Strategic Wealth Partners was acquired by Kovitz Investment Group Partners, LLC ("Kovitz"), a registered investment adviser with the SEC on May 1, 2024. Strategic Wealth Partners is now a division of Kovitz and its registered investment adviser. Materials created prior to this date were created by Strategic Wealth Partners and are accurate as of the time of publishing.

What We Have Been Reading – Market Commentary & Beyond for April 2024

Our team regularly reads articles from industry peers and trusted resources to stay up to date on financial markets.  We enjoy reading about topics related to economics, investments, current events, and financial planning. In addition to circulating some of the best pieces internally, we thought our clients, partners, and friends might enjoy reading some of the same articles as us. Here are recent pieces that our team members have read, along with some commentary on why we found the respective articles interesting.

Ben Bremen – Outlook for Fed interest rate cuts grows even murkier

This short and sweet article explains the ever-changing headlines with federal reserve policy and interest rates.  It’s a reminder that the economy continues to be dynamic, and no one can accurately predict the direction of interest rates.  When it comes to investing, I’m particularly pleased with how SWP bond portfolios are positioned (to neutralize interest rate risk from rising interest rates). 

Tom Buhrmann – Thinking in Bets by Annie Duke

Thinking in Bets is a book that has an interesting way of framing decision-making with things that involve uncertainty, which is almost everything. I acknowledge that each decision involves incomplete knowledge, luck, randomness, and hopefully some skill, as well as the interplay between these variables. Good decisions can lead to poor outcomes and vice versa. The author’s point is to not judge the decision based on the outcome. I have not completed the book yet, but it’s a thought-provoking way to think about investing.

Andrew Cohn – Employer Roth Contributions: Tips for Employers

SECURE 2.0 included provisions to grow Roth balances. If you are a business owner, plan sponsor, and/or participant, you may benefit from more Roth opportunities. There are different ways that plan sponsors can help implement Roth plans. We can help with plan design and implementation ideas to allow for tax-free distribution in retirement.

Andrew Denenberg – The Psychologist Who Turned the Investing World on Its Head

In March, Daniel Kahneman died. His work on behavioral economics has been hugely influential to the world of investing and wealth management. And on a personal level, his work had a profound impact on my way of thinking.

Michael Garrison – The Most Important Concept in Finance

With the recent death of behavioral economist Daniel Kahneman, this post focuses on one of the most important concepts he identified – loss aversion.  The ability to not overreact to losses is critical for long- term investors, and it is important to know how loss aversion can lead to sub-optimal decisions. 

Kristopher Gutowski – Bank of Japan scraps radical policy, makes first rate hike in 17 years

For the first time in almost two decades, the Bank of Japan has raised interest rates. Time and time again, I have heard warnings that the United States is doomed to follow in Japan’s footsteps when it comes to economic output and productivity in a zero-interest rate policy environment with massive government debt. Only time will tell how the U.S. might be able to learn from Japan as the interest expense associated with their debt increases.

Mike Karmin – How market forces are reshaping the American home

The state of the current housing market is fascinating if not confounding. The median new home sales price is down around 20%, yet we can all agree that we have seen no actual evidence of falling home prices. The article shows how home builders are pivoting as a result of higher prices, higher mortgage rates and how many first-time homebuyers are affected. Their solution: focus on building smaller, more affordable housing.

AJ Price – The Surprising Benefits of Investing At All-Time Highs

Many investors are wary when it comes to investing new cash while the market is at an all-time high. Wouldn’t you rather just wait until the market inevitably has another correction? Not only is this easier said than done, but it could potentially lead to holding cash for multiple years which would drag down portfolio performance. This article takes it a step further and shows that investing at all-time highs has actually led to better performance when compared to investing on any given day or waiting for a 10% decline.

Cory Rappaport – ‘Upside’ inflation risks keep Fed officials wary of turn to rate cuts

The story of the year continues to be awaiting the Fed’s decision on the number and magnitude of interest rate cuts. This article lays out some of the headwinds the Fed has been facing to ensure they make the correct policy change this time around. I take comfort with how SWP has strategically allocated clients’ portfolio where the impact shouldn’t be significant whatever action the Fed decides to take.

Merrick Singer – Use these 3 money tips heading into 2024, economist says

This article reminds us of some important factors for long-term financial success that are often forgotten. A lot of people think investment performance and trying to hit home runs is the end all be all; however, budgeting/spending, having good debt (vs. bad debt), and having a savings plan are all part of a healthy financial plan and are in fact more vital than generating an extra half percent on investment returns.

Michael Tuber – Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again?

There has been plenty of noise over the past few months regarding the residential real estate market.  Mortgage rates have been hovering near their highest point since before the Great Financial Crisis, inventory is historically tight, and the National Association of Realtors announced new rules around broker compensation set to take effect in July.  With so much uncertainty, there is a wide array of opinions on where housing prices are headed.  This article does a really nice job of breaking down each of these elements and what they mean for the housing market in the near and long term. 

Conclusion

We look forward to sharing more articles with you in the future. In the meantime, if you’d like to discuss how the topics in these pieces may apply to your own portfolio, please do not hesitate to reach out to a member of our team.


Disclosure:

This article contains general information that is not suitable for everyone. The information contained herein should not be constructed as personalized investment advice. Reading or utilizing this information does not create an advisory relationship. An advisory relationship can be established only after the following two events have been completed (1) our thorough review with you of all the relevant facts pertaining to a potential engagement; and (2) the execution of a Client Advisory Agreement. There is no guarantee that the views and opinions expressed in this article will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.

Strategic Wealth Partners (‘SWP’) is an SEC registered investment advisor with its principal place of business in the State of Illinois. The brochure is limited to the dissemination of general information pertaining to its investment advisory services, views on the market, and investment philosophy. Any subsequent, direct communication by SWP with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of SWP, please contact SWP or refer to the Investment Advisor Public Disclosure website (http://www.adviserinfo.sec.gov).

For additional information about SWP, including fees and services, send for our disclosure brochure as set forth on Form ADV from SWP using the contact information herein. Please read the disclosure brochure carefully before you invest or send money (http://www.stratwealth.com/legal).

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