Why We Shouldn’t Try to Predict Stock Prices A friend mentioned the other day that in November 2019, she chatted up a fortune teller who made a spectacular prediction: by the 2020 general election, the US would suffer the greatest economic downturn since the Great Depression. No visions of a dark, handsome stranger for her. The financial industry has always employed economists and investment strategists in the role Read More
Communicating the Unthinkable
A number of years ago I received a mobile call at work from a number I couldn’t recognize. This is how I remember it: “Am I speaking to Maya Tussing?” “Yes.” “This is Fire Battalion Chief Joe Schmoe and I want to tell you first the good news. No one was hurt.” So if that’s the good news, what’s the bad news? I thought about that conversation as I watched markets close to record highs Thursday with the S&P 500 Read More
What is Asset Allocation?
With most markets taking a nose dive, it’s enough to make you run for the hills. Yet you’ve heard a lot of investment professionals tell you to “Stay the course.” But what does “stay the course” actually mean? It refers to maintaining the investment strategy that you put into action before the market crash, assuming it’s the right fit for your circumstances. When someone refers to an investment strategy, they are Read More
What are Asset Classes?
In Lesson One of Asset Allocation, we learned that when investment professionals say “Stay the course”, they mean investors should maintain their investment strategy, which typically refers to the portfolio’s asset allocation or the percentage amounts allotted to certain investment categories in your portfolio. In March 2020 most asset classes lost significant value, some almost 30% and others less than a percentage Read More
What are Your Nonprofit Endowment’s Asset Allocation Tolerance and Timing?
There are two important strategies that drive how and when you rebalance your portfolio. First, the percentage tolerance around your asset class weights and second, the timing of your rebalances. We recommend employing both of these strategies to your portfolio rebalancing in order to establish discipline around what could be an emotional process. Tolerance refers to the amount of drift you’re willing to accept when Read More
5 Questions for the Expert: Cash and Cash Management
In previous posts, we’ve discussed how nonprofits should strive to hold enough cash to take advantage of unexpected opportunities or unplanned losses. To hammer home the point, we asked Aron Chazen, CEO of Treasury Curve, for his perspective about cash reserves. Among Treasury Curve's clients are public sector institutions, looking to manage pools of taxpayer money and other public funds to ensure cash is deployed Read More
VIDEO: 3 Reasons You Should Care About Purchasing Power
Like What You've Seen? Sign up with your email address to receive news and updates. We respect your privacy. Talk to the financial experts at Fairlight Advisors to learn more about managing your nonprofit’s investments. Schedule a free consultation today! Talk to the financial experts at Fairlight Advisors to learn more about managing your nonprofit’s investments. Schedule a free consultation today! Talk to Read More
Citywire USA: Women in Wealth: Building Personal Bonds with Clients
Can You Afford the Zombie Apocalypse?
Debbie, a successful businesswoman, informs her new boyfriend that she keeps a duffel bag with eighty thousand dollars in cash hidden in her closet for an unexpected need. “Might come in handy for the zombie apocalypse,” she adds. This scene from a gripping crime drama I watched the other night made me of think of purchasing power. Let’s set aside the wisdom of leaving cash in a duffel bag and then telling a guy you Read More
ESG Investing: Three Hurdles Every Philanthropic Investor Should Know
Let’s say you binge watch a number of alarming food documentaries one day and decide to explore a brand new diet that could change your life for the better. You’ve always wanted to adopt a healthier lifestyle. It starts well: you’re motivated and better yet, lose weight quickly! But keeping it up proves harder as time goes on. The dishes aren’t as satisfying as your old diet. You’re forced to cook more, which Read More
