Are stocks reasonably priced right now?

In this week’s podcast, our All Cap Value portfolio manager Brian Hunsaker is filling in for Brett. He’s talking about a big question on A LOT of investor’s minds right now. Should I be getting out of stocks with indexes at or near all time highs?

Brian dives into the question with an analysis from his man-crush Warren Buffett, whose investment approach Brian models. The answer comes down to comparing stocks with the current risk-free rate of return in bonds. Brian also discusses the impact of interest rates.

Listen to how Brian thinks about current stock market prices in the podcast below.

Do you use the F word with your financial advisor?

A significant piece of news regarding Merrill Lynch’s advisor compensation plan came to my attention this week. Let me tell you it frustrated the heck out of me.

It reminds me that everyone needs to be using the F word when they talk with their financial advisor. Why because the F word is what drives a successful client/advisor relationship. If you don’t use it you’re too likely to be taken advantage of.

In this week’s podcast we’re talking about this recent news, what it means for your nest egg, what the F word in finance is and why using it with your financial advisor should be a top priority.

Listen to the podcast and see if you need to clean up your language when you talk with your advisor.

The markets decline 57% (true story) how prepared are you?

Ten years ago this past October 9th marked the stock market high, to that point, before the housing recession-led crash of 2008 and 2009. From that point, for the next seventeen months the markets declined as much as 57% — the single biggest decline in the markets since the 1929 crash.

This week’s podcast is about the questions you need to ask yourself when faced with such a market environment.

Do I have a strategy in place for severe bear markets? How do I know what the right decision is in the face of such a situation? How do I avoid acting with “panic” when others are doing so, and instead use rational decision making?

These questions and several more are what I focus on today. As you’ll see from the data I share, the results of proper decision making are a dramatic shift in your overall wealth.

Please click below to listen and think about how you’d approach a severe bear market as we review a thoughtful course of action.

What We’re Reading

The Unreasonable Formation of Unreasonable Things. Morgan Housel is a fantastic analyst and author. This is another great article of how bubbles form, and the role of behavior in that bubble.

Stocks Won. Brian Wesbury, an Economist that we actually really like (there aren’t that many of them), discusses what we mentioned in our podcast. The power of equities, even at their worst moments, are the best investments for building wealth.

Shit Happens. These are two very important charts that help people focus on the long term. A very quick read, but as important as anything else you will read.