Often times in this business, firms and individuals spend an incredible amount of time and resources trying to sell and market to prospects. And completely overlooked is the actual research: the foundation of a thesis and the guideposts to build a portfolio. This isn’t to say that nobody does the heavy lifting in this industry, but more and more often, we see "really smart people” with “complex portfolios” who, at the end of the day, are simply passive investing. In other words, they are tracking an index. Whether it booms or busts. Ignoring the future prospects.
Avoiding The Lowest Expected Investment Returns In 100 Years
If you are like most people, you have 75% or more of your stock market investment in US equities[1]. The truth is, it’s not just the lay investors that are subject to this “home country bias.” Most financial advisors and money managers are equally prone to this bias. With the US accounting for only around 50% of global output and at historically high prices, a diversified portfolio should consist of a much greater allocation to foreign stocks.
The Messy, Perilous Journey: Why You Must Read "Shoe Dog"
I’ve long been of the opinion that emotional intelligence (EQ) is one of the hardest skills to acquire. But with it, it’s a heck of a lot easier to admit what you don’t know. And ask for help. And seek out mentors, advisors, and people smarter than yourself. To share your dream with others and then trust they can help you figure out how to execute it. Phil Knight’s EQ is on full display throughout the founding of Nike and in his candor retelling the story some 50+ years later.
Q4 Commentary: Finances & the Fear of Missing Out
A business' intrinsic value fluctuates very little. Yet, the price that the ever-moody "Mr. Market" will pay at any given time can fluctuate dramatically based on outside economic and political forces.
At Pilot Wealth, we feel no need to explain it, no need to tell a story. Instead, we recognize volatility happens and we welcome it.
Register Now: 2016 Economic and Leadership Summit
From workforce and employee engagement issues to changing technology to the skyrocketing real estate market, business leaders face an ever-shifting array of challenges and opportunities today. Constant awareness and evolution are vital to staying ahead of the curve and continually gaining momentum.
Please join us for the fifth annual Leadership and Economic Summit on November 29, 2016 at the Multnomah Athletic Club. We've gathered some of the region's most successful business leaders to share how they're approaching today's challenges, offer insight on their success, and discuss what's ahead in 2017.
Q3 Commentary: Inflation, Rising Interest Rates and What To Do About It
For the last 7 years the vast majority of economists and analysts alike have incorrectly forecasted rising interest rates and the possibility of rampant, out of control inflation. Recently, however, these same soothsayers have flip-flopped and said that they now believe that interest rates will likely stay lower for longer.
Chart of the Week: Sideways Markets
Getting Out of Our Own Way
What Galloping Gertie Can Teach Us About Investing
For those that have grown up in the Pacific Northwest, the story of the most famous suspension bridge to be built, and subsequently destroyed, in our own backyard is well known. For the rest of the world the Tacoma Narrows Bridge, more commonly known as Galloping Gertie, is no more than a footnote on a study of failure analysis for a university level structural engineering class.
Along with the sinking of the Titanic, the Tacoma Narrows bridge collapse was a sobering reminder of the devastating cost of hubris.
Riding the Rollercoaster Without Losing Your Mind: How to Prepare for the Next Market Downturn
If you have been following the financial headlines of late you may have noticed a consistent theme around the ills of over stimulated markets. Every day we go deeper into this historic market run up the warnings become more pronounced. Even to the seasoned investor, the current state defies conventional logic.
Chart of the Week: The Mastery Gap
Taking the discussion further from two weeks ago on the Conscious Competence Learning Model, Rick explains where many leaders fail to leverage the learning from the model to apply it to their leadership and organizations. Listen to this week's Chart of the Week to learn where the Mastery Gap is and understand how you can challenge yourself in your leadership.
Chart of the Week: The Price of Oil - Winners and Losers
Almost everyone is feeling good about the prices at the gas pump these days, reflective of the price of oil that has dropped precipitously over the last few months. Who wins and who loses, however, is worthy of discussion and in this weeks' installment of the Chart of the Week, Nick walks us through who is on which side of the equation.
2014 Leadership & Economic Summit
Every business leader today, no matter the industry, faces the challenge of keeping up with advancing technology trends while staying competitive in a shifting economy. Here in Oregon, where the pioneering spirit still prevails, the thriving sectors of food, healthcare, and technology are leading the way.
The 2014 Leadership & Economic Summit will feature a keynote address from economist John Mitchell, followed by a panel discussion with business leaders from three very different industries all of whom are challenging and disrupting their markets in profound and original ways. Listen in as Dave Sanders of ZoomCare, Frank Helle of Axian Software, and Jeff Harvey of Burgerville discuss the challenges and opportunities that come with embracing unique business models to create success in today's consumer-driven markets.
Chart of the Week: The Benefits of Asymmetric Risk
The information in this video is intended for residents of the United States and is not intended to be personalized nor is it a recommendation to buy or sell securities. Pilot Wealth Management is a Registered Investment Advisor, licensed with the State of Oregon and will ensure proper licensing or exemption from licensing before conducting business in any other state.
Chart of the Week: The Meat and Potatoes of Inflation
In an ode to Portlandia this week, Nick and Rick discuss food and in particular, the increase in food costs that have clearly outpaced wage growth this year. What does this mean to overall demand in the economy and is it a portend of broader inflation and interest rates? Listen to the discussion and determine for yourself what the implications are of the price of that free range, all natural chicken you just bought at the grocer.
Chart of the Week: Small Cap Underperformance
Chart of the Week: Corporate Profits - Why Do We Care
Chart of the Week: YTD Bond Returns - The Perils of Prediction
Rarely is our attention captured by a short term chart, however, in the following from Bloomberg it illustrates the significant appreciation in long term Treasury bonds since the beginning of the year. Not only was this unanticipated, but the opposite was the prediction from most experts. Validity of predictions aside, it does beg the question what should be done with positions that are long on bonds? Listen to the following discussion and hear what Pilot's Portfolio Manager, Nick Fisher, has to say.
5/20/14 Chart of the Week: Not All Markets Are Overvalued
If valuations actually matter anymore, and the U.S. is in fact overvalued - then what do we want to buy? This week we look at cyclically adjusted price-to-earnings ratios (CAPE) of other foreign markets and the returns that they generate. Fittingly, we also discuss the difference between risk, volatility, and the permanent loss of capital.
5/13/14 Chart of the Week: Cov-lite and Why We're Lightening Up
Cov-lite lending and commercial loans have grown quite a bit in the last couple of years. This week, we discuss what covenant light commercial loans are, how they are made, and how the risk is mitigated by lenders. All of this of course informs our risk vs. return assumptions and the evolution of our fixed income allocations.