CKW Financial Group Blog
Active Management: Doing the same thing and expecting a different result?
What is the purpose for active management? Like most correct answers – It depends. For the majority of our industry who all think we are above average (side note: I am an above average driver), active management is the process used to out-perform a benchmark. Most...read more
60/40 Almost a Winner – Case to always stay balanced.
At the end of 2019 a 60/40 portfolio may have been judged as too conservative. But true to form, a 60/40 portfolio is almost back to even as of the end of May 2020. Even if the S&P 500 is 200 points behind the start of the year, a simple rebalance at the end of...read more
Long Term vs Short Term
Do you believe Stocks will outperform Bonds over the next 5 years? Do you believe money you do not need for 3-5 years will outperform the 5 year Treasury at maturity (.5%)? Do you have money you do not need for 5 years in cash? Did you also know: The S&P 500...read more
Keep Digging? Fancy Math Is Not WOrking.
Definitions of Fancy: Expensive, Exclusive, and Elaborate. And our Desires, Hopes, and Dreams of what ‘fancy’ will accomplish. Fancy math suggests lower risk and greater reward. Over the last 25 years (or rolling long term investment horizons of clients), old MPT...read more
Boomers – The Luckiest Generation
The Baby Boomer generation is most often defined as those individuals born between 1946 and 1964. The Vietnam War, recession, stagflation, oil crisis and double digit interest rates was the landscape as the double income households entered adulthood and the work...read more
Less Boomers, It’s Inevitable
Boomers. Roughly 25% of our population (30% at birth), born ~1946 – 1964. In my view, boomers are the luckiest generation ever (more in the next blog). With a shrinking baby boomer population slow, growth of GDP, lower demand and declining value of boomer goods will...read more
Active is Passive
If the definition of Passive is an index created and managed by someone (S&P), then passive indexes change and are therefore potentially active. If an equally weighted S&P 500 portfolio is compared to the cap weighted S&P 500 index, the equally weighted...read more
Why the Rich get Richer
The people who make $5 million a year and spend it all are not the rich. Because at the end of the year they still have nothing. So, who are these rich people and why? Older people who have saved and invested have more than younger people. And people who have saved...read more
Who are the Rich?
You?Adjusted Gross Income (AGI), on tax returns filed with the IRS, based on 2015 data, are as follows:AGI $100,000 or greater = 17.4%AGI of $200,000 or greater = Top 5%AGI of $500,000 or greater = Top 1% of tax returns filed The number of rich people gets even...read more
Average Is Rare
Average is rare, does not stay the same, and slowly moves above and below where the average was. Why does the real estate market report median price while the stock market reports mean valuation? The 25 year average PE is going to rise because PE’s 25 years ago were...read more