Posts by Melissa Ellis
Earnings in Focus
Approximately 2,300 publicly traded companies will report earnings this week. As such, it is a big week for earnings and by the end of it, we should have a good read on the overall tenor of earnings for the quarter ended September 30th. This is a pivotal quarter because the aggregated analyst estimates for…
Read MoreRisk Tolerance: Helping Your Clients Understand Their Portfolio
There’s often a gap between advisors and their clients when it comes to defining risk tolerance. The problem? This is one of the most important aspects of a financial plan to navigate well, as it helps set and align client expectations. Do this well, and clients can retain a higher degree of trust, even…
Read MoreA Fed Balance Sheet Primer: One Trillion Down… Six to Go?
Below is a picture of the Fed Balance sheet. These are the assets held on the Fed Balance Sheet. This is the economic tool the Fed started using as a policy tool during the Great Financial Crisis. The balance sheet amounts to a mechanism through which the Fed can add or subtract liquidity (i.e.,…
Read MoreThe AI Goldrush
The Generative AI ERA is upon us. With Microsoft Corporation’s acquisition of OpenAI and the company’s ChatGPT Generative AI language model then being infused into Microsoft’s software suite this year, an AI competitive race has begun. Companies and solutions that harness AI and introduce large scale efficiency and productivity into the economic landscape are…
Read MoreGuiding Your Business-Owning Clients During Their Exit
If your client is an owner of a business, how they exit their business is likely the most significant financial decision they will ever make. For some, this looks like reaching retirement and passing the baton. For others, they may still be in their 30’s or 40’s and actively looking for their next investment…
Read MoreBefuddling Markets So Far This Year
In years like 2023 that are marked by excessively narrow returns (only a handful of stocks are driving broad index returns) it can be helpful for people to understand the market undercurrents…. particularly for those who hold the stocks that have not participated in the rally. First, let’s consider the third quarter 2023. Here’s…
Read MoreThe US Federal Financial House: A Sobering Reality
This week we are taking the opportunity to examine the financial well-being of the US Federal Government. Considering Fitch’s recent downgrade on the financial rating of the US government as well as the upcoming potential for yet another government shutdown due to the ridiculous political process through which the US government is funded, this…
Read MoreShould Advisors Make a TAMP Part of Their Value Prop?
When it comes to turnkey asset management platforms (TAMP), advisors generally make the decision based on how a TAMP benefits their operations. Understandably so – its benefits are substantial when you have the right fit. That being said, the case for a TAMP matters to your clients too. Some advisors are more comfortable to…
Read MoreSome Longer-Term Perspective
It’s easy to get caught up in the short-term market action. What happened to stock markets this week? Are earnings better or worse than expected? Are we headed into recession? It is presently an admittedly interesting time with the economic uncertainty about inflation, recession, and the Fed’s tightening policies. Also, we have the fervor…
Read More5 Key Decisions to Improve Productivity in Your Advisor Firm
Tell us if this soundbite sounds familiar: “I wish I had more time to spend on growing my business. I spend so much time in the weeds that I feel like I don’t have time to grow.” We recently heard this while talking with an advisor who is struggling with inefficiencies in their…
Read MoreInflation Readings This Week
Below are the inflation readings through the end of June, 2023. The blue line represents the year-over-year change in consumer prices while the red line represents the change in producer prices (commodities). One can see progress has been made on the inflationary front since the Fed began its tightening campaign in March of 2022…
Read MoreA Market Pullback or Something More?
Here’s a chart below of the S&P 500 Index (in yellow), the NASDAQ Composite Index (in purple) and the Bloomberg Aggregate US Bond index (in blue) since the end of June. At the midway point of the third quarter and after most companies have reported earnings, the capital markets are retracing some of their…
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