Author: Robert Falcon, CPA/PFS, MBA, CFP® Candidate
Release Date: 11/21/17
Just after Halloween, I attended a college planning session at a local high school that was put on by two experienced college planning professionals. While the first hour of their presentation was informative, toward the end of the session, misstatements and exaggerations were made and pressure tactics employed to motivate the attendees to act right then and there. As with any big financial decision, parents should get a second opinion on the financial advice they are given by so-called . . .
Harvesting (Selling) High and Planting (Buying) Low
Author: Robert Falcon, CPA, MBA, CFP® Candidate
Release Date: 7/12/17
I spent quite a bit of time weeding and managing my vegetable garden this weekend. While fertilizing and watering my tomatoes and peppers, I caught numerous fragrant whiffs of my Genovese basil, telling me in no uncertain terms that summer has arrived. While some of my basil will be used in making spaghetti sauce (a/k/a gravy here in Philadelphia) and Caprese salad (fresh mozzarella, garden tomatoes, balsamic, and olive oil), most of it will be ground with pine nuts, garlic, and olive oil . . .
Everyone loves a deal but often investors fall into the trap of an emotional buy, “that low-priced stock is a bargain, and I should buy it.” A five-dollar stock that moves to $10 is a 100% gain it doubles your money; that feels like a win-win, right? Unfortunately, it’s an emotional way of buying stocks. A rational analysis would be that a low-priced stock is not usually a “cheap” stock but may actually be fairly valued or even overvalued.
Take a look at . . .
A broad-based commodities index as represented by the Bloomberg Commodity Total Return Index will help diversify an investment portfolio made up of both stocks and bonds but will not necessarily improve returns in the same portfolio over the long run.
The Bloomberg Commodity Total Return Index is a broad-based index of 24 commodities. The heaviest weighted commodities in the index include natural gas at 10.8%, gold at 9.8% and oil at 9.7%. The index also includes such commodities as . . .
A rising interest rate environment can be good news for holders of floating rate notes.
Author: Jim Olsen, CFA, CFP®
Release Date: 2/19/17
We are in a period where the Federal Reserve has made it very clear that it is in a tightening phase, or a phase in which it wll be raising short-term interest rates. The Fed does this by raising the federal funds rate, which is a very short-term interest rate.
In addition, we may be entering a period in the economic cycle where longer term interest rates may also be rising. Longer term interest rates are impacted by growth and inflation in the economy. The economy has been . . .