Key insights for financial advisors on reading financial statements, valuation, macro signals and running an advisory practice.
Discounted cash flow is a valuation method that prices an asset at what its expected future cash is worth today, marked down for time and risk. There's nothing wrong with...
Read the articleRetirement income planning has two layers. One is the rules, which you can look up. The other is the return, which the portfolio has to earn, holding by holding.
Read the articleSay a client owns a stock that fell 9% on a quarter that beat, and they want to know why. You've got the 10-Q in one tab, the earnings call...
Read the articleTwo days before the Federal Open Market Committee meets, you're writing the firm's quarterly client letter. You need something useful to say about the meeting without guessing what the committee...
Read the articleA client is reading Yahoo Finance and sees a downgrade headline that makes them nervous. Their main question is if the bond fund still belongs in their portfolio. The first...
Read the articleGrowing an advisory practice is mostly a time problem and a differentiation problem. Advisors who grow protect their prospecting hours, and they give clients a reason to repeat their name.
Read the articleFinancial statement analysis checks whether a business earns what its statements say it does. For an advisor, most of the job is comparing one company against another and against its...
Read the articleStock research is based on a fixed order of questions. Researchers generally clean the numbers first. Next, they decide if the business is any good. Then they look at the...
Read the articleThere are four signal families in asset allocation. In weight order, they are credit conditions, earnings growth, momentum and sentiment, and valuation. Valens Research's Market Phase Cycle framework weights them...
Read the articleA dividend stock is worth owning when cash flow durably covers the dividend. The yield doesn't settle that. Neither does the reported payout ratio.
Read the articleThe great wealth transfer is the largest asset movement in history. Cerulli projects $124 trillion changing hands through 2048, and most advisory practices will lose their share of it by...
Read the articleEarnings quality is how cash-backed and repeatable a company's reported profit is. You use it to decide if the "E" in P/E is usable. Low earnings quality can inflate or...
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