Members' Wealth

It is good to be large and in charge. As measured by the S&P 500 (Table 1), US large capitalization stock returns relative to other major asset classes have been quite remarkable. US large-cap equity exposure in client portfolios as a percentage of their overall equity is typically the largest equity exposure and for good reason! We should have just put the entire portfolio in large-cap US Stocks. Who needs diversification? I love the benefit of hindsight.

Stock Market Valuation - What it is. What it is not. And Why We Care. Most folks want to talk about recent returns. That’s fine. Returns have been good in 2024 so far! But what we should expect going forward is always harder to say (because we are predicting the future, which is hard) but important to contemplate as it relates to portfolio positioning. With the benefit of hindsight, I believe one can easily look at the (Figure 1) and circle where they wish they would have invested more (at the lows) and where they would have taken some gains (at the highs). But in the moment, as in now, is the top we are at an inflection point or just another step higher in a continued move to the real top? https://lnkd.in/gH-XHQKd

From Adam Smith to Will Smith – Let Freedom Ring Every year on the 4th of July, I do a "freedom run”. It is not organized. I do not measure the time or distance. I try to wear something red, white, and blue (some years subtle, some years not so much) and I run to celebrate life, liberty, and the pursuit of happiness. Then I eat a hot dog! Did you know that Americans consume about 150 million hot dogs on this day? This ridiculousness aside… Did you know that three U.S. presidents died on July 4th? Thomas Jefferson and John Adams both passed away on the 50th anniversary of the Declaration of Independence in 1826, and James Monroe followed in 1831. No other day of the year has the death of three or more US Presidents. Maybe there is nothing here, but this seeming coincidence reminds me of the deep connections between our nation's leaders and the ideals of life, liberty, and the pursuit of happiness and why I choose this holiday each year to reflect on these ideals as well.... https://lnkd.in/gYnukjtJ

Blazing Markets: The Heat Wave and July's Stock Market Opportunities Ok enough already. This heat wave pre-July is way out of control! We have been breaking higher temps left and right, and the stock market is reaching all-time highs. It all seems a little early, doesn't it? Temperature wise, I usually consider July to be the hottest month of the year here in the Mid-Atlantic. But July is also a traditional great month for stocks. https://lnkd.in/geviJ93n

Having been a child of the 90s, my formative investment years were marked by a stock bull market bubble in the late 90s, a blowup in the early 2000s, a subsequent recovery, and then the Great Financial Crisis (GFC) of 2008. As an investment analyst, I subsequently became borderline obsessed with long/short[i] investing. It just made sense to me. Based on my experiences, with no real math or stats behind the “feeling”, there was more than one way to make money in stocks, not just from the price going up but also from the price going down. https://lnkd.in/gt8hqQZh

Embracing the Moment: Why I Finally Bought that Jeep Wrangler of My Dreams For the past 24 years, I've been practicing the math of delayed gratification. I would even say delayed gratification became one of my superpowers. I not only personally lived this life, I used its core philosophy to guide clients toward financial achievement.  I was deeply disciplined, following the ingrained teachings of an early book I read Rich Dad Poor Dad[i]: never buy liabilities or dooddads[ii], only invest in assets. Rich Dad Poor Dad often emphasized using your W-2 income to buy assets that generate income, and then only using the asset-generated income to buy experiences or material items you desire.  Sorry Wharton MBA and CFA Charter, I was a Rich Dad Poor Dad loyalist, long before I met you two. My education is clearly multi-dimensional. #LiveInTheMoment #JeepLife #Wharton #CFA #RichDadPoorDad #DieWithZero #DelayedGratification #FinancialIndependence #JeepWrangler #LifeExperiences https://lnkd.in/g8K4V3W4

When balance is not balance but a huge bet against the S&P 500. “Balanced" can refer to any system or approach that maintains equilibrium, ensuring no single element dominates or creates disproportionate risk. This principle is applied in various fields to achieve stability and harmony. EXCEPT IN INVESTING 😉 A young investment analyst Is tasked with creating a large-cap stock portfolio, seeking to balance growth and value stocks. His style box analysis appears balanced: https://lnkd.in/gdFHvATQ

“I like to go for broke cause I'm that kind of man” My Name is Young – Young MC.   Balancing Self-Insurance and Annuitizing for Longevity Risk As the CEO of a wealth management firm, one of the most crucial discussions I have with clients involves balancing self-insuring for longevity risk and annuitizing retirement income. Both strategies have distinct advantages and potential downsides, and understanding these can help you make informed decisions for a secure retirement. What am I talking about?... https://lnkd.in/giyis_Ez

Why I Still Take Inbound Sales Calls: In the bustling world of wealth management, where each decision can impact millions and every minute counts, you might wonder why a CEO and Chief Investment Officer would choose to personally take at least one inbound sales call each week, when so many others ignore them. Here are my reasons for staying directly connected to the pulse of sales calls: https://lnkd.in/dyUXcpbN

From Grinding to Optimizing: A Journey Towards Balance and Success In life, we often find ourselves caught up in the relentless pursuit of success, grinding away day after day in pursuit of wealth, status, or achievement. For many years, I too subscribed to this mindset, believing that the key to happiness and fulfillment lay in maximizing every opportunity, pushing myself to the limit, and always striving for more. I spent the better part of my life on what could be described as a deferred life plan, sacrificing time with family and loved ones in pursuit of financial gain and professional success. And don't get me wrong; I experienced plenty of time with family, but in hindsight, never enough along the way. But as the years went by, I began to question whether this constant grind was truly sustainable or even fulfilling. It was not until I took a step back to evaluate where I had been and where I was headed that I realized the importance of shifting from a mindset of grinding to one of optimizing. I came to understand that there is immense strength in recognizing when to slow down, reassess priorities, and seek balance in all aspects of life. 100% grinding all the time was not a strength, it was actually a weakness. Maximization is not optimal. Optimization is Optimal, duh?! https://lnkd.in/gK67BpP4