The Beauty of Bonds

Historically, stocks have provided appreciation that helped investor portfolios grow. Many stocks also provide returns in the form of dividends. Stock prices have certainly gone up over time, but the path hasn’t exactly been a straight line. There have been some queasy, white-knuckle moments along the way when it felt downright uncomfortable to own stocks.…

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Was October The Low?

Did the S&P 500 bottom on October 12th of last year? Only hindsight will bestow that knowledge. Stubborn inflation and higher interest rates were the big drivers behind the selloff that took us to that October low, but recent data indicates inflation is retreating, comments from Federal Reserve members suggest they may be close to…

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Sell At The Lows

The stock market is down 19% year-to-date, so what is an investor to do? There are plenty who are exhausted by the continuous grind toward lower prices, even with some trend-reversal rallies mixed in. They want to sell because they’re worried about stock prices falling even further than the mid-October lows. No one has a…

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Regarding Large Pullbacks

The age-old advice is to “buy low and sell high”, and it’s hard to argue with that logic.  We cling steadfastly to the belief that if you buy and stay invested over the long term, you’ll have done exactly that.  With history as a guide, the stock market has rewarded investors handsomely, but the path…

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Diversify-Diversify-Diversify

Diversify.  Diversify.  Diversify. It’s one of the key concepts for investors to understand. Most are familiar with the adage “don’t put all your eggs in one basket”, and diversification is essentially the same concept. We’re not dogmatic about investors needing to own certain asset classes.  Some of those asset classes have been dogs for years…

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Buy At The Highs

BUY AT THE HIGHS? Investors often ask if it’s time to dial down stock market exposure when the broad market hits new high prices.  If market appreciation has pushed stocks to an outsized portion of overall holdings, then doing a bit of pruning could make a lot of sense.  Disciplined investors execute such moves regularly,…

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Stay Invested

There’s plenty of sagely advice available from savvy investors. One thing most of them have in common is they stay invested. They may keep some cash on the sidelines to take advantage of unexpected opportunities. They may dial stock exposure up when they think it’s appropriate, and they may dial it down when they deem…

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Think of Dividends as a Reward

Companies paying higher dividends do tend to be more mature.  The mature companies investors want to own are still growing earnings, but that growth is probably more moderate than it is for a younger company whose total accessible market (TAM) isn’t yet defined.  Apple is a fairly mature company, but they keep coming up with…

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What to do if you inherit an IRA or a 401(k)

If you are the beneficiary of an IRA or 401(k) account, you will need to familiarize yourself with the rules of how you handle the account.  After the passage of the 2019 Secure Act, the beneficiary must first determine the category of relationship to the person who died.  Typically, the rules for required minimum distributions…

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Interest rates should rise when economic growth accelerates and history says stocks prices may well rise alongside them

Interest rates should rise when economic growth accelerates…and history says stocks prices may well rise alongside them The stock market has frustrated many investors of late and commentators keep pointing toward the bond market and rising interest rates for the reason.  Interest rates have actually been rising since last August.  The yield on the 10-year…

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Scot W Johnson Named New Principal

HOUSTON, TEXAS, January 29, 2021 – The principals of Adell, Harriman & Carpenter, Houston-based independent, fee-only investment managers, have named Scot W. Johnson as the firm’s fifth principal. He joins the firm’s management team as AHC strategically eyes the future.   “After an exhaustive candidate search, Scot came on board in the latter part of…

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Giving Thanks

Like so many aspects of 2020, Thanksgiving will look different.  Health concerns or travel limitations mean the crowds around dinner tables will be smaller than usual at many gatherings.  Many of us will exchange greetings over video conference rather than in person.  While these circumstances present challenges and disappointment, we will still take time to…

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Stocks VS Economy

Rising stock prices and atrocious economic statistics might seem like they don’t fit together.  It seems like economic activity should impact company profits.  The truth is economic activity does impact company profits, but stock investors are looking toward future profits and economic stats we see in the news reflect what’s already happened.  To use an…

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Staying the Course in a Turbulent Market

We don’t enjoy checking the morning news to hear “stocks will likely open lower this morning (again)”.  We’re invested alongside our clients, so we’re seeing the same impact on our retirement savings.  That being said, market pullbacks are a normal part of stock trading patterns.  There will be stretches where the market trends downward.  Those…

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Simplify Your Financial Life: Make a Bucket List

This is the most elegant explanation of prudent investment management I’ve ever heard, and it came from Steve Adell.  It’s called “The Bucket List”. The idea is to categorize your investment money into three simple buckets which are based on intended use: Cash, Fixed Income, and Growth.  You fill the buckets in order. Bucket #1:…

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Stay Away from These Troubles in College

Before we begin, let’s start with the general understanding that money itself has a cost.  It sounds strange to those who are not in the financial world, but a dollar borrowed from one source may be more expensive than a dollar borrowed from another source. If you borrow a dollar from a friend (pay them…

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