FINANCIaL
FIELd NOTES
Putting the Recent Market Volatility in Perspective
The stock market has had a rough week. As of Friday afternoon, the S&P 500 was about 6% off its high. Other parts of the stock market were down even more – the Nasdaq tech-heavy stocks were down more than 10%…
Earnings Season Is Mostly a Big Show
The financial media gives stock earnings announcements far too much airtime. Don’t get me wrong—earnings drive stock prices over the long run. Earnings matter. But the hamster wheel of quarterly announcements is mostly just a big show. Public companies spend far too much time ensuring the data is presented to the investing public in the best light possible.
After a decade of watching earnings releases, here are a few things I’ve learned about earnings season…
Increasing Healthspan and Lifespan in Retirement
A few years ago, I saw this viral Christmas ad. After ridding myself of the onions nearby, I reflected on why prioritizing health and fitness holds such significance to me.
As my first son turned three, I couldn't help but notice how swiftly time was passing. It dawned on me that he'll probably have his own children someday. If I want to actively engage and play with my grandchildren meaningfully down the road, what I do for my health now matters…
Is Buying the Biggest Stocks In the S&P 500 a Bad Idea?
The S&P 500 is at some of its highest concentration levels ever. The top 3 stocks make up over 20% of the entire index’s value. That means it’s quite difficult for the market to do well without these companies performing well. Thankfully, they have delivered. Starting in 2016, they even got their own acronym (FAANG—standing for Facebook (META), Apple, Amazon, Netflix, and Google—since then, Microsoft and others have been added).
Many called it a top in these companies back then, but big tech has continued to carry the market higher. This is one of the rare instances in which investing with the consensus actually worked. They just kept going higher. Despite some hiccups along the way, they all have outperformed the index…
Why The Federal Debt Isn’t Something to Panic Over (Yet)
The high US debt levels have been a popular topic of media attention, especially since the COVID crisis, when rapid stimulus led to rising inflation and a faster-growing debt load for the nation.
While I strongly encourage excessive borrowing in personal finances, I don’t think the nation’s debt load is out of control. For one, the debt relative to the nation’s output (GDP) is relatively stable. Despite an increase over the past few years, the amount the US spends on interest payments is still below the levels of 1980-1990…
Lightening the Executor Load for Your Adult Child
It's natural to want to ease the burden on our loved ones when we pass away. One crucial aspect of this preparation is selecting an executor for your estate. While it's common to appoint a family member, particularly an adult child, to this role, it's equally important to consider how to lighten their load during a challenging time.
Here are some key strategies to consider…