I’ve assembled notes and thoughts on SEVERAL topics of interest in these current days.  As always, thanks for tuning in.

There continues to be a “buzz” in this industry about Fiduciary responsibility. . .Looking out for a client’s best interest.  We are currently on the cusp of industry regulations that require, believe it or not, a Financial Advisor to act in the client’s best interest.  It is very interesting to me that there are deemed to be some circumstances where a Financial Advisor can conduct business with and for a client and is not necessarily required to have the client’s best interest at heart? Go figure.  Our government agencies are going to continue to “legislate” that advisors work for the client’s best interest.

The only way I know how to address this is by saying:  I’ve not ever known any other way.  I have believed for over 25 years in this business that there is no other way to live and act than in keeping a client’s goals and best interests at heart in all that we do.  Fiduciary should be an attitude and automatic.  Crazy that it has to be a law, but I have witnessed reasons why.

Not much more to say on that, but it seems to be getting media attention of late.

Next. . . and less important. . . is that now with many years in this business, I have seen love affairs with dot-coms, real estate, crypto currency, tech stocks, electric vehicles, oil, master-limited partnerships, fintech, and now A I.   In each of these eras, the CONCEPT was here to stay. However, the stock market euphoria was exactly that and eventually the related stocks came back down to earth.  Euphoria is euphoria.  Earnings eventually have to become a thing and typically take some time to come around.  As these stocks related to A I have leveled off a bit lately, in our opinion, this might not be the end of that “run”.  However, the exhale will come eventually.  We’re enjoying watching the run. . .

And if this time is different, it’s okay.  We continue to have a positive outlook on A I investments but we are also cognizant of the relevant risks.

We are still always looking for QUALITY and VALUE in how we invest.  Nothing beats reliable earnings and track record. . .sooner or later.

On interest rates: There seems to be a broader realization that the Federal Reserve may not be lowering rates quite as soon as the markets were thinking.  As I read in a Raymond James report of recent, the unemployment rate has remained at or below 4% for 26 consecutive months – a record last seen in the late 1960s.  And consumers at the high and low end of the income spectrum are still spending.  Interest rates hit their highs last year and have come down solidly, but now we are in the no-man’s land of being data-driven the rest of the way.  I personally still believe that there is a lag in the adjustment from such a dramatic upward move in rates. . .and that we will continue to see slow a down on some levels.  Still difficult to tell whether a recession can truly be avoided – or is it mild vs deep.

From time to time, the topic of intra-family or friend loans comes up. Here is an article I found relevant. I am not endorsing or recommending anything here, but thought the link was worth sharing.

Circling back to AI, I don’t know if this link to a good Wall Street Journal article works without a subscription, but here is a good guidance article for anyone wondering about getting started using artificial intelligence in any way.

A BEGINNER’S GUIDE TO USING AI: YOUR FIRST 10 HOURS 

Interesting. . or not:  Some data I recently read in an MFS report:  Microsoft and Alphabet (Google), between the two of them, have acquired over 500 companies since 1996.  And the number of public companies has declined in that time frame over 40%. . .from a peak of around 8000 in 1996 to just over 4600 in 2022.  The main culprit is/was acquisitions, but I speculate that also in the decline are companies that went under. . .

That’s what I can come up with in mid May.  Reach out anytime for more conversations – I enjoy all of them.

Key