1. The Importance of Private Markets
The vast majority of individual investors are familiar with one market — a liquid and public one where companies disclose financials, prices quickly reflect new data, almost everyone sees the same information, and news spreads in seconds. This, of course, is the market for public equities and publicly traded debt securities, which continue to dominate individual investor portfolios and business news headlines. — Nick Veronis
2. Portfolio Return Expectations By Investors Are Too High
Over the long term, there is an apparent relationship between the stock market and the economy. Such is because it is economic activity that creates corporate revenues and earnings. As such, stocks can not indefinitely grow faster than the economy over long periods. When stocks deviate from the underlying economy, the eventual resolution is lower stock prices. Over time, there is a close relationship between the economy, earnings, and asset prices. For example, the chart below compares the three from 1947 through 2023. — Lance Roberts
3. The Housing Market Is in Crisis. And Only One Thing Can Fix It.
If you’re trying to buy a home in today’s market, it’s no secret you’re going to have a tough time. As of 2021, Freddie Mac estimates that the U.S. is about 3.8 million houses short of demand. The precise mechanisms that led to the supply collapse are numerous and complex, but it largely comes down to a cratering of the starter-home sector. — True Life Capital
4. Why Finding Financial Help Sucks and How We Can Fix It
Life throws curveballs. A new baby, a dream home, retirement looming – these are just a few moments where we crave the guidance of a financial advisor. Someone to steer us clear of pitfalls and ensure we're making informed decisions. But finding the right advisor? That's where things get messy. — Derek N.H. Notman
5. What Exactly Is Normal for the Stock Market?
What is normal for the markets and what we wish were normal are two entirely different things. This is important to define because what we wish for, what we hope for, what we expect, influence our perceptions. And our perceptions drive the decisions we make. When our perceptions are wrong, our likelihood of making a poor decision increases. — Jay Mooreland
6. You Need a Plan for Your Big Vision
It’s easy to get caught up in and overwhelmed by all the New Year’s resolution hype that’s been swirling around lately and then brush off making concrete plans for your business. But you need to have a big vision, and just thinking about it isn’t enough; you need a plan. — Paul Kingsman
7. Are Markets Too Optimistic About Rate Cuts in 2024?
For investors, should fundamentals remain solid we would expect the Fed to begin gradually reducing rates by the middle of this year and for long-term rates to stabilize at current levels, before grinding lower over the balance of the year. — Jordan Jackson
8. The Biggest Mistakes Financial Advisors Make With Profit Increase Strategies
In the competitive world of financial advising, implementing effective profit-increase strategies is crucial for success. However, many financial advisors find themselves struggling to navigate this challenge. They may start with high expectations but fail to see the desired results in their portfolio’s performance. By identifying these pitfalls and learning from them, financial advisors can enhance their approach and achieve better outcomes for themselves and their clients. — Susan Danzig
9. The Goldilocks Narrative Reigns for Now
Market narratives have been around for ages. However, the internet and, more recently, social media allow narratives to spread much quicker. Accordingly, they have become more frequent and potent market forces. Following economic data, corporate earnings, politics, global affairs, and many other factors are still crucial for investors. But equally important, especially over short periods, is identifying which narrative(s) most heavily impact markets. Today’s popular narrative is a growing consensus for the Fed to engineer a soft landing and a Goldilocks economy. It’s worth appreciating the Fed and Jerome Powell, purposely or not, started the narrative. — Michael Lebowitz
10. Seniors Still Feeling Inflation Pinch. Social Security Isn’t Helping.
The Consumer Price Index (CPI) has retreated from its 2022 highs, but for many Americans, the good news ends there. For example, from April 2021 through June 2023, inflation outpaced wage growth. As a result, many workers are still struggling to come out ahead and it will likely take a lengthy run of muted inflation and real wage growth to put the inflationary pressures of the past two-plus years fully in the rearview mirror. Not to be forgotten is the point that the purchasing power lost by consumers from 2021 through last year is gone forever. It will never be reclaimed. — Todd Shriber
11. It’s Time To Have Another Conversation With Your Clients About Risk
With the stock market setting its sights on new highs, is it time for advisors to have another serious conversation about risk? With all that is going on across the globe—war in Ukraine and the Middle East, persistent inflation, rising interest rates, a looming recession, and a divided government likely headed to another fiscal cliff—the stock market appears to be climbing a wall of worry. But how long can that go on? When will it end? — Don Connelly