AWM Insights Financial and Investment News

As a pro athlete or successful businessperson, you have heard this statement a thousand times, “control what you can control.” Why? It’s because every fiber of our being wants to react to the “noise” good or bad. We are easily caught up in the emotion of an event or views of the crowds. This is where the pros are separated from the amateurs. The amateur reacts to what’s happening outside of themse...

The S&P 500 is down ~23% year-to-date which has felt like an exhausting marathon. Would you believe us that the -23% return has been created by only nine days? There are 254 trading days in a market year.  It’s a silly exercise but if you had the ability to avoid those nine days, you'd actually be up 9% year to date in the S&P 500.  Unfortunately, these were not nine consecutive days. And...

In business and sports, everyone dreams of the payoff. A company that sells for billions and an athlete that signs the big contract. Yet, every owner and athlete who has achieved this will tell you the sacrifice and resiliency it takes to survive the gauntlet of the journey. 1,982% cumulative return over 30 years.  9.2% annual return $1 invested grows to $20.82 We all want the payoff. Few will do...

We have recently hit 2-year lows on many indexes, and if you have tuned into any financial news offerings lately, you would believe that the worst is yet to come. More interest rate hikes are on the horizon, greater uncertainty remains from the war in Ukraine, and energy prices that continue to rise are leading many pundits and analysts to predict an imminent recession. Are they right, and what sh...

Markets are crazy right now. The S&P 500 was down over 9% for September alone. Interest rates have been marching higher. What does this mean for you and your money? Everyone goes through challenging periods of time whether that's in sports or business. Investing is no different. It is perfectly normal in times like these to be unnerved by market drops and the possibility of a looming recession...

Rising interest rates have dominated headlines for the last few months, but which rate is the most important to you? Should you be concerned?    The rate you’ve likely heard the most about is the Fed Funds rate. In short, this is the interest rate that banks charge each other if they need to borrow or lend in excess of their reserves. This rate is set by the Federal Reserve and is the main policy...

It is estimated that 70% of wealth is lost by the second generation and 90% by the third. This is what defines the phrase “shirtsleeves to shirtsleeves” and it has been this way for centuries and across cultures. What can be done about it?  You have to start by being intentional and focusing on solving the problem for your family. Begin by thinking big picture and spending time and resources to se...

Money is just a tool to drive impact. What that impact looks like is different to every individual and family. The anxiety of preparing the next generation is universal across wealthy families. Building the mindset to raise kids well and not spoiling them while giving them the foundation to live productive lives is the cornerstone of generational success.  How do you measure success when you’re gi...

It only takes one unfortunate event to bring down everything. That is why risk management is such an important part of protecting your financial structure and sustaining generational wealth. It is not generally given the attention it deserves. Risk management is more than just insurance. It is protecting against an uncertain future. This includes physical as well as online security. Families shoul...

Where do you start when building an investment plan? What are the first steps and what’s most important? Should we maximize returns and let our investments run our lives or should we let our needs, wants, and wishes drive how we invest? Where do taxes fit in? You have only one net worth and one effective tax rate. Thinking about your investments separate from taxes is never optimal. You will end u...

Tax planning is the backbone of the family office. A tax team focused on minimizing your taxes is a must-have for families to optimally grow wealth and then sustain it multi-generationally. These opportunities are often missed because most Americans invest money only in their company 401k or an IRA. But for anyone high net worth, taxes are the biggest cost to control. The highest tax brackets also...

Family office is the buzzword in the industry these days. The problem is not everyone is staying true to what a family office does and many are not keeping clients at the center of what’s important. Anyone with sports or business experience understands the value of the team. The integration, independence, and individualization of you advisory team provides you the opportunity to maximize your weal...

How do you establish a family legacy that transfers to the next generation? This is the most difficult task ultra-high net worth families will face. Of course, technical expertise is important when creating a legacy that will last generations, but the next generation must be prepared to steward wealth. Waiting until it’s too late is the worst thing you can do as a wealthy family.   If transferring...

You should be investing, but that doesn't mean you have to settle for a poor investing experience. The broker selling you the next hot stock or Jim Cramer telling you to “buy, buy, buy” will not deliver the good experience nor the optimal returns you deserve. Too many investors hear about the newest hot stock on the golf course or in the locker room. They then go out and buy it. This is the worst...

Recessions, high inflation, or all-time market highs are usually the only times investment news makes its way into mainstream media. Financial news is really incentivized to instill fear or greed and is only entertainment at the end of the day. Ignoring this noise is paramount to a better investing experience and zooming out to the big picture can help keep market adversity in proper perspective. ...

“Don’t put your eggs all in one basket”   Everyone has heard this saying but are you doing it as efficiently as possible with your investments? Don’t fall in love with one single investment category because this overconcentration is an unnecessary risk.    Intelligent diversification is implemented across countries (ex: US, Developed International, Emerging Markets), asset classes (ex: stocks, bon...

Investing in index funds or ETFs is a great place to start, but can you do better?   There are segments of the stock market that have proven over time to deliver better results than the averages. This is backed by almost one hundred years of data and research across time periods and found in markets globally.   Exposure to these parts of the market, known as factors, in a cost-effective way can pr...

Results are what matter at the end of the day. We want to play the game that gets us the best results. The evidence presented in the last several podcasts has made it clear what you should focus on as an investor if you want the best results.   Average returns in capital markets have produced phenomenal results. Allowing the market to work for you in the long term can generate shocking results.   ...

Can you trade on the market inefficiencies and come out ahead after costs and taxes?   The evidence is clear and it isn’t good news for the market timers. These market timers are investors and advisors that promise to get out at the top and then get back in at the bottom. It sounds great in theory, but because the public markets are so efficient, the evidence is clear that it isn’t possible over t...

It seems natural that the most skilled and talented managers should be able to outperform on a consistent basis. In reality, the data doesn’t support this and it actually shows the opposite. In public markets, persistence, or the ability of the best to stay the best, just isn’t shown in the evidence .  If the fund managers with all their large payrolls, research, and connections can’t reliably out...

When markets are down, it is natural to be concerned. Who determines these big moves in the market and what information can we learn from them?   Every transaction in the public market needs a buyer and seller. The transaction they make is reported and publicly available to access.   The market these buyers and sellers compete in is an extremely competitive and highly efficient marketplace. New in...

In last week’s episode, Brandon and Justin started the discussion on real estate investing – hitting on topics like where and how to invest, public vs private, and types of properties. With the foundation now laid out, they dive deeper this week into how to actually go about investing and assessing whether you’re getting the returns you deserve. They continue their conversation by focusing on priv...

Real estate is a popular asset class and a huge wealth builder for many people. What are some ideal ways to approach investing in real estate? What can you expect for returns and what are the risks?  If you are directly buying properties and expect mailbox money without any work, you are in for an unpleasant surprise. A common misconception in real estate is the idea of this passive income. Howeve...

Investing in private equity (PE) boils down to buying ownership in non-publicly traded companies. Venture capital is just a small subset of private equity and sometimes the lines can be blurred between the two. Within Private Equity, there are multiple niche areas where the PE funds and managers put their focus. Private equity also deals with more mature or later-stage companies than venture capit...

There are around 2,000 venture capital firms managing about 4,000 funds. It’s a small market in the grand scheme, but many aren’t worth investing in. The return difference between the top 25% and bottom 25% is staggering.  This is a game of professionals. It’s no different than elite athletes competing at the highest level in professional sports. The same separation of talent exists in the venture...