chatham

Peapack Private Wealth Insights

October 20, 2015

Given today’s market volatility, investors are craving the equivalent of a market security blanket.  The last thing investors want to entertain is the idea of adding small-cap stocks to their portfolio.  However, as with all investment sectors, small-cap stocks can contribute to enhanced ...

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As of the end of last year, the typical new retiree had stashed away a bit less than $150,000 in employer-sponsored retirement accounts and IRAs. That’s a problem—those dollars won’t fund a lot of retirement spending.   At the high end of the spectrum, some retirees have a different problem, ...

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If we all had a crystal ball and were able to see what the future holds, buying and selling stocks would be easy. However, until time travel becomes a reality, the future will always remain uncertain. We often get the question from clients “when is the right time to sell a stock?” In theory, ...

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US stock markets are now negative after the first eight months of the year, and volatility is increasing.   The uncertainty of potential Federal Reserve rate increases is injecting caution in the market. The concern is valid:  The Federal Reserve engineered our economy’s recovery from the worst ...

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You’ve seen the statistics. Ten thousand (10,000) Baby Boomers a day are signing up for Social Security. Most of them have got it wrong -- they’re claiming too young, they’re not taking advantage of all their options, and they’re not adequately protecting their families.  You can do better; these ...

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Municipal bonds have long provided a tax-advantaged investment option for those in higher tax brackets.  Their exemption from federal, and often state and local taxes, makes them attractive on a taxable equivalent basis to other fixed income options.  However, municipal bonds can be used by ...

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The topic of rising interest rates has consumed the financial media. We do know the Federal Reserve has ended its easing policy and that an increase in the Federal funds rate will follow as soon as economic growth and the job market are on solid ground.  Predictions on timing keep getting pushed ...

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Concerns of a Greece banking failure and an exit from the European Union have dominated the news headlines once again, and have helped take the global financial markets on a roller coaster ride. Prior to a few weeks ago, news out of Greece had been quiet. The European Union (EU), Greek ...

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It’s no coincidence that our stock market has more than tripled in the last six years, since our Federal Reserve depressed interest rates to near zero in late 2008.   The pessimists fear the party is over, now that Janet Yellen and the Federal Reserve have ended the aggressive bond buying to reduce ...

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Warren Buffett has always preached to invest in companies you understand. Over the past fifty years, the Oracle of Omaha has built a portfolio of companies involved in everything from making underwear (Fruit of the Loom), to selling insurance (GEICO), to owning and operating railroads (Burlington ...

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Over the last year the Dollar has appreciated nearly 22% versus the world’s currencies.  With forecasts for continuing Dollar strength, what’s the next move for investors? Bottom Line US currency strength is providing a tail wind for our financial markets. Investors worldwide are rushing to ...

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A financial product that allows you to participate in the stock market’s upside, promises you won’t lose money, and gives you income for life—it sounds too good to be true.  In most cases, it is.  The equity indexed annuity promises just that—along with returns based on the stock market.  As a ...

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What role do bonds play in a portfolio?  The answer varies from one investor to the next but for most investors, they diversify and offset equity volatility.   Bonds, especially high quality ones, generally do not move in sync with equities. During a bear market for stocks, bonds should ...

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We’ve all been hearing the rumblings:  This bull market is in its sixth year; earnings are ahead of themselves; the Fed is about to raise rates and rain on the parade.  Headlines shout the various reasons why the bull market’s blue sky should begin to fall.  Markets are inherently volatile and ...

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March 9th marked the sixth anniversary of the start of the current bull market.  The ride has been nothing short of spectacular; the S&P 500 has more than tripled in value since the bear market low on March 9, 2009. While the current bull is riding a wave of positive developments, like ...

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Apple is arguably the greatest company of all time; with a market capitalization of $750 billion, it is also the largest. The company possesses a cult-like following for its products. Chances are high there is at least one Apple product in your household. It’s also likely that if you owned ...

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Investment professionals warn clients against investing in their employers’ stock.  After all, if your present income stream is dependent on one corporation’s fortunes, why risk your nest egg in precisely the same way?  Many employees of large corporations have no choice but to invest in their ...

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S&P 500 index fund investors are sitting very smug.  In 2014, including dividends, they enjoyed a 13.7% return.  For the last five years these funds have returned on average nearly 16% annually. What’s more S&P 500 index investors feel smart that they are paying some of the lowest ...

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The price of oil has collapsed from $100 per barrel in July to around $45 today.  Investors do not like being caught off guard; so when the price of a commodity gets cut by more than 50% in six months, panic sets in.  However, investors need to ask themselves why the price of oil has collapsed? ...

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Making money in stocks will be trickier in 2015.  With stocks now up three fold since the 2009 bottom, and on the cusp of finishing another double digit return year, the low hanging fruit is picked. Valuations are now richer than the ten year average, and the market’s dividend yield has ...

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The California Public Employees Retirement System (CalPERS) recently announced that it was exiting its entire $4 billion hedge fund portfolio, including its “funds of funds,” meaning investments in funds that in turn invest in hedge funds.  Hedge funds are pools of money typically managed to ...

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Closed-end funds (CEFs), Open-end funds, Exchange-traded funds (ETFs) - what are the differences?  To help facilitate informed investment decisions, here are the basics: Definitions and Differences Open-end Funds – Shares in these funds are bought and sold at the end of each trading ...

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When most people hear the word “trust,” they think complicated setups with big tax savings.  That may or may not be the reality.  A trust, like a corporation, is merely an entity.  Calling something a trust tells you very little about how it works or what its purpose is.   Every trust has ...

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Mutual funds offer attractive advantages that can enhance many portfolios.  They are professionally managed vehicles that provide diversification, and liquidity for short term cash needs, while at the same time allowing an investor to stay invested in the market.  They offer the opportunity to ...

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Charitable giving seems to be in the American DNA.  In recent years, Charitable Gift Funds, also known as Donor-Advised Funds, have become an increasingly popular gifting vehicle.  Fidelity’s charitable gift fund is now the second-largest public charity in the U.S., after the United Way.  Still, ...

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Stock market statistics support market lore and drive investors’ worst fears.  There’s an apparent treacherous intersection between a market overdue for a correction after a five-year bull market, with the historically two most difficult months for investors, September and ...

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Investors have long had a love affair with dividend yielding stocks.  The theory is that companies paying dividends usually are optimistic about both their business position and growth prospects.  Companies that pay and more importantly, continue to increase their dividend rate, tend to ...

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It’s an expensive stock market today, what with equities in the sixth year of a bull market.  We’ve gone 32 months without a pullback of 10% or more.  Valuations are up relative to the last 50 years.  The dividend yield is lower than.  However, with the 10 year Treasury yielding under 2.5%, ...

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You just signed a new will, reflecting a careful balance of family protection and tax minimization.  Congratulations, but don’t think you have covered all your bases quite yet.  Large components of many people’s wealth aren’t governed by the will at all.  It’s important to determine what ...

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Target Date Funds have been increasing in popularity and are now offered broadly within 401k and 529 plans.  Money flow into these funds has continued to soar. The name Target Date Fund (TDF) is based on the idea that money is invested with a target date in mind when an investor will need ...

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