Tag Archives: AssetAllocation

A Chat About The Yield Curve with Ryan English, CFA, CPA, CFP® and Sarah Conwell, MFE



As an investor, it is helpful to understand the yield curve. Its movements are tied to economic growth, monetary policy, and inflation which impact investment portfolios.  

In this episode, Ryan English, CFA, CPA, CFP®, talks with Sarah Conwell, MFE, to explain the significance of two separate points on the curve and the ways investors interpret its shape, slopes, and steepness during economic cycles.

Sarah shares more about:

  • The concept of a yield curve
  • What the yield curve can tell you
  • The shape of the yield curve during economic cycles
  • And more

Resources:

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About Our Guest:

As a fixed income investment professional, Sarah possesses over nine years of experience, and her greatest skills lie in investment research, portfolio management, and macroeconomic analysis. Sarah is a dedicated investment professional with expertise in fixed income securities, financial reporting and analysis, risk mitigation, statistical analysis, financial systems implementation, and revenue generation for overall company growth. Also, she is known for thorough, accurate, and profitable securities recommendations based on analytical processes and data-driven decision-making, and she possesses strong market knowledge in multiple sectors. Additionally, she is consistently relied upon to spearhead projects requiring analysis and collaborative problem solving while working in a fast-paced environment.




A Market Update for the Second Quarter of 2022 with Mark Motley, CFA



The first half of 2022 was the worst first half of a year for stocks in over 50 years, with the fear that inflation was right around the corner. 

In this episode, Mark Motley, CFA, shares a brief market update from the second quarter of the year, outlining the impact of inflation, the prospect of a recession, and what all these key changes mean for you.

Mark shares more about:

  • Why the federal reserve changed its posture from accommodating to restrictive
  • A glimpse into the effects of inflation
  • What market changes you are expected to see this month 
  • And more

To read this market update: Click Here

Excerpts from prior Updates as mentioned in the episode:

1/4/2021 Market Update

Another near-term concern is the possibility of rising inflation. The money supply has risen nearly 25% over the past year … that’s a significant concern as we move later into 2021. It’s well known that the Federal Reserve has committed to an accommodative monetary policy for an extended period. We think that characterization is inaccurate. Instead, we think the Fed intends to remain in an accommodative mode essentially forever to the extent tame inflation allows, and that it will do so until inflation increases … the reason higher inflation is likely to have severe consequences for markets is that it would be the catalyst to change the Fed’s posture. 

2/1/2021 Market Update

Inflation:  We’ve written of this danger before … we note the most common measure of the money supply has expanded nearly 27% in the past twelve months … [we] are entirely confident a higher inflation scenario, should it occur, would greatly upset markets since it would force the Federal Reserve to reverse its easy money policy.

4/2/2021 Market Update

Many think the … $1.9T stimulus bill may be over-stimulus, eventually leading to inflation and a need for the Fed to tighten.  And close on the heels of the last give-away comes talk of much, much more and perhaps too soon, as some are beginning to fear this porridge may too soon become “too hot”.   If a rude discovery is made that free money isn’t free, that may not sit well with either the economy or markets. 

7/1/2021 Market Update

That inflation turned up significantly was no surprise.  The question is whether higher inflation will be transitory or persistent.  … We’ll have to see.  What we do know is this is the most urgent unanswered investment question of the hour … The reason is any moderation in accommodative Federal Reserve policy will be dictated by future inflation, Fed policy in turn defines liquidity, and liquidity drives markets …

10/4/2021 Market Update

If higher inflation is not transient, the Fed will be unable to remain accommodative and markets would likely retrench.  We don’t know how this will play out, but we recognize danger to markets from inflation that may be stickier than markets currently expect, and this may not be sufficiently appreciated …

 … conditions remain positive for markets, but it’s a fragile positive, and inflation appears to be the thing with the best chance of upsetting it.  The world is awash in created money that has bid up stock and home prices.  That’s nice, of course, but underlying, intrinsic values have not risen as much and inflation may test that, particularly if it forces the Fed to a tight money mode. 

1/3/2022 Market Update

Economic growth is booming.  However, inflation remains a looming question, and the Federal Reserve, which had formerly labeled the price surge “transitory,” recently removed that word from its communication, implying more concern about inflation as a longer-lasting problem.  “Owner’s equivalent rent” represents nearly a fourth of the Consumer Price Index (CPI) and the … lags built into the convoluted calculation of this part of consumer inflation mean home price jumps which have already occurred are likely to boost inflation readings for several months to come. 

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A Chat About Balance Sheets with Joe Patterson, CFP®



A balance sheet can be  a useful tool in personal finance to inventory your assets and track growth over time.

In this episode, Joe Patterson, CFP®, explains the benefits of using a balance sheet and some actionable next steps for creating a personal balance sheet.

Joe shares more about:

  • A definition of a balance sheet
  • Why the balance sheet is one of our core client reports
  • How your balance sheet connects to your estate plans
  • And more

Resources:

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A Conversation About Value Investing with Thom Guidi, CFA and Mark Motley, CFA



There is not a simple or succinct definition of value investing.  Generally put, it is a style of investing that is in contrast to growth investing and considers valuation measures when determining stock selection. 

In this episode of the Foster & Motley podcast, Thom Guidi, CFA, and Mark Motley, CFA, discuss the ins and outs of value investing and why it’s an important piece of Foster & Motley investment approach. 

Thom and Mark share more about:

  • The father and grandfather of value investing
  • A definition of value investing
  • The history of value investing
  • Pitfalls to this strategy of value investing 
  • And more

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A Chat About Private Investments with Rachel Rasmussen, CFA, CDFA®



Private investments are different from publicly traded investments like stocks  and bonds. They’re limited to a certain type of investor and have a unique set of considerations. 

In this episode, Rachel Rasmussen, CFA, CDFA®, discusses the lesser known topic of private investments. She references specific examples of private investments and explains how some investors can target a wider range of opportunities than the public markets.

Rachel shares more about:

  • A definition of private investments
  • Types of private investments
  • Why private investments are a good fit for some portfolios
  • And more

Resources:

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A Chat About Alternative Bonds with Zach Horn, MBA, CFP®, CMFC®



As you approach retirement, bonds are likely to become a more significant part of your asset allocation. Typically, bonds, traditional or alternative,  are a more stable way to generate cash flow to replace the paycheck that is lost moving into retirement. 

In this episode, Zach Horn, MBA, CFP, CMFC®, discusses why alternative bonds are a rising trend in the current environment of rapidly rising interest rates. He references specific examples of alternative bonds to help diversify your portfolio.

Zach also shares:

  • A definition of what bonds are
  • What an alternative bond is 
  • The benefits of alternative bonds
  • And more

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A Conversation About Rebalancing Your Portfolio with Ryan English, CFA, CPA, CFP®, and Nicholas Roth, CFP®



Balance is a tricky thing. Something that is balanced today may not maintain its balance; take investment portfolios, for example. When Foster & Motley begins working with a client, they balance their portfolio based on several targets, but over time rebalancing is necessary to maintain those targets.

In this episode, Ryan English, CFA, CPA, CFP®, and Nicholas Roth, CFP® explain their hands-on approach to rebalancing, and the importance of rebalancing across a household of accounts rather than individual accounts.

Ryan and Nick also talk about:

  • Two types of rebalances
  • The importance of rebalancing accounts
  • Why you don’t want one asset class to grow too big
  • And more

Resources:

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A Chat About Social Security with Luke Hail, MBA, CFP®



If you understand the way Social Security works and how it’s funded, you will understand why the probability of it running out of money is extremely low. 

In this episode, Luke Hail, MBA, CFP®, discusses the Social Security system’s benefits and some key points to remember before taking Social Security.

Luke shares more about:

  • When Social Security was established and why
  • Retirement, disability, and survivor benefits provided by the Social Security Administration
  • What factors impact when you should begin taking retirement benefits through Social Security
  • And more

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A Conversation About Charitable and Family Gifting with David Nienaber, MBA, CPA, CFP®, CEPA, and Joe Patterson CFP®



Don’t make a charitable gift simply to get a tax deduction; make a charitable gift because it aligns with your goals. 

In this episode, Dave Nienaber, MBA, CPA, CFP®, CEPA, and Joe Patterson CFP®, discuss two primary ways of transferring your wealth: charitable and family gifting. They also share what you should consider when giving based on your unique circumstances and goals; and that may not be what your friends are doing!

Dave and Joe share more about:

  • What to consider before gifting to charities or family
  • Why you should start with your goals, not tactics for your giving
  • Donor advised funds and other tools to support your charitable efforts
  • And more

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A Chat About Risk Tolerance with Ryan English CFA, CPA, CFP®



Many people’s instinct is to sell when the market takes a hit, but making those decisions based on emotion seldom has the best outcome. 

In this episode, Ryan English, MBA, CFA, CPA, CFP®, shares his insight on the importance of understanding and the questionnaire Foster & Motley uses to help determine their client’s risk tolerance. He explains how the risk tolerance questionnaire informs decisions about the client’s portfolio and investment policy statement. 

Ryan shares more about:

  • What a risk tolerance questionnaire is
  • The importance of understanding your risk tolerance
  • How age plays a role in your risk tolerance
  • And more

Resources:

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