We celebrate 4 years of the Nurturing Financial Freedom Podcast with our 48th episode today. Thank you for listening!
As we reflect on the first quarter of 2023, we will do a recap of the markets (data courtesy of YCharts), as well as reflect on some of the headlines and lessons learned so far this year.
Alex starts us off by looking back at the markets, which were largely positive in 2023, as of our recording date of April 20th. After a stock and bond recap, we spend some time explaining bonds and why they're often a misunderstood asset class. Also, gold is interesting. Alex explains why this precious metal is considered both a "panic asset" and an "inflation hedge," perhaps erroneously!
Finally, Alex comes back to one of our favorite principles in this show - diversification. Why is it such an important concept to both understand and utilize?
In the second half of today's episode, Ed talks about not believing the predictions of market prognosticators. Two in particular predicted a very bad Q1 in 2023, which as Alex explained, didn't happen. You simply can't predict the markets. Ed explains what would have happened to your portfolio had you made a panic move based on what you saw or read.
Next, many investment management firms suggested buying dividend stocks and ignoring growth stocks. Ed has the numbers to show why that wasn't a good idea! We also look at the housing market. While "doom and gloom" were predicted, that didn't come to fruition either! Yes, interest rates have gone up, but a limited supply has prevented any drastic changes in housing prices.
Finally, Ed breaks down the collapse of Silicon Valley bank, an event that dominated the headlines for a few days last month. Why did the bank collapse? Ed walks us through the two biggest reasons.
So what did we learn, or perhaps have reinforced, in the first quarter of this year? Don't panic, stay diversified, and focus more on the long-term than the short term. The world is scary right now, but it always has been and always will be.
Alex Cabot and Ed Lambert are always happy to have a conversation with our listeners, whether they are a client or not. Financial literacy is something they are very passionate about at Birch Run Financial.
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://www.birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536
There are special risks associated with investing with bonds such as interest rate risk, market risk, call risk, prepayment risk, credit risk, reinvestment risk, and unique tax consequences. To learn more about these risks and the suitability of these bonds for you, please contact your financial advisor.
Gold is subject to the special risks associated with investing in precious metals, including but not limited to: price may be subject to wide fluctuation; the market is relatively limited; the sources are concentrated in countries that have the potential for instability; and the market is unregulated.
Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.
Dividends are not guaranteed and must be authorized by the company's board of directors.
There are special risks associated with investing with bonds such as interest rate risk, market risk, call risk, prepayment risk, credit risk, reinvestment risk, and unique tax consequences. To learn more about these risks and the suitability of these bonds for you, please contact your financial advisor.
Gold is subject to the special risks associated with investing in precious metals, including but not limited to: price may be subject to wide fluctuation; the market is relatively limited; the sources are concentrated in countries that have the potential for instability; and the market is unregulated.
Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.
Dividends are not guaranteed and must be authorized by the company's board of directors.
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://www.birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536
Any opinions are those of Ed Lambert Alex Cabot, financial advisors, RJFS, and Jon Gay, and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. Stock Market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. International investing involves special risks, including currency fluctuations, differing financial accounting standards, and possible political and economic volatility. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Investing in small cap stocks generally involves greater risks, and therefore, may not be appropriate for every investor. The prices of small company stocks may be subject to more volatility than those of large company stocks. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.
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