Perspectives

Perspectives

Offering No Guarantees, History Remains a Powerful Tutor

"The pain is being felt worldwide… Inflation in the U.S. is at a 40-year high…ordinary consumers are seeing prices go up everywhere, in energy, in food and in housing," Nikhil Kumar, Deputy Global Editor of gridnews.com reports. "Fuel prices have been affected by the Ukraine War and have been feeding into the cost of...

Is a Shift in the Growth/Value Seesaw on the Horizon?

According to Innovative Portfolios CIO Dave Gilreath, the long period in which growth stocks dominated the stock market may be moving towards an end, with value stocks poised to resume leadership. Vanguard refers to the "East-vs.-West, Seabiscuit-vs.-Admiral" rivalry between growth and value stocks; Seeking Alpha calls it a tug of war. A Seeking Alpha study...

With REITS, Inflation Needn’t be the Spoiler

Inflation is certainly a topic of concern these days. "New Inflation Fears Rattle Wall Street, Retirement Planners," Lynnley Browning writes in Financial Planning. "Inflation has emerged as the new spoiler for retirement." "Investors have shifted their spectrum of concerns from slow growth, high unemployment, and deflationary pressures at the beginning of 2021, to inflation,...

Real Estate as a Paradigm for Economic Recovery

What didn’t cause the recession is perhaps more important to study than what did, nareit.com writes, positing that the recent recession was caused by dramatic changes in consumer behavior linked to business shutdowns, travel restrictions, and social distancing during the pandemic.” JR Humphreys of Innovative Portfolios agrees, adding that just as the recession was not caused by internal weaknesses...

Financial Insights on the Tail of the Pandemic Swan

“Clients want to hear from you about economic events and how they affect their wealth and investments. This is a time of huge financial uncertainty, and clients and prospective clients want your guidance,” Samantha Russell writes in Advisor Perspectives. “The pandemic has brought current events to the forefront,” she notes. As far as black swan events go,...

The Short and Long of the U.S. Labor Shortage

“Millions are out of a job. Yet some employers wonder: Why can’t I find workers?” reads a recent NPR Morning Edition headline. Post-COVID, some industries are thriving and eager to hire. After the loss of 22 million jobs over the course of the pandemic, with only a little over half of those since recovered, one...

The Big Bad Tax Hike—Calming Client Fears

The Biden administration has made no secret of its intention to effect tax hikes, identifying the two prime targets as corporations and individuals making more than $400,000 annually. While it remains unclear just how much of this tax-raising agenda can progress from proposal to law, your clients are being told daily by the talking...

Exposing Market Bubbles

“The next time a client tells you that stocks are in a bubble, consider a polite way to say, ‘I don’t think that word means what you think it means,’” John Waggoner wrote back in August of 2016, citing Wharton School of Finance professor Jeremy Siegel. An overvalued market isn’t necessarily a bubble—the market...

“20 for 20” Innovation Will Spur a Roarin’ 20s Act II

2020 was not a very good-news year, for either clients or advisors, Innovative Portfolios Chief Investment Officer Dave Gilreath concedes. On the other hand, he reminds us, the stock market is a forward-looking animal, and clues indicate rosier times ahead. In fact, there is a very real potential for the Dow Jones Industrial Average...

Debunking Popular Myths About Post-Election Market Direction

Politics has become such a hot-potato topic that most financial advisers trying to avoid it when talking with clients, Jeff Benjamin observes wryly in Investment News. Whether Democrat or Republican, educating clients and debunking myths that keep clients from making reasoned investment decisions is nevertheless part of an advisor’s job. “People are polarized, but...