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 – 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...
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...
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...
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...
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!
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...
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...
January is an excellent time to crank up your 401(k) plan, and it probably needs a refresh after a year of gains, dividends, interest payments, and contributions. Here are a few suggestions to help you get started.
- Increase your annual contribution amount if you're not adding the maximum amount...
Interest rates are near historical lows, so does it make sense to pay off your mortgage? Eliminating debt is satisfying, but should you sell stocks or bonds to make it happen? Let's explore a few options.
Pay off your mortgage
- If your cash balance at your bank is high, it's wise to pay off...
I loved reading the Year in Sports by Sports Illustrated as a kid. It was a collection of their best pictures from the previous year and required reading for my cohort of friends. So here is a look at how markets, investments, and economic indicators performed last year.
The S&P 500, Dow Jones...
Happy New Year! It's hard to imagine it's 2022, but here we are. Below are twenty-two ideas you can incorporate to make next year your best investment year ever!
- Create a spending plan so you can spend with confidence. Review last year's bank and credit card statements to see if there are...