Crews Bank & Trust Blog (17)

04/25/22

Best vs. Worst

Some investment managers promote a strategy called “Sector Rotation” where they try to time the market by trading between the 11 major sectors of the economy. The gains can be tempting, but the risk is high. For instance, if you owned all energy stocks, you would be up +40% year to date, but if you thought communications was the place to be, you would be down -20%. This is a possible difference of 60% in your returns. According to the chart, which includes more sub sectors, the difference is the highest since 2000.

Community Bank

04/21/22

Choose Local: 10 Benefits of Community Banks

Community banks are threaded into the local economy of many towns in the country. By serving the local residents and businesses with necessary financial services, community banks help them get ahead in their corner of the world.

Chart of the Day, Managing your Wealth

04/7/22

Sale and Dividends

There are two ways to make money in stocks:

Chart of the Day, Managing your Wealth

04/5/22

100% of the Time

I think about this chart often during discussions with clients on having too much exposure to single stocks.

Chart of the Day

03/30/22

Real Estate Prices vs. Income

Real estate is unique since humans need a physical place to live and work. Economics says the price of those physical places is constrained by the cost of the physical labor to build them.

Chart of the Day, Managing your Wealth

03/23/22

Bond Length Matters

Duration describes the time it takes for a bond holder to get all their money back and/or the change in price for each 1% change in the interest rate.

Chart of the Day, Managing your Wealth

03/16/22

S&P 500 Wins Again

This chart from an article in today’s Wall Street Journal shows the percentage of funds that underperformed the S&P 500 in the last 12 years. Again, passive indexes beat 85% of the active managers last year, and the majority have done so for 12 consecutive years. This is one of the reasons why we champion passive index funds.

Chart of the Day, Managing your Wealth

03/14/22

Car Dealer Profits

I am reminded of this chart every time I drive by a car lot. Before the pandemic, financing and insurance profits made up 70% of the dealer’s profits. Now, due to price appreciation of their inventory, that percentage has changed. However, the dollar profits from financing and insurance continue to increase. Car dealers have become more like finance and insurance companies.

Chart of the Day, Managing your Wealth

03/12/22

Stay Invested

Below is a great chart from Putnam, which shows that over the last 15 years, if you missed the top 10 best days of market gains, your return would have gone from 10.66% to only 5.05%.

Commercial Real Estate, Loan Types

03/11/22

How to Afford the Down Payment for a Commercial Loan

A commercial loan is a type of loan that is available for businesses to fund growth, equipment, property, and more. Depending on the type of loan, how much money you need, and your credit history, the down payment for commercial loans varies.

On Our Minds

Best vs. Worst

Choose Local: 10 Benefits of Community Banks

Sale and Dividends

100% of the Time

Real Estate Prices vs. Income

Bond Length Matters

S&P 500 Wins Again

Car Dealer Profits

Stay Invested

How to Afford the Down Payment for a Commercial Loan

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