My Investment Shopping Cart

by Bill Parrott on
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Peter Lynch, the legendary portfolio manager of the Fidelity Magellan Fund,  said, “Buy what you know.” As a result, I created my shopping cart investment portfolio consisting of twenty companies my family and I use often. And, like a regular shopping experience, I substituted some products because...

The Middle Child

by Bill Parrott on
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Being the middle child is tough; ask Jan Brady, Lisa from the Simpsons, or Malcolm in the Middle. Most of the attention falls on the firstborn child or the family's baby. Mid-cap stocks suffer the same fate because investors want to own large-cap or small-cap stocks. 

Since 1980, mid-cap stocks...

Small Things

by Bill Parrott on
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Good things come in small packages, which is true for small company stocks. Since 1972 Dimensional Fund's small-cap index has more than doubled the return of its large-cap index, generating an annualized return of 12.7%, compared to 10.9% for large caps. The index returns date to 1927, and the best...

Emerging Markets

by Bill Parrott on
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Emerging markets account for about 14% of the world's stock market cap, or $10 trillion in assets.[1] Companies listed in Brazil, Mexico, Taiwan, Korea, China, and India account for most of the assets in this sector.

Over the past decade, the S&P 500 has trounced the MSCI Emerging Markets Index...

What A Brutal Year!

by Bill Parrott on

Stocks and bonds are falling while commodity prices are soaring. The Federal Reserve is raising interest rates, investors are not happy, and they are losing patience! However, I'm referring to 1994, not 2022.

In 1994, the S&P 500 fell 1.54% and, at one point, was down 9%, and long-term government...

Do You Want More Income?

by Bill Parrott on
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Do you want more income? Writing options is an excellent way to generate a few extra dollars if you own individual stocks. Rising interest rates and increased volatility have made option premiums ripe for picking.

Incorporating an option writing strategy can boost your cash flow in a low...

Do You Offer Insurance?

by Bill Parrott on

Insurance is one thing few people love to buy, and it is something we hope we never use. Thankfully I've never used my homeowner's insurance to rebuild my home from a fire though I've been paying premiums for a quarter of a century. I would have been better off investing my dollars in the stock...

What Can Happen?

by Bill Parrott on
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We recently stress-tested our client's financial plans to determine how they would withstand a 50% stock market correction and a perpetual inflation rate of 5.25%. Thankfully, most plans withstood the test. Since 1971, there have been several corrections of 40% or more – 1974, 2002, and 2008; the S...

A Financial Whirlpool

by Bill Parrott on
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Markets are in a financial whirlpool as they try to navigate the treacherous waters of Ukraine, inflation, rising interest rates, and China's recent lockdown. Stocks and bonds react violently to the headlines, and volatility is off the charts. There are few places to hide.

The Federal Reserve...

Safety Is As Safety Does

by Bill Parrott on

About thirty years ago, a relative told me he only buys certificates of deposit – safest investment in the world, he said, adding that stocks were too risky. He would scour local banks trying to squeeze an extra quarter of a point from the local teller. In 1990, a 6-month CD paid more than 10%...

Stock Market Correction Checklist

by Bill Parrott on

Stocks are sinking under the weight of the Russian invasion. The S&P 500 is down 12%, while the NASDAQ is off 18%. It's a tough time to own stocks. Should you sell? Here is a quick checklist to help you make a better investment decision.

  • Do you need the money?
  • Do you have an emergency fund to...

Diversification

by Bill Parrott on
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Investors are learning about diversification in real-time as markets react to news in Ukraine. Stocks are falling, and gold is rising. Before the invasion, stocks had been a one-way trade as the S&P 500 soared 272% over the past ten years, averaging 14% per year, far outpacing most investments...