Insights by CAM – Page 4 – Insights by CAM

Posted on September 19, 2024

4 Insights from Fund Managers’ Recent Trip to China

At CAM, we believe in the deep dive. And we recommend fund managers who feel the same. We are not talking about excessive or un-necessary risk, but rather the drive and discipline to thoroughly vet investment opportunities. American Funds’ managers recently toured China to explore the investment landscape in the world’s second largest economy. Here is what they learned.

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Posted on September 19, 2024

How do stocks perform after the Fed cuts interest rates? Pretty well, actually.

by J. Eric Rice, CFP(R), ChFC(R)

The stock market has had a nice run in 2024, but investors have been nervous lately, because many are concerned that a slowing economy may tip over into an outright recession. To thwart that possibility, the Federal Reserve stands poised to lower interest rates, providing stimulus to consumers and businesses, some of whom have been reeling despite overall economic growth.

Will lower interest rates be enough to put a floor under the economy and turn things around, or is the Fed’s first interest rate cut the signal for the bottom to fall out of the market? The question plagues many investors, but recent research suggests that they should be optimistic.

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Posted on September 19, 2024

What Is A Black Swan Event?

by J. Eric Rice, CFP(R), ChFC(R)

Black swan populations are small, and it is rare to come across one. The term “Black Swan” has been adopted my financial market participants to mean rare and unpredictable events, typically negative ones. Black swan events may have severe consequences, and can lead to major losses in the markets and harm for the economy.

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Posted on September 18, 2024

The Economic Impact of Higher (and Lower) Rates

by C. Todd Fry, CIMA(R), CFS

Over the last several years, many of our clients who prefer to hold significant amounts of cash for unplanned emergencies or near-term purchases–as we frequently recommend–have benefited greatly from higher interest rates. After many years of ultra-low interest rates, these clients have finally been rewarded with respectable returns on their cash holdings.

Others seeking to purchase a house or car were not so fortunate. For these individuals, borrowing costs often made financing far less attractive and limited buying capacity, given that inflation had already taken a toll on pricing.

Now that the Fed appears poised to begin a rate cutting cycle, we thought it may be interesting to take a brief look at how interest rates affect the economy. As you will see, the impact of interest rates is quite extensive:

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Posted on July 29, 2024

How Elections Move Markets in 5 Charts

by C. Todd Fry, CIMA(R), CFS

How much do elections impact the stock market and portfolio returns? Should elections even matter to long-term investors in the first place? These are the questions investors and financial professionals are facing as we approach November 5.

To provide answers, we’ve analyzed more than 90 years of market and election data and identified five ways that elections influence stock returns and investor behavior.

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Posted on July 29, 2024

Utilizing a Spousal Lifetime Access Trust

by J. Eric Rice, CFP(R), ChFC(R)

Opening a trust fund is a common tool used to preserve and transfer your wealth in estate planning. Trusts can help mitigate estate taxes and help beneficiaries avoid probate court after you pass away, all while ensuring your assets are managed according to your wishes. For married couples, typically those who have a high net worth, a Spousal Limited Access Trust (SLAT) could be an efficient wealth-preserving strategy. These irrevocable trusts allow one spouse to transfer assets such as cash, marketable securities, real estate, and life insurance, to a trust that benefits the other spouse.

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Posted on July 29, 2024

Social Security Online Applications

by J. Eric Rice, CFP(R), ChFC(R)

You can do much of your Social Security business on the website. Our online applications make it easy and convenient to apply for benefits from your computer, tablet, or mobile device. You don’t need to make an appointment or visit an office. That’s independence!

When you start your application online, you’ll be directed to create or sign in to your personal my Social Security account. If you’re unable to create an account, you can continue the online application. We’ll contact you after we review your information.

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Posted on May 23, 2024

Separating AI Hype from Investment Opportunity

by C. Todd Fry, CIMA(R), CFS

The artificial intelligence hype cycle has kicked into hyperdrive.

Newsfeeds bring daily reports of generative AI’s promise to accelerate medical and scientific discovery, drive leaps in productivity and eliminate jobs on a mass scale.

Businesses and individuals have rushed to adopt AI tools. OpenAI, developer of the ChatGPT chatbot, has reported that the tool had 100 million weekly users by the start of 2024, including two million developers and 92% of Fortune 500 companies.

Investor excitement has turbocharged share prices for the most visible enablers of generative AI, including NVIDIA, Meta Platforms and Microsoft, an investor in OpenAI. From 2023 through February 2024, the three tech giants soared 519%, 304% and 77%, respectively.

The question for investors: Has generative AI (GenAI) — which is defined as platforms and tools that can generate new content, including text, images, video and sound — launched a lasting megatrend, or has its potential been greatly exaggerated?

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Posted on May 23, 2024

How to Donate: 7 Tips to Improve your Giving

by J. Eric Rice, CFP(R), ChFC(R)

A recent Fidelity Charitable survey shows that donors to charity share common concerns that hold them back from giving more. Consider these solutions.

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Posted on May 23, 2024