FINANCIaL
FIELd NOTES
Bonds – A Lone Bright Spot
The past week has been one of the most volatile on record. The stock market has been in freefall following the sweeping tariff announcement last Wednesday. Every diversified investor, whether aggressive or conservative, that is exposed to some stock allocation is down. It’s during moments like these that you need diversification to work. And it is.
However, the past few years have been historically bad for bond investors, with rising interest rates resulting in a negative total return over five years…
Repairing an Old Car vs. Buying New
Some common phrases I hear when people buy a new car include variations of: “It was more expensive to repair than to buy new,” or “The repair cost more than the car.”
I’m going to debunk these claims. But before I do, let me say this—if you can afford a new car, go for it! New cars are great. They reduce stress, eliminate hassle, and, for some, bring real enjoyment. But it’s rarely an economical choice.
To be fair, I’m writing this while waiting for our old Toyota Highlander to finish its 100,000-mile service, plus some extra repairs—costing more than $1,300. So, maybe I’m just trying to make myself feel better about the expense…
How to Protect Against Stagflation – Lessons from History
Recent concerns about a new era of stagflation in the U.S. have emerged due to escalating tariff wars. If the tariff war expands and companies are left paying higher prices for parts, it could create an environment where growth slows as consumers are less willing to buy at higher prices, while inflation remains as input costs all continue to rise.
While it’s too early to sound the alarm, looking back at the painful period of stagflation from 1973 to 1982 provides critical insights about how investors can protect themselves if it gets worse. ..
Some Thoughts on the Recent Market Volatility
Last Tuesday, March 11th, the S&P 500 hit the official “correction” level midday - 10% off the all-time highs set just 20 days earlier on February 19th. It was the 5th fastest 10% decline in the past 75 years, driven primarily by tariff uncertainty.
Below are a few thoughts I’ve been thinking about for the past few weeks. As always, I’ve done my best to be as apolitical as possible…
Corrected 1099s - Why You Should Wait to File
A 1099 form reports income from sources such as dividends, interest, and capital gains. Brokerage firms provide these documents based on the information they receive from mutual funds, ETFs, and other investment vehicles.
As tax season approaches, many investors receive their 1099 forms early in the year and feel the urge to file as soon as possible. However, financial institutions often issue corrected versions. If you receive one of these corrected 1099s and have already filed, an amendment to your tax return may be needed…
The Variable Driving Stock Market Growth
If you’ve been paying attention to the stock market lately, you might have noticed some serious gains. One of the biggest drivers for this growth has been the capital expenditures (“capex”) of big technology companies including Alphabet, Amazon (AWS), META, Microsoft, and others.
Capex refers to the money companies spend on long-term assets like buildings, equipment, or technology. For these companies, this often means pouring billions into data centers, technology chips, and other infrastructure…