Author Archives: Nvest Wealth Strategies

2024 Q4 Nvest Nsights Newsletter

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Printer Friendly PDF: 2024 Q4 Nvest Nsights Newsletter which also includes benchmarking and data on investments widely utilized in our current tactical strategies.

2024 Year in Review | Steve Henderly, CFA

There was no Santa Claus rally to conclude 2024. In fact, away from the largest technology names which permitted indexes like the size-weighted S&P500 to move upward, the average stock received a few lumps of coal in December.  But even without a year-end rally, 2024 exceeded the expectations of most investors.

Twelve months ago, the S&P500 stood at a level of 4,770 and the average strategist’s target for 2024 was an advance of just 2%.  A variety of concerns led the consensus to project a relatively mild return in the stock market as we entered 2024.  Along with inflation and interest rate uncertainty, 40% of voters around the globe would choose new leadership; the most in history.  Talk about uncertainty!    Despite these concerns, the S&P500 leapt roughly 24% and logged 57 record highs to close at a level just shy of 6,000.  How can the consensus so often miss the mark?

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Dec 2024 Monthly Commentary – Comedian

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 “Comedian”  | Steve Henderly, CFA | Nvest Wealth Strategies®

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Original work by artist Maurizio Cattelan. Image is a screen shot from Wikipedia, and used for illustrative purposes only to provide context about the work which sold at recent art auction.

What are some of the most famous works of art that come to mind? The Mona Lisa, Van Gogh’s Starry Night, or perhaps a masterpiece by Picasso or Monet? We often hear of art fetching astronomical sums at auction.  Yet the question of what constitutes “art” or how the monetary value is derived can be a topic of fierce debate.  While value of art may be in the eye of the beholder, most people would not consider a banana duct-taped to a wall as art. The art world was recently stunned when such a piece, aptly named “Comedian”, sold for an eye-watering $6.2 million – accompanied by a certificate of authenticity and instructions for display. In a world where absurdities abound (Bitcoin trading near $100,000 comes to mind), one might wonder: can we really claim monetary policy is too tight when such frivolities command such staggering sums? Does the Fed truly need to consider further rate cuts, or would a pause be more appropriate?

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Nov 2024 Monthly Commentary – One and Done?

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One and Done? | Steve Henderly, CFA | Nvest Wealth Strategies®

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Twenty years ago, an influx of dominant high school basketball players caused controversy among the NBA and its players union, and in 2005 the “one-and-done” rule was implemented.  The rule stipulated players coming out of high school must spend at last one year at the collegiate level or alternate organization to better prepare for the physical and mental demands of the NBA.  While “one-and-done” is generally associated with athletes fixated on going pro, a dramatic reversal higher in interest rates last month leaves some already questioning whether the Fed’s recent pivot to rate cuts will be “one-and-done” after the FOMC meeting this week.

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2024 Q3 Nvest Nsights Newsletter

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Turbulent Ascent Continues | Steve Henderly, CFA

Despite a bumpy journey, investors experienced attractive growth during the 3Q with the S&P 500 rising by 5.9% to reach a new all-time high.  Client portfolios benefited strongly with both stocks and bonds enjoying price appreciation.  This coincided with the Federal Reserve implementing its first rate cut after a year-long pause.Continue reading→

Sept 2024 Commentary – Air Pockets

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Air Pockets | Steve Henderly, CFA | Nvest Wealth Strategies®

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One of the biggest thrills for roller coaster aficionados is the sensation of free-fall in their stomach as the train makes its way over the edge of the first drop.  Perhaps you’ve experienced a similar sensation during a flight where there was turbulence or an air pocket.  If it was unexpected, it probably caused brief anxiety.  Earlier this year, a flight from London to Singapore was going smoothly until the plane experienced a sudden and dramatic change in altitude, dropping nearly 200 feet in less than 5 seconds.  Panic probably best describes what passengers felt.  A drop like that can throw anyone not securely in a seat belt into the  ceiling and then quickly crash back down; more than half of the flight’s passengers required medical treatment as a result of this unexpected air pocket.

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Aug 2024 Commentary – Signs of Life

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Signs of Life | Steve Henderly, CFA | Nvest Wealth Strategies®

Printer Friendly PDF: August 2024 Commentary

Ever feel confused by highway signs?  “Slow Children at Play”, or “Caution Pedestrians Slippery When Wet.”  A traffic sign in England says, “Right Lane Must Turn Left.”  Or how about “Entrance Only.  Do Not Enter”.  And if you see a large sign announcing, “Welcome to Accident,” you’re probably entering the town of Accident, Maryland.  I’m sure you can think of similar perplexing signs in your travels.  The world is giving us a lot of confusing signs right now, and sometimes we hardly know where we’re headed or what we’re doing.  The same is often true with investing; for example, good economic news is sometimes viewed as bad by the markets.  Or in the case of the last several years when inflation was running too hot, weak economic news is often viewed favorably.

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2024 Q2 Nvest Nsights Newsletter

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Game Point! | Steve Henderly, CFA

Tennis great Roger Federer won nearly 80% of the 1,526 singles matches he played over his career.  Yet you might be surprised to learn that he won just 54% of the points in those matches!  Even top-ranked tennis players win barely half of the points they play… which also means they lose almost half of the points they play.  Interesting.  In Charles Ellis’ book, the “Loser’s Game”, stock market investing is likened to the game of tennis.  In that book, he explains that success is determined by avoiding big mistakes and keeping the ball in play rather than by attempting aggressive hits.  We can’t help but feel the analogy aptly applies to the deceptive allure of the S&P 500’s performance YTD – where performance is being driven by the spectacular gains of a few mega-sized tech companies.

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Declaration of Financial Independence

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Declaration of Financial Independence | Jordan Ranly, MBA

Happy Independence Day – a day synonymous with our nation’s freedom from foreign rule. Might this be an opportune moment to declare your financial independence? Similar to how our nation’s founders envisioned a future of opportunity to better control our own destiny, LIVING LIFE financial planning empowers one to shape long-term dreams.

Begin by envisioning your future. Where do you see yourself in 5, 10, or even 20 years? Perhaps it’s traveling the world, owning a second home, funding children’s (or grandchildren’s) education, retiring comfortably, or leaving a significant legacy for your loved ones or charitable causes. Our LIVING LIFE goals worksheet can help guide you and loved ones through this process. Visualizing these goals provides direction and motivation for your financial planning journey.

To effectively map your financial future, it’s crucial to set SMART goals:

  • Specific: Define each goal clearly. Instead of “saving for retirement,” partner with Nvest to specify how much to save and by when.
  • Measurable: Set criteria to track progress; an annual savings target and budget.
  • Achievable: Ensure goals are realistic based on your current financial situation and resources. Divide larger goals into smaller, manageable steps to maintain momentum.
  • Relevant: Align your goals with your values and priorities. Consider how achieving these goals might lead to overall well-being.
  • Time-bound: Establish deadlines for achieving each goal. This adds urgency and helps one stay focused on taking consistent and disciplined actions.

For example, if your goal is to retire comfortably at age 65, LIVING LIFE financial planning is here to help.   We can calculate how much to save each month to reach your retirement savings target based on current assets, income, living expenses, and desired lifestyle.

A comprehensive financial plan that integrates savings, investments, and risk management strategies is imperative. Is it appropriate to maximize pre-tax contributions to retirement accounts like IRAs, 401(k)s, or 403(b)s to benefit from potential tax savings and employer contributions? Are you building flexibility into your plan via regular contributions to a Roth and/or personal brokerage account?  Are any other investment ideas (ie: rental property, private equity, etc.) worth considering and how does that impact diversification across asset classes to manage risk and optimize long-term growth potential?  Nvest is happy to study these questions.

We encourage clients to meet periodically with Nvest to review financial plans and consider adjustments as circumstances change. Life events such as marriage, children, career change, or economic shifts may necessitate modifications to your goals or strategies. Periodic reassessment ensures your plan remains relevant and adaptable to evolving needs.

Don’t forget to celebrate milestones along the way! Whether it’s paying off a significant debt, achieving a savings goal, or reaching a milestone in your investment portfolio, acknowledging progress reinforces your commitment to financial independence.  Enjoy that special restaurant you’ve been wanting to try or make plans to visit one of your “bucket list” locations.  This can serve as a great reminder that wealth is simply a tool toward realizing dreams.

By taking deliberate steps to set and pursue financial goals, you’re not only securing your financial future but also embodying the essence of independence by achieving personal freedom and financial peace of mind. This July 4th, commit to declaring your financial independence; where your dreams are within reach, your retirement is secure, and your legacy is preserved for generations to come.