Investment Planning

This Week in the Market - Episode 72 (3/28/25)

This episode delves into financial topics such as market volatility, private investments, and portfolio diversification. Aaron, Sam, Brent, and Henry discuss current market conditions, inflation, private equity, and debt, offering insights into investment strategies and opportunities in private markets.
Key Takeaways 💡
The market has experienced significant volatility, with short-term interest rates fluctuating and inflation readings showing a month-over-month increase of 0.3%. Despite these numbers, everyday costs for essentials like food and fuel remain high, creating a disconnect between market reactions and public sentiment.
Volatility in the market can present buying opportunities, and hedge funds often benefit from such conditions by accessing diverse asset classes that perform well during turbulence.
Private companies vastly outnumber public ones, with the private market valued at $11 trillion compared to the $88 trillion public market cap. This disparity highlights the growth potential in private markets.
Private equity and debt offer companies alternatives to traditional bank loans, especially as post-2008 regulations have made banks less willing to lend to large companies. Investment firms have stepped in to fill this gap.
Private debt markets are described as less risky than equities, with lenders conducting thorough analyses to ensure loan security. Returns in private debt markets can range from 12-14%, with companies using these funds for growth rather than survival.
Private investments often require a higher level of sophistication or assets due to liquidity challenges and high barriers to entry. Investors must adhere to the company's schedule for accessing funds, aligning their interests with investment managers.
Diversification in portfolio construction is crucial, as different asset classes perform variably, smoothing out overall returns and reducing volatility. Private markets often offer higher yields compared to public markets, but at the cost of liquidity.
Investors should limit illiquid assets to around 5% of their portfolio, aligning investments with their liquidity needs and life planning goals. Longer-term investments can yield better compounding returns.

This Week in the Market - Episode 71 (3/21/25)

Aaron Kennedy is joined by Sam Barker, Brent Bible, and Henry Knowles this week to talk about interest rates, market performance, international investments, and investment strategies. The team provides insights into current market conditions, the importance of diversification, and lessons from past investment decisions.
Key Takeaways 💡
Interest rates are currently inverted, with shorter-term treasuries offering better returns than longer-term ones. Higher rates reduce the present value of future income, and a decrease in rates could improve mortgage payments and economic conditions.
International markets are outperforming US markets this year, with European indices like the FTSE and DAX showing significant gains. International markets also have lower price-to-earnings (PE) ratios, making them more attractive to investors compared to the US market.
The US market's concentration in top-performing stocks, such as Microsoft and Amazon, has led to challenges for diversified portfolios. The top 10 stocks in the S&P 500 are significantly overvalued compared to historical averages.
Fixed income investments, while less exciting than stocks, play a crucial role in portfolios, especially during market downturns. The team emphasizes the importance of recognizing buying opportunities during market dips and maintaining a forward-looking mindset.
Market downturns should be viewed as opportunities rather than threats. The team encourages proactive investment during dips, as these moments can provide a competitive edge and align with the human desire for progress and improvement.
The team reflects on past investment decisions, particularly with FICO, a company with strong financial performance but a high PE ratio. They highlight that high-quality companies can justify higher valuations and express regret for not investing earlier.
FICO's share buyback strategy has increased the value of remaining shares for existing shareholders. The team emphasizes the importance of management's confidence in their company's future, even at high valuations.
The team references Warren Buffett's investment philosophy, which evolved from focusing on undervalued companies to prioritizing quality companies at fair prices. They compare FICO's situation to Amazon's past, where high PE ratios were justified by consistent growth.

This Week in the Market - Episode 70 (3/14/25)

Aaron Kennedy is joined by Sam Barker, Brent Bible, and Henry Knowles this week to talk a little about the markets, interest rates, what they're looking at right now, and more. You don't want to miss this. Do you have questions or suggestions for future episodes? Feel free to reach out to us at: www.kennedy-financial.com.

This Week in the Market - Episode 69 (2/28/25)

Aaron Kennedy is joined by Sam Barker, Brent Bible, and Henry Knowles this week to talk a little about interest rates, international markets, and more. You don't want to miss this. Do you have questions or suggestions for future episodes? Feel free to reach out to us at: www.kennedy-financial.com.

This Week in the Market - Episode 68 (2/21/25)

Sam Barker and Aaron Kennedy join us this week to talk a little about what's going on in the world when it comes to currencies, interest rates, and more. You don't want to miss this. Do you have questions or suggestions for future episodes? Feel free to reach out to us at: www.kennedy-financial.com.

This Week in the Market - Episode 67 (12/13/24)

Sam Barker and Aaron Kennedy join us this week to talk a little about inflation, interest rates, and more. You don't want to miss this. Do you have questions or suggestions for future episodes? Feel free to reach out to us at: www.kennedy-financial.com.

MicroStrategy

Sam Barker joins Aaron Kennedy this week to talk a little bit about interest rates and some Bitcoin strategies. You don't want to miss this.

This Week in the Market - Episode 66 (11/15/24)

Sam Barker and Aaron Kennedy join us this week to bring us a post-election podcast. They touch on government spending, regulations, Bitcoin, oil & gas, and more. You don't want to miss this.

Family Support Checklist (Rebroadcast)

As a life planning firm, it is our mission to help you take the essential steps needed to face each of life’s stages with confidence and clarity. We were asked if we could compile a list of the things that need to be addressed on every level when you find it necessary to assume physical, emotional, and financial responsibility for your parents.

This Week in the Market - Episode 65 (10/4/24)

Sam Barker and Aaron Kennedy join us this week to take a look at what's going on internationally and talk a little about currencies and the job report that came out. You don't want to miss this. If you have questions or comments, you can reach out to us at: www.kennedy-financial.com.

This Week in the Market - Episode 64 (9/27/24)

Aaron Kennedy and Sam Barker give us a brief market update and talk a little bit about AI, energy, the Fed, the economy, and inflation. You don't want to miss this. If you have questions, you can reach out to us on our website: www.kennedy-financial.com.

What's Going On Right Now?

Aaron Kennedy is joined by Matt Ervin and Sam Barker to talk a little bit about what's going on in the markets, economic indicators, stocks, FOMO, and more. You don't want to miss this week's episode. If you have questions/comments or ideas for future episodes, you can reach out to us online at: www.kennedy-financial.com.