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The main purpose of this blog is to help demystify and expand upon financial concepts that may be confusing for some people. There is such a variety of potential topics, so please feel free to e-mail us with your financial concerns!
The Most Boring - Yet Potentially Valuable - Recommendation an Advisor Can Make
, March 7th, 2022
When there is turbulence in the stock market, this is the sort of recommendation that Advisors often give to clients. Unfortunately, this advice can seem boring, trite, or pointless. Worse, it can lend an appearance that the Advisor has no ideas for dealing with the current market environment and is falling back on clichés. These reactions are understandable from an emotional perspective. When the stock market is falling, taking action – any action – may feel more satisfying than standing pat.
The Changing Face of Defensive Equity Strategies
, September 21st, 2021
Prior to COVID, a popular approach to defensive equity investing centered on buying lower-risk, higher quality stocks. This makes perfect sense and isn’t very surprising. Also not surprising, this sort of strategy tends to overweight the consumer staples sector. After all, when you are looking for earnings and stock price stability, what type of company could be more resilient than the one that makes your favorite breakfast cereal? You always have to eat, so you’ll always buy that cereal. Unfortunately, the shutdown last year provided a unique (and previously unimaginable) way in which this turned out to be untrue. You may still need to eat breakfast, but you may not be buying that particular cereal if the grocery store is closed, there are supply shortages, or you decide to forgo the trip to the store and your Instacart buyer purchases a replacement instead of your favorite.