Song: "Pink Bullets" by The Shins One of the more languid tracks from the fantastic album Chutes Too Narrow, an album that changed my life (yes, that's a film quote reference) when I picked it up in Tower Records. As usual with songs from The Shins, the lyrics are top notch. I thought of this song today when coming back to my blog after two and a half years - where did that time go? Here's to more listening, reading, and writing in 2024. Financial: Time and Investing Every once in a while, clients will ask me "How did the market do today?". Setting aside the lack of detail in that question (they usually mean how did the Dow Jones average perform, which ignores a fair amount of the world of investments), I'll usually reply that I haven't looked. That's pretty shocking to some people, but it speaks to what we think is the inherent nature of investing - short term is noise, long term is what matters. That's not to say that we bury our head in the sand or don't keep an eye on the movements for investment or tax planning. It does mean that we're much less worried about the day-to-day and more focused on the long-term - and studies show that's a good thing.
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Song: "Changes" by David Bowie I was never really into David Bowie, and I'd still consider myself more of a "greatest hits fan" than a true aficionado. But these lyrics really speak to me, and it's one of his most famous songs for good reason. The music isn't bad either - listen to the walk up in the bridge, and the sweet sweet saxophone outro. Look out, you rock and rollers! Financial: Rebalancing What is rebalancing? The act of changing the investments in your account to be in balance. A simple example is a target allocation of 50% stocks and 50% bonds. If stocks do well, you might wind up with 55% stocks and 45% bonds, so you'd sell off 5% stocks and purchase bonds with the proceeds. Over time, studies have shown that on a risk-adjusted scale you do better with regular rebalancing. There are different opinions as to how often to rebalance, but 2-3 times per year is a good rule of thumb (and you don't want to be doing it all the time). Some sites or programs can do automatic rebalancing, which can be great for some investors. Either way, making changes is generally a good thing in the world of investments. Song: "You Get What You Deserve" by Big Star There are a few different versions of this song, but they're all as biting and acerbic as the man who wrote it - the brilliantly creative Alex Chilton. Big Star never really "made it" when they were actively recording in the Seventies, but since then they've developed a cult following and have been hugely influential for many, many other bands. In a live recording, Chilton once remarked that his younger days with the band The Box Tops were "pretty scummy... about as scummy as now." That tells you a lot about his outlook on the music industry and the world in general. Financial: Resiliency This Big Star song came to mind as I was thinking about all of the craziness of this year. In particular, the line "For some of us it's not a good time, but you're going to get used to [it] and you better resign yourself..." really hit home. I am not suggesting that we're getting what we deserve - but rather that it's not a good time for anyone right now, but people are getting used to it and resigning ourselves to the current situation. That resiliency has been at the core of our country for a long time, and investors over the past one hundred years or more have adapted to very serious events and problems and we will get through this, too. Hang in there! Like any good blog, I'll be posting best-of lists every once in a while. This month's list is a special category - albums where I enjoy every song. That's not as easy as it sounds, since there are records that would be perfect except for that one or two songs that I just don't enjoy (the last song on the Postal Service album comes to mind). So with that said, here are my five fully enjoyable albums:
Aqualung - Memory Man Beach Boys - Pet Sounds Ozma - Rock and Roll Part 3 Radiohead - In Rainbows Starflyer 59 - Leave Here A Stranger Five very different bands, but the common thread is that I think these albums are the culmination of their recording careers (at least so far). So if you haven't heard some or all of these, give them a listen! Song: "Madness" by Lucius It's hard to pick my favorite song from the Good Grief album, but this one is certainly a contender. If you haven't heard of Lucius, their two lead singers are incredible and have backed up Roger Waters, Jeff Tweedy, and Sheryl Crow, among others. But it's their songwriting that really grabs me, and "Madness" is a great example of the wordplay and picturesque lyrics that fill this album. Give it a listen, and be sure to watch videos of their live shows as well. Financial: Spinning I constantly hear from clients that they are worried about the current environment, whether political or financial. There's plenty of reason for concern everywhere you look, and we don't advocate sticking your head in the sand and just ignoring the madness. At the same time, there's a wonderful chart that shows the long-term stock market return overlaid with the major events in history. It's a great reminder that the market has survived many wars, many crashes, and a lot of political turmoil, and still managed to reward investors who take a long-term view. Songs: "You've Hide Your Love Away" by The Beatles; "Hide Your Love Away" by Red Letter Agent It was only a matter of time before I picked a Beatles tune, right? But this isn't exactly one of my favorites - I'll write about those in a future post. I just happened to be listening to Red Letter Agent (very talented band - check them out) and realized how similar the song titles are, though they are completely different songs. It led me to think that there are many, many ways to write a great tune with just the one theme of hiding love away. And think about the myriad of songwriting themes that are available! The possibilities are endless. Financial: Different Ways If you're familiar at all with financial services, you've heard and seen vigorous debates about the best types of investments. Active versus passive and mutual funds versus ETFs are just two of the arguments that are still ongoing. Although the company I work for has their own investment philosophy - one that I firmly believe in - I'm also convinced that there are many ways to save for retirement, invest, and reach your goals. The key is to have a financial plan that details where you're going and how to get there. All of the finer details can be ironed out, but start with a great plan. Song: "Morning Paper" by Quruli (くるり)
I first heard Quruli many years ago in a store in Los Angeles. I don't speak Japanese to any great degree and couldn't understand the lyrics, but the music was striking and creative. That album was The World is Mine, which many - including myself - consider to be the band's masterpiece. However, their next two albums are a little more accessible for English speakers. "Morning Paper" is a rocker from Antenna and a good introduction to the band's style, but also check out "Nijiiro No Tenshi" ("Rainbow-Colored Angel") from the Nikki album. Quruli's instrumentation is top-notch, and Masashi Sato is one of my bass heroes. Financial: International Studies have shown that many investors have a home country bias, especially in the US. But even if you own shares in some of the global multi-national companies based in America, you're still missing out on a huge swath of investments around the world. We think it's important to diversify not just domestic holdings, but to also own international funds which buy large and small companies in developed and emerging markets. As I'm writing this post, international economies and investments have been trailing the United States, and it appears that will continue for some time. But no trend lasts forever! Song: "Anonanimal" by Andrew Bird Yes...whistling is Andrew's signature sound, and his last name is really Bird. But please quickly move past the novelty of that, because he's also an amazing multi-instrumentalist singer-songwriter who uses looping to write and sometimes in live shows. "Anonanimal" is full of his excellent violin work, and listen to the percussion by Bird's friend Martin Dosh (also a very talented looper). Financial: Adapt Lately I've met with several women who have lost their spouses, and are now trying to find their way forward. Finances are usually a big part of that, and I have been so impressed by these women as they work to adapt to their new reality. For anyone in that situation or if you are helping a loved one through it, remember that is very acceptable to have it be a slow process. From a practical standpoint, financial matters after a death can usually be postponed and you should not be in a rush to get everything done. Putting off key decisions until you are in a better state of mind is often the best thing to do. Song: "Born at the Right Time" by Paul Simon Do I really need to comment on how great Paul Simon is? I was obsessed with this song (and the rest of The Rhythm of the Saints album) a few years ago, and it's still one of my favorites. I always say if I can ever write a song as half as good as Paul, I'll be doing very well. Financial: Right Time There are a number of very popular stock market prophets who will gladly tell you when to buy and sell. They have correctly called every recession and market drop - according to them - and will gladly share this prescient information with you...for a price! Because of the prevalence of this type of "advice", I think sometimes it's a little shocking for someone to walk into our office and hear that we don't believe anyone can consistently predict what's going to happen in the financial markets. In fact, our advice is often the opposite - don't try to predict the right time to buy or sell. Instead, ignore the noise, focus on purchasing the right investments for your situation, and hold them for a long time. Song: "Ashes and Wine" by A Fine Frenzy Before acting in the Fantastic Beasts films, Alison Sudol recorded great several albums as A Fine Frenzy. Her voice can go from sweet to soaring to haunting, and that range is really on display in this song. Worth a listen. Financial: Chance Sometimes people will comment about "rolling the dice" in the stock market, or "playing roulette" with their investment funds. I understand it can often feel that way. In the short term, the market bounces up and down for seemingly no reason, with market timers all trying to hit the elusive jackpot. However, buying stocks is actually purchasing very small pieces of ownership in real companies creating real products and services. It can help to think like a business owner, where over many years you expect the company to grow and your stake to increase in value. Think long term - you're buying companies, not poker chips in a casino. |
AuthorRussell Hall is a fee-only financial advisor in Orange County, California. Archives
January 2024
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