Blog Archive

Posts Tagged ‘investment management’

Asset Allocation

Tuesday, June 20th, 2017

The Anxious Bull

Thursday, March 17th, 2016

Provided by Clark Kendall

We are currently in one of the longest-running, biggest wealth-producing bull markets in history, but you would not know it from the headlines or the pessimistic mood of investors.  On March 9, the bull market in U.S. stocks, represented by the S&P 500, celebrated its seventh year.  The index has risen 194% since closing at 676.53 on March 9, 2009.  The Russell 2000 is up 213% over the same time period, and the Nasdaq 100 has gained 311%.  Corporate earnings are up 148% from the first quarter of 2009.

You may be asking yourself why this bull market has not received more respect.  One reason may be that the S&P 500 is down 7% from its record highs in May 2015.  We have also experienced two separate drops of more than 10% between May 2015 and now, and the profit levels of American corporations are down 32% from a record high set in the third quarter of 2014.

Perhaps more importantly, the rise has been gradual, and the recovery from the Great Recession has been incremental and below the recovery rate from previous recessions.  Wages have barely kept pace with inflation, which means that many people don’t feel any wealthier today than they did seven years ago.  Also, investors who didn’t trust stocks, who bailed every time the markets dipped or who sat on the sidelines waiting for a clearer sign of recovery, are NOT wealthier than they were during the Great Recession.

The truth is, only a select few staunch investors have really benefited from one of the steadiest, longest bull markets in our history.  Instead of celebrating, most of us are doing what we humans do best: looking for the next thing to worry about.

Source:

http://blogs.wsj.com/moneybeat/2016/03/09/the-bull-market-is-seven-years-old-why-arent-people-more-excited/

About Clark A. Kendall, CFA, AEP®, CFP® Clark Kendall has more than 30 years of experience in investment management and wealth management strategies. He is among a select few wealth managers worldwide who have earned the triple designations of Chartered Financial Analyst (CFA), CERTIFIED FINANCIAL PLANNER™ (CFP®) and Accredited Estate Planner® (AEP®). He has been named one of the Washington metropolitan area’s top wealth managers by the National Association of Board Certified Advisory Practices (NABCAP) and the Washington Business Journal.

As a founder of Kendall Capital Management, Clark provides intelligent, independent financial direction to high-net-worth individuals and families in and around Montgomery County, Maryland – particularly Montgomery County’s “Middle Class Millionaires.” His financial planning analysis, strategies and approach to client service are designed with these clients in mind. As a fee-only, independent financial advisor, Clark is a fiduciary who is held to the highest standard of any professional advisor in the industry. He sits on the same side of the table as the client and utilizes his skills and talents to serve clients with these common goals and concerns.

Clark’s approach is to actively manage portfolios that meet his clients’ goals in a cost effective manner. As a fee-only, independent advisor, Clark has no allegiance or conflicts with other financial organizations for trading or product selection.

‘Wake Up Call’ in Retirement Planning

Friday, February 26th, 2016

Provided by Clark Kendall

If you or someone you know is set to retire this year, then you have only until April to take advantage of a special provision that is set to expire.  The “File and Suspend” provision of Social Security is going to end, and you should take advantage of it while you still have the chance!

This provision was originally created as a way to encourage people to stay in the workforce longer, under the Senior Citizens Freedom to Work Act of 2000. This approach allows those who had already begun to collect their Social Security benefits to stop and start their payments to earn delayed retirement credits. The more people have used this provision, the more it has drained the Social Security fund.  As a result, Congress has recently voted to strip this provision from their budget, effective in April.

“File and Suspend” at first seems to be a win-win strategy for everyone.  It allows senior citizens to earn additional Social Security credits every year they defer their benefits to the tune of 8% per year. For a married couple, a higher-earning spouse can file for Social Security benefits at the full retirement age of 66 and then immediately suspend them. This allows his or her spouse, who earns less, to receive 50% of the higher earning spouse’s full benefits, which are much higher than the lower earning spouse would be receiving otherwise if they filed for benefits in their own name. Long-term, the couple continues to earn credits at a level higher than the inflation rate, while the higher earning spouse continues to work until age 70. The lower earning spouse then stops claiming their spouse’s benefits and is able to receive their own Social Security checks in their own name.

The largest reason why this impacts Middle Class Millionaires is the extended life span you are enjoying compared to previous generations. “File and Suspend” is most advantageous for long-term married couples who are living longer. You can take full advantage of each other’s benefits while building up monthly and annual benefits for a larger overall payout. You should be considering your longevity to ensure your assets are of appropriate size and allocation to last your lifetime. Another critical component to think about is that with the elimination of “File and Suspend”, senior citizens will now have to rely even more on themselves, as opposed to the government, to secure their retirement comfort and success. It’s important to be proactive and have a plan established so that no matter what the government might institute, you have options and control of your financial future.

About Clark A. Kendall, CFA, AEP®, CFP® Clark Kendall has more than 30 years of experience in investment management and wealth management strategies. He is among a select few wealth managers worldwide who have earned the triple designations of Chartered Financial Analyst (CFA), CERTIFIED FINANCIAL PLANNER™ (CFP®) and Accredited Estate Planner® (AEP®). He has been named one of the Washington metropolitan area’s top wealth managers by the National Association of Board Certified Advisory Practices (NABCAP) and the Washington Business Journal.

As a founder of Kendall Capital Management, Clark provides intelligent, independent financial direction to high-net-worth individuals and families in and around Montgomery County, Maryland – particularly Montgomery County’s “Middle Class Millionaires.” His financial planning analysis, strategies and approach to client service are designed with these clients in mind. As a fee-only, independent financial advisor, Clark is a fiduciary who is held to the highest standard of any professional advisor in the industry. He sits on the same side of the table as the client and utilizes his skills and talents to serve clients with these common goals and concerns.

Clark’s approach is to actively manage portfolios that meet his clients’ goals in a cost effective manner. As a fee-only, independent advisor, Clark has no allegiance or conflicts with other financial organizations for trading or product selection.

Avoiding the Pain

Wednesday, February 17th, 2016

By: Clark Kendall

There’s no question that we experience emotional pain and anxiety when our portfolios are losing money due to market downturns. Behavioral scientists tell us that we feel losses twice as keenly as positive returns. However, that does not tell us what we really want to know. Other than selling at the wrong time and locking in losses, how do we make these downturns less painful?

Economist Richard Thaler conducted a stock market experiment in which he asked people to select one of two investment options. The first option was more heavily weighted in stocks with higher returns and higher volatility while the other option included fewer stocks, lower returns and more stability. Half of the people were shown how that investment would have panned out eight times in the next year, while the other half were only shown the result once a year. In other words, some were looking at the stock market roller coaster eight times as often as the others.

You can probably guess the result: those who saw their results eight times a year only put 41% of their money into stocks. Those who saw the results just once a year invested 70% in stocks. The more often you look at your portfolio, in good times and bad, the more pain and anxiety you are likely to experience, and the more cautious you tend to be.

In a recent blog post, a market analyst looked at all the bear markets and bull markets going back to 1928 and found something interesting. The bull market rallies, on average, delivered 57% returns, while bear markets, on average, took away 24% of the market’s value. The bull runs lasted, on average, 474 days, while bear market drops were more intense, compressed into an average of just 232 days before the next upturn.

In other words, the significant declines were only about half as large as the market gains, but they were much faster, lasting about half as long as the slow, incremental rises that are habitual to bull runs. This was also true at the extremes. On average, gains of 40% or more actually generated an average 84.9% return, while the losses of 20% or more were down, on average, 37.2%. Those significant bull runs lasted, on average, almost two years: 713 days. The most severe downturns lasted, on average, less than a year: 359 days.

Combine these statistics, and you come to a few simple conclusions: bull markets don’t attract a lot of attention, and move more gradually than the eye-catching downturns. Bull markets, over time, generate twice the upside as bear markets do downside. The best way to avoid the mental anguish of these occasional sharp downturns is to spend less time looking at your overall returns. You miss the two steps forward, and most importantly, you also miss the more traumatic one step backward.

About Clark A. Kendall, CFA, AEP®, CFP® Clark Kendall has more than 30 years of experience in investment management and wealth management strategies. He is among a select few wealth managers worldwide who have earned the triple designations of Chartered Financial Analyst (CFA), CERTIFIED FINANCIAL PLANNER™ (CFP®) and Accredited Estate Planner® (AEP®). He has been named one of the Washington metropolitan area’s top wealth managers by the National Association of Board Certified Advisory Practices (NABCAP) and the Washington Business Journal.

As a founder of Kendall Capital Management, Clark provides intelligent, independent financial direction to high-net-worth individuals and families in and around Montgomery County, Maryland – particularly Montgomery County’s “Middle Class Millionaires.” His financial planning analysis, strategies and approach to client service are designed with these clients in mind. As a fee-only, independent financial advisor, Clark is a fiduciary who is held to the highest standard of any professional advisor in the industry. He sits on the same side of the table as the client and utilizes his skills and talents to serve clients with these common goals and concerns.

Clark’s approach is to actively manage portfolios that meet his clients’ goals in a cost effective manner. As a fee-only, independent advisor, Clark has no allegiance or conflicts with other financial organizations for trading or product selection.

Source:

Why Bear Markets Are So Painful

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Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.

Please be aware that you are leaving www.kendallcapital.com and will be redirected to a third party website. Kendall Capital has no control over information at any third party site accessed from www.kendallcapital.com. Kendall Capital makes no representation and is not responsible for the quality, content, nature, or reliability of any linked site. The inclusion of any link does not imply endorsement, investigation, verification or monitoring by Kendall Capital. In no event shall Kendall Capital be responsible for your use of a third party site. Thank you for visiting Kendall Capital's website.