August 26,2023

By Andrea Young on August 31, 2023

Where’s Our Head

Our Latest Insights

By Chris Dooley, MBA, CFP®, EA
Senior Wealth Advisor

In case you missed it Dr. Harry Markowitz passed away last month at 95 years old. Markowitz is known as the father of Modern Portfolio Theory and was awarded a Nobel prize in 1990 for his work. Modern Portfolio Theory (MPT) refers to a widely adopted investment theory that allows investors to assemble an asset portfolio that maximizes expected return for a given level of risk. The theory also assumes that all investors make rational decisions with their money. Enter Behavioral Finance; the study of how psychology affects finance.

In the world of investing, emotions run high. This is because money is involved, and money is an emotional subject. Thus, behavioral finance derives from the idea that investors engage in several irrational behavior patterns. Being consciously aware of our own irrational actions in investing is the first step toward becoming a better investor. It allows us to stop and think, practice critical thinking and realize that we might fall into the traps and pitfalls of such thinking fallacies.

To read the full insights, click below.

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Market Notes

Week of August 21, 2023

The Story Is Yields

1. U.S. Economic Growth Is Better-Than-Expected. The latest Atlanta Fed GDP Now model projects +5.8% Q3 GDP expansion, led by manufacturing and consumers. Rather than deceleration and recession, the economy is gaining steam. And while we don’t necessarily expect more than 5.5% growth in Q3, anything above 2.4% represents acceleration from Q2.

The job market continues to be the engine for the economy, as consumers represent 70% of GDP. The U.S. has never had a recession without unemployment rising more than 0.5% and unemployment remains near historic lows, around 3.5%.

Chart 1: Quarterly GDP Growth and Persistently Low Unemployment¹

ISM Manufacturing data, lower CPI (inflation) data, retail trade and housing starts are components that have led to higher Q3 GDP model projections. Manufacturing appears to be bottoming, there’s momentum in construction spending and retail trade is supported by a recovering auto market. Meanwhile, housing starts, building permits and new home sales are leading indicators for future economic strength.

1 Source: FactSet (chart). As of August 20, 2023.

To read the full Market Note, click below.

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Well-thy Conversations

Back-to-School: Talking to Your Children About Money

All parents want the best for their kids. You help with their math, science, or reading assignments in school, and in this presentation, we talk about another equally important subject: financial literacy. Learn some of the introductory topics that may help steer kids and young adults in the right direction as they move steadily forward to a solid financial future.

Enjoy this Webinar replay from Hightower Advisors.

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Where’s Our Heart

Advisor Spotlight

What’s your role at LWM?

I am a Senior Wealth Advisor focused on financial planning. 

How important is overall financial planning with your clients?

The importance of financial planning can’t be overstated. Because financial success differs for each client, a personalized financial plan is crucial. The plan also needs to be flexible because life doesn’t always evolve how we expect.

What is your daily mantra – personally and professionally?

You are no better than anyone else and no one is better than you (John Wooden). Do your best each day and don’t be afraid to laugh at yourself.

Who are your clients?

I’m fortunate to work with clients who understand the value of planning and are just good people.

How do you incorporate the head and heart with your clients? 

When building and implementing a financial plan, we always start with the heart – what are the goals that matter most to the client? Then, we bring in the head to create the plan to achieve those goals.

What is the biggest lesson you have learned in your career?

The importance of teamwork. Whether it’s collaboration with advisors and operations here at LWM or with clients, their attorneys and tax preparers, working together is the best path to success!

What is the most fun you have in your business?

Seeing clients achieve their goals is the most rewarding part of the job, but I also really love spending time with clients and catching up on their lives.

Do you have any hobbies and/or special interests?

When I’m not working with clients at LWM, I’m working with Minute Man Arc to develop new housing models for those with intellectual and developmental disabilities. I’m also chairman of the Miracle League of Massachusetts which provides opportunities for athletes of all abilities to play baseball.

To learn more about Andy Richardt, click HERE.

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Well-th & Wellbeing

It’s a wonderful yet overwhelming milestone: your child taking that next step toward adulthood by heading off to college. Giving them the space to find their own way is an important part of this process. But so too is preparing them to handle the unexpected.

You may be used to stepping in to take charge whenever the need arises, but without the right planning and precautions, you may find yourself unable to help your college student in the midst of a medical emergency. Proactive preparation, beginning with these basic steps, will help protect your child so they can focus on the new academic and social adventures ahead. 

To read the full blog post, click below. 

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Our Latest Empower Women Podcast

Check out our August Empower Women Series Podcast interview, The 5 Pillars of Responsible Decluttering. ,  with Stephanie Seferian. Stephanie outlined the 5 Pillars of Responsible Decluttering, including measuring true value and prioritizing quality over quantity. She also answered questions and talked about where and how to donate the trickiest of household items in an environmentally friendly way.

You can also read our event takeaways by clicking HERE!