Author: Jason

    Q3 2024 Review: Maybe The Market Does Care?

    Maybe the market does care? Out of nowhere, the broader market “woke up” and decided there were a whole lot of compelling investments that had little to do with AI. For the first time this year, the average S&P 500 stock outperformed the market cap weighted index, going up 9%, or almost double.  Many of…

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    Compass Sponsors 4th Annual Fairfield Paddle Fest

    September 7th, 2024 The Fairfield Rotary Club and Compass Wealth Management present the fourth annual Paddle Fest! Proceeds were awarded to Operation Hope, whose programs and services focus on eliminating hunger and homelessness, and are designed to help people solve their crises and build stability in an environment where compassion inspires dignity and hope.https://operationhopect.org/ Despite…

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    Q4 2023 Compass Review: Time

    The cornerstone of investing is the tradeoff between interest and time. A dollar today is worth more than a dollar tomorrow because you can earn interest on that dollar. When interest is zero, time matters less. When time matters less, you take more risk to grow your assets. The most important consequence of higher interest…

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    Top Heavy

    Upside down pyramids are unstable. With all that weight up high they can be tipped over with a feather. If you are near one, it’s best to stay away until the inevitable fall. That’s better! Now we have a nice solid base. Sure, it came at the price of a crash, but the fall was…

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    Q3 2023 Compass Review

    Expectations are hard to change.  We expect certain things from our partners, our friends, an Amazon delivery, and a dining experience.  When these expectations aren’t met, it’s hard to accept reality.  Here is the new reality; Lunch just got a whole lot more expensive.  In previous letters we warned that the era of “free lunches”…

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    Compass Sponsors 3rd Annual Fairfield Paddle Fest

    September 9th, 2023 The Fairfield Rotary Club and Compass Wealth Management present the third annual Paddle Fest! Proceeds were awarded to local charitable organizations, including Home of the Brave and Operation Hope. It was another terrific event out on the water with the storm clouds holding off, music playing, and participants paddling their hearts out!…

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    Q2 2023 Compass Review

    The second quarter can be summed up in one word: Resilient.  A resilient economy, despite higher interest rates.  A resilient stock market, despite narrow leadership by the tech giants.  A resilient banking system, despite last quarter’s banking failures.  A resilient Ukraine.  And a resilient America, despite a slate of controversial US supreme court cases.   It’s…

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    Q1 2023 Compass Review

    A major crisis. Accommodative monetary policy to save the system.  Lower long-term interest rates. Financial and energy stocks priced for a major recession.  Large cap tech stocks driving the market averages higher.   Was this the summer of 2020 or the first quarter of 2023? After a rotation away from growth at any cost over the…

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    Q4 2022 Compass Review

    The world got a whole lot poorer last year.  There was almost nowhere to hide.  The S&P finished down 20% and the Nasdaq lost 33%.  Even long-term US Government bonds declined 29%.  Cash bought you less food at the grocery store.  This meant the classic 60/40 stock and bond portfolio had one of its worst…

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    The End of the Free Lunch

    In our last letter we warned that there are major changes happening in the world economy: “The Times Are Changing”.  In this letter we would like to reiterate what we are seeing and lay out how we are adapting to the new realities in greater detail. We are seeing the first significant inflationary pressure in…

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