The New Capital Journal
Financial news, views, advice, and guidance.
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Economist Lars Christensen Assesses the War in Ukraine and the Potential for a Remarkable Recovery
From nearby Copenhagen, the Danish economist deconstructs Europe’s worst conflict since World War II and the implications for economies and markets now and in the future.
Singled Out: Historical Performance of Individual Stocks
Many investors end up holding large concentrated positions in single stocks, whether as the result of employee compensation or a handsomely rewarded stock selection. This can lead to one of the most well-known cautionary tales in finance: tragic declines in wealth from losses in single securities.
The Market Just Turned An important Corner
There are a few big reasons why the market may now be ready to find its footing.
Dimensional 2022 Matrix Book
Dimensional’s annual survey of investment performance draws on historical data to look beyond short-term market fluctuations and shed light on the dimensions that explain differences in returns.
Is Cryptocurrency Really a Portfolio Diversifier?
Cryptocurrency has a low correlation with traditional asset classes, but correlations often spike during down markets.
3 Trends Shaping Philanthropy in 2022
The world seems to be in a constant state of “unprecedented,” and the philanthropic sector is no different. Three key themes surface in this year’s Giving Report.
Surprisingly Benign: How Stocks Respond to Hikes in Fed Funds Rate
Some investors may worry that rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance. However, historically, equity returns in the US have been positive on average following hikes in the fed funds rate.
How Aggressive Will the Federal Reserve (Fed) Tighten Monetary Policy?
We expect 0.50% increases at the June and July meeting, and for further 0.25% increases thereafter, suggesting a year end Fed funds target range of 2.50-2.75%.
Central Banks Have A Short Runway For A Soft Landing
Three factors will determine whether central banks can navigate a soft landing of continued growth with prices rising at acceptable levels, or whether they miss an uncomfortably short runway.
The Resilience of Markets Through Dark Times
With the conflict in Ukraine, we may still see more volatility and fear impact markets, but in terms of investor portfolios, the message is perhaps bland, but comfortingly so. Stay the course with a diversified portfolio and keep a long-term perspective, however difficult that may be.
Are You Approaching Medicare Enrollment Age (Or Already Enrolled) and Have Questions or Need Some Guidance?
New Capital has partnered with Medicare BackOffice to help clients navigate Medicare.
The SEC's Proposed Climate-Risk Rule Helps All Investors
The proposed rule would help public companies come to terms with their climate-related risks and focus their attention on how they are going to manage them.
Don't Get Hooked By These Financial Scams
Learn the best ways to safeguard your personal information—and your money.
Should You Chase Dividend Stocks to Combat Inflation and Rate Hikes?
There’s no strong evidence that dividend stocks have delivered superior inflation-adjusted performance during periods of high inflation or rising interest rates.
What Are The Opportunities In Sustainable Transportation?
Investors ought to think beyond just EVs to the ecosystem around them for opportunities. This includes batteries, EV chargers, and electrification of the energy grid.
Are You Satisfied With Your 401(k) Plan?
New Capital now offers Guideline’s 401(k) plans to clients for their businesses.
A Welcome End to a Low-Rate Era
Vanguard has emphasized for months that markets have underestimated just how high the Federal Reserve might need to raise its key interest rate target to quell inflation.
Just How Hot Is The Labor Market?
The March employment report contained a host of figures pointing to the strength of the U.S. labor market.
Cybersecurity: A Growing Risk
The threat of Russian cyberattacks highlights vulnerabilities across industries.
How to Give to Charity with your Equity Awards in a tax-smart way
If you receive equity awards as part of your compensation, there’s a strategy you can use year-round that can potentially minimize your taxes from a high-income year, reduce overconcentration of company stock in your portfolio, and, best of all, give back to the causes that matter most to you.