Cash Is King

by Bill Parrott on

Cash is an asset class like stocks, bonds, or real estate, and it acts as a buffer during times of market uncertainty. When stocks fall, cash is a haven, and it reduces your downside losses. It can also give you peace of mind knowing you have access to funds that don't fall significantly when all...

Do You Have a Blessing Budget?

by Bill Parrott on

I've struggled to write about financial matters lately because Russia invaded Ukraine. It doesn't feel appropriate to discuss wealth or investing while Ukraine is under attack, but I found some inspiration at my church this past Sunday.

Our church recently finished a sermon series called: Are...

Hide and Seek

by Bill Parrott on

I grew up playing hide and seek. I lived near a park, and sometimes the game involved dozens of kids trying to find spots to hide. If you were lucky enough to get the best location, you could stay hidden for a long time as the other kids struggled to find you. A few kids would get frustrated, stop...

Offense and Defense

by Bill Parrott on

The New England Patriots trailed the Atlanta Falcons 28-3 in the third quarter of Super Bowl LI. At that point, the odds of winning the game were about 1% to 3%. Their situation was dark and bleak. Did the Patriots panic or quit? No. They kept their composure and followed their game plan despite...

Buy Bonds?

by Bill Parrott on
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Buying bonds is the ultimate contrarian play because everyone knows interest rates are rising, and when rates rise, bond prices fall. The yield on the 1-Year US Treasury increased 1,528% over the past year, while the yield on the 10-Year US Treasury "only" jumped 64%. All rates along the yield curve...

Volatility Is a Two-Way Street

by Bill Parrott on

Volatility is a two-way street – rising and falling unexpectedly. Most investors equate volatility with risk, but it's not. Stocks are volatile, explosive, and unpredictable whether they rise or fall. Over my thirty-year career, I have never received a call from a client concerned about a rising...

Traffic Jams and Investing

by Bill Parrott on

Have you ever been in a traffic jam? If you have driven on the 5, 10, 15, 405, 101, 110, 40, 70, 35, 91, or 95, you will get stuck in a traffic jam. I put the odds at 100%. Did you ever contemplate walking, thinking it would be faster? Maybe if you only had to walk a few blocks but certainly not if...

My Emotional Rescue

by Bill Parrott on

Stocks are off to a rough start. The NASDAQ is down 10%, and several companies have fallen significantly, including Facebook, Spotify, PayPal, and Etsy. It's a brutal tape.

1990 was my first full year in the investment business, and the S&P 500 lost 6.5%. I thought my career was over because a...

Ready To Retire Early?

by Bill Parrott on

Early retirement sounds lovely. Sitting on the beach, hiking in the mountains, or traveling the world without care is tantalizing. When I was 25 and single, I created a rudimentary financial plan. Since I wasn't married, didn't own a home, or have any children or pets, I could retire early.

Dr...

Bad Market

by Bill Parrott on
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2022 is off to a vicious start as every major asset class is underwater, even Bitcoin. Stocks, bonds, and real estate are down over concerns about Russia, rising interest rates, inflation, and the Federal Reserve. In fact, the S&P 500 and NASDAQ are off to their worst start ever! Ever!

 

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Do You Need A Corporate Trustee?

by Bill Parrott on
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Family dynamics are fascinating. After more than thirty years in the investment management and financial planning industry, I've noticed most families are similar. There are patriarchs, matriarchs, do-gooders, black sheep, brilliant minds, athletes, know-it-alls, Republicans, Democrats, meat...

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Parrott Wealth Management Annual Letter

Despite political turmoil, Delta, Omicron, rising interest rates, increasing inflation, supply chain issues, and several corrections of 4% or more, the three major US indices produced significant gains last year, led by the S&P 500 as it climbed 27...