showing each of the 3 potential drivers of return, broken out with annualized return of each component, by...
Everything is Fine?

Is It Worth Locking in 4%?

4% yields look attractive. Are they?   Rate Environment   We are writing this on 11/2/2022 as markets await the 1pm CST FOMC (Federal Open Market Committee) statement followed by Chairman Powell’s press conference.  Another 75bps hike seems to be a given. ...
Everything is Fine?

Everything is a DCF

We are three quarters through 2022 and it’s been a tough year. We’ve weathered this market turmoil, but I’m fully aware being down ‘less’ is not something most investors view as a win.  Let’s recap what’s happened, while keeping our focus forward. The windshield...
Everything is Fine?

Embracing Your Allocation Opportunity

Two Choices   Let’s assume there’s only two potential investment options. For this exercise we’ll define risk as volatility in return stream, and exposure to large drawdowns…meaning it could be a wild ride where the drag of a volatility tax could come into play:...
Everything is Fine?

More Stocks. Less Bonds. Better Capture.

The plan was to discuss valuations, but July created the opportunity to revisit two important concepts: Asset Allocation Upside and Downside Capture We wanted to touch on both and their impact to our portfolios.   Asset Allocation   Asset allocation is the...