Like all industries, there is a pecking order in the investment arena, a hierarchy, if you will. At the top of the financial pyramid are the hedge fund and private equity businesses. At the base of the pyramid is the bank teller. While often grouped together, the hedge fund and private equity businesses are very different since hedge funds normally trade in listed securities that are available to... Source ..read more

Traditional investment advice normally focuses on allocation into buckets. These buckets could be traditional mutual funds, or ETFs, or managed accounts holding individual stocks. In most cases, the allocation buckets are tactically rearranged, and the securities within mutual funds and managed accounts are also actively rearranged. Considering that studies like the SPIVA Report from Standard & Source ..read more

We get puzzled looks from new clients when we explain our position on taxable fixed income (bonds) in IRAs. Traditional planning advice recommends placing your highest growth assets in an IRA to maximize the tax deferral. We usually recommend the complete opposite approach, which becomes more and more preferable the higher the income of the current or future retiree. Source ..read more

We occasionally see portfolios come in for review containing structured notes. There are a wide variety of them, so I will speak generally. Not everything I will say applies to all, but likely most. A structured note is a bond from a brokerage firm or sponsor which represents an underlying derivative. Most often, this derivative is a set of option contracts. The underlying derivative is what sets... Source ..read more

I’m a cynic when it comes to the nature of humans but an optimist when it comes to the nature of markets. To be a pessimist, I would have to believe that markets are somehow doomed or that people are irredeemable. Neither is true. And when I speak of being a human nature cynic, rest assured I’m putting myself in the same category. I’m not judging people from some lofty height; I’m in the muck with... Source ..read more

From Financial Advisor to Published Author: Gil Baumgarten’s Multi-Faceted Success Our very own Gil Baumgarten was featured on CIO View’s May 2023 cover as an “Influential Finance Executive to Watch in 2023.” Gil shares the journey of his career, how to navigate the tax code, and his future plans for Segment Wealth Management. Source ..read more

The impending recession that the bumbling federal reserve seems intent on creating will present some risks and some opportunities. While they signal that they may be finished with hiking rates, current employment numbers are still too high, and the Fed will hike until they break something. One could argue that the first cracks are showing in the banking business. Source ..read more

Economist Paul Samuelson famously quipped that “the stock market has predicted nine of the past five recessions.” This tongue-in-cheek expression reflected his view of jumpy stock investors’ impact on the market, who pile in and out, often letting fear win out over fact. Current tea leaf readings might have one conclude that a recession is imminent, and that may be true. The bond market gives... Source ..read more

We all know that market timing doesn’t work. It is a fool’s errand to sell it all, hoping to buy it back lower. But the temptation to do so is heady when the market is in decline. When the near future looks scary, it’s easy to think that perhaps selling now and buying back later is a good idea this time. Fear encourages self-justifying arguments for bad decisions by wrapping them in something else. Source ..read more

Just in time for Tax Day 2023, Gil talks tax strategy with the Houston Business Journal. “With tax season upon us, it seems an appropriate time to discuss tax strategy with a local specialist. Investors might assume that the frontline professionals for advanced tax strategy are CPAs. However, some investors find that their CPAs work retroactively, focusing on preparing tax returns more than... Source ..read more