Ignoring the right things? (overlooked principles)

Eagle Wealth Management |
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Weekly Market Commentary
 


 

Hello,

Quick question: What do you usually find yourself reading?

News summaries, headlines, and quick bits to keep yourself updated?

Or longer reads like books and articles?



We're ever more inundated with information that's eager to capture our attention.

We click because we want to stay up to speed and avoid missing out.

The trouble is, the news is always changing. There's always a new headline or story to chase.

And the more we chase, the more we feed the need for constant updates.

If you're like us, you're often wishing for more time to delve into the deeper stuff.

The book a friend recommended.

That long-form article you have saved in your email (it's been there for weeks).

Those are the reads that can change our lives.

Not the constant drip of passing information that loses relevance almost as soon as you're done reading.

That kind of deep attention takes dedicated effort that's hard to find in our frenetic world. However, in making time for the deep work, we've learned a few things worth sharing.
 
One of the secrets to long-term investing is knowing what to ignore.

Here at Eagle Wealth, we’re constantly consuming a flood of analysis, economic reports, breaking news, earnings reports etc. etc. etc.

To use that material, we’ve developed frameworks to channel the information to paint as complete a picture as possible.

To be able to know what to focus on and what to ignore as noise.

It's a constant battle.

Here are a few other valuable (and often overlooked) principles that we've learned through deep reading and experience.

- Most things happen in cycles.
- It's usually better to pursue small wins over time and avoid big mistakes than to chase big wins.
- Always question what we "know." Especially about markets and the economy.
- A need for action may be about a desire for control. Often, doing nothing is the right move.
- Focus on finding good value for money.

Bottom line: so much of what we read is noise.

It takes dedicated effort and close attention to sift through it for insights.

As always, we’re watching markets and we’ll check in as needed. Give us a call if you have any questions.

Thoughtfully,

Your Eagle Wealth Team

P.S. What books have changed your life? Would you share your recommendations? We’re always on the hunt for new wisdom.
 
 
 

Eagle Wealth & Habitat for Humanity


You may have noticed a story on Central Oregon Daily News last weekend about a dedication ceremony for 12 homes off 27th Street in Bend (you can watch it here).

As sponsors of Habitat for Humanity’s financial and educational programs, Matt Hobson, Lead Financial Planner, and Cami Staskal, Partner, attended to represent Eagle Wealth and hand-out tool bucket gifts to the twelve families who’ve earned their new homes. 
 

 

Three of the families spoke about their struggles and journey to finally becoming homeowners.  Some are the first ever in their family to own a home. All of them devoted an immense amount of time for this goal — from sweat-equity, budgeting, financial coaching, and attending monthly classes.

It was a heart-warming reminder of the amazing work of Habitat for Humanity.


   


 
 

The Week on Wall Street

Stocks fell for the second straight week on inflation concerns despite a report on consumer prices that was initially well received by investors.
Stocks Slide

Tuesday was the only bright spot during the week as stock prices rose after the Labor Department report showed the Consumer Price Index rose 3.2% in February compared with a year earlier. It was a bit warmer than economists expected but cooler than investors feared. The news sparked a day-long rally, with the Standard & Poor’s 500 stock index setting its 17th record high of the year.1,2

Following Tuesday, caution lingered as investors parsed the underlying data behind headline consumer inflation numbers. Thursday's fresh producer price index (PPI) report showed that wholesale prices increased by 0.6% in February, more than the expected 0.3% increase. Additionally, core PPI (excluding food and energy) was hotter than expected. 

Retail sales, also reported on Thursday, were disappointing, rising less than expected and adding to the inflation angst. The news rattled investors and contributed to stocks closing lower for three consecutive days to end the week.3,4
Broadening Leadership

Unlike the prior week when the S&P 500 fell the least, last week it lost slightly more than the Dow but less than the Nasdaq. That performance pattern suggests market leadership may be broadening. Also, the energy, financials, and materials sectors all posted gains last week, showing that other groups may join the tech-led rally.5
 

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.
Source: YCharts.com, March 16, 2024. Weekly performance is measured from Monday, March 11, to Friday, March 15.
ROC 5 = the rate of change in the index for the previous 5 trading days. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.

 
 

1. The Wall Street Journal, March 15, 2024

2. The Wall Street Journal, March 12, 2024

3. CNBC, March 15, 2024

4. CNBC, March 15, 2024

5. Sector SPDRs, March 15, 2024

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

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