A right fit. Good value. Research-based. 3 tenets of investing and drafting a football team
The NFL draft and investing are surprisingly similar. How? Plus find out about a potential $1 T boost to U.S. GDP and 4 ways moving to a new state can affect your wallet.
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April 28, 2022
The flowers are blooming, the birds are chirping, and the sun is warming...now only if the markets would get the memo!
We know market down periods are hard to stomach. It's not all bad news, though. Over the past few weeks, we've shown you charts of historical market patterns in chaotic environments over the past 90 years. They all show the same phenomenon—despite short-term blips, the market has gone up over time.
Another potential silver lining: We believe Quality companies are becoming available at more reasonable prices.
One of our in-house Portfolio Managers, Nate Weisshaar, describes it this way:
"There are good quality companies we've been watching from the sidelines for a while, and we're seeing them now at prices that make sense. We've been building our shopping list…we're activated and ready to go."
Our advice: Try to keep your long-term financial goals in mind when you get overwhelmed, and remember that this could be an opportunity to add new companies to your portfolio at a discount.
And read these stories...they may provide some reprieve and solace.
Smarter
The Parallels Between the NFL Draft and Investing
The NFL draft starts tonight.
Of course (because we're investors who are also football fans!), that got us thinking about the parallels between the NFL draft and investing.
In particular, we're wondering what portfolio managers can learn from the draft, and what teams can learn from investment professionals. Here we discuss four similarities.
Paid family leave and universal child care have been hot-button topics over the last several years. Conceptually, many people agree with them in principle. But when it comes to paying for these social programs, Americans are concerned about government spending and the ever-increasing national debt.
However, recent research projects that these family-friendly policies don't hurt the economy. Quite the opposite—they could add $1 trillion to U.S. GDP by 2028.1 Here's why:
Only 19% of American workers have access to paid family leave, forcing 3.8 million women who take leave each year to do so without pay.2 But what if they're able to work full-time?
Moody's, the financial services information company best known for its bond credit ratings, released a report last month that affirms that the $1 trillion is attainable "if women between the ages of 25 and 54 were able to participate in the workforce at the same rate they do in countries that have those support systems in place, such as the U.K., Germany, Sweden and Australia."1 And that's something the U.S. labor force desperately needs.
The U.S. unemployment rate is currently sitting at an extremely low level of 3.6%.3 (Many consider full employment to be around 4%-5%.) So at this basement level, labor is scarce, causing wages to rise and exerting inflationary pressures on the economy. The recent unprecedented exodus of workers from the labor force during COVID—from moms who needed to care for their families to older workers who retired early—has, in part, fueled the dramatic fall in unemployment. And with the continued aging of baby boomers, the situation could likely worsen.
So the U.S. needs women in the workforce. The solution? According to the National Women's Law Center, an advocacy group, expanding access to affordable, high-quality child care could increase the number of women with young kids working full-time by 17%.4
A Fool Wealth Special Report
Are You Concerned About Inflation? Recession? Then You Should Read This...
As inflation looms large and fears of a possible recession mount, it's important to have confidence in your investment process and philosophy.
How could the shifting winds of the short-term economy affect your investments?
Motley Fool Wealth Management's report, "Inflation. Rising Interest Rates. Recession. 3 Scary Topics Explained," unpacks these top-of-mind themes and unveils how our investment team is positioning for the short and long term.
Richer
Moving States: What Does it Mean for Your Finances?
What does the workplace look like for many Americans? A dining room table. A playroom-office co-op. The corner of a bedroom. An office with other workers? Possibly.
Working remotely is one of the lasting effects from the pandemic. Because of this ability to work from anywhere, a new report found that 2.4% of people, or 4.9 million Americans, have already moved to another city, town or state since 2020. And another 9.3% of workers, nearly 20 million Americans, are planning a move soon.5
One reason for this great exodus is simple: Why live in areas with high housing and other costs (including the cost of your happiness) when you no longer need to be near the office? Instead, some workers are headed towards places offering a lower cost of living, a better climate, or even closer (or possibly farther!) proximity to family. But before taking the leap to a new state, consider these four factors.
The Results are in: Are You Looking to Invest Responsibly?
Last week we asked: Are you interested in investing in an environmentally or socially responsible way?
Nearly 80% of our readers are in favor of investing responsibly. Of those, 51% would be willing to accept lower returns so their money can do good.
Here are the final results:
Yes, even if the returns are lower - 51%
Yes, but only if it doesn't affect my returns - 28%
Not interested - 21%
Get Started
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