www.advisorhub.com Open in urlscan Pro
104.26.7.137  Public Scan

Form analysis
1 forms found in the DOM

GET https://www.advisorhub.com/

<form role="search" method="get" class="searchform form-inline" action="https://www.advisorhub.com/">
  <div class="form-group">
    <label class="sr-only screen-reader-text" for="s">Search for:</label>
    <i class="fa fa-search search-icon" aria-hidden="true"></i>
    <input class="form-control default" type="text" name="s" id="s" value="Search Keywords" onclick="if(this.value == 'Search Keywords'){this.value=''}" onblur="if(this.value == ''){this.value='Search Keywords'}">
    <span class="input-group-btn">
      <button class="btn searchGo" type="submit">
        <i class="fa  fa-arrow-right" aria-hidden="true"></i>
        <span class="sr-only"> Search </span>
      </button>
    </span>
  </div>
</form>

Text Content

Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS ACCOUNT
Menu
 * News
     
   * * Latest News
         
       * * Finra Sidelines Ex-Morgan Stanley Manager For One Month Over
           Inherited Account Violations
       * * UBS CEO Bets on Wealthfront to Be Key Driver of Growth in U.S.
       * * Nasdaq Index Poised for the Worst January in Its 50-Year Existence
       * * RIA NewEdge Lures $15-Mln UBS Team, Ex-Merrill Star Pat Dwyer
         
       * Close
     * Advisor Moves
         
       * * Hightower Pursues Two Defectors For Allegedly Wooing Clients to New
           Firms
       * * Rockefeller Lands $4.4 Million Merrill Team in Chicago
       * * Morgan Stanley Nabs UBS Broker with $371-Mln Book in FL, Loses to LPL
           in NJ
       * * Wells Fargo Hires $2-Mln J.P. Morgan Advisors Broker in Los Angeles
         
       * Close
     * Enforcement
         
       * * Finra Sidelines Ex-Morgan Stanley Manager For One Month Over
           Inherited Account Violations
       * * Costly Affairs: Ex-UBS Broker Stole $5.8M from Client, SEC Claims
       * * Morgan Stanley Reaches $60 Million Settlement in Data Breach Suit
       * * Finra Dings Ex-Morgan Stanley Broker in Inherited Account Coding Case
         
       * Close
     * Markets
         
       * `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
       * ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
       * ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
       * ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
         
       * Close
     * Opinion
         
       * * Sirianni’s 2022 Predictions: The Year of The Great Entrepreneur
           Revival
       * * Why Only a Huge Shock Will Deter Risk-Taking Investors
       * * Sirianni: Toxic Culture
       * * Opinion: Coronavirus – What Advisors Need to Know
         
       * Close
     * Fintech News
         
       * * UBS “Committed” to Finishing Broker Workstation Revamp Despite
           Delays, CFO Says
       * * Wells Fargo Advisors Rolls Out eMoney Planning Tool for Brokers
       * * Fintech Firm Apex Clearing Agrees to Go Public Via SPAC
       * * Merrill Systems Hiccuped on Thursday as Stocks Slid
         
       * Close
     * From the Publisher
         
       * * Sirianni’s 2022 Predictions: The Year of The Great Entrepreneur
           Revival
         * Tony Sirianni Interviews Ken Cella — Principal, Client Strategies
           Group at Edward Jones
       * * Sirianni: Death of the Trainee
         * Welcome to AdvisorHub RIA
       * * From the Publisher: Sirianni’s Predictions for 2021
         * Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO,
           Arete Wealth
       * * Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO
           of Segall Bryant & Hamill
         * An AdvisorHub Interview with Christian Hyldahl, President of Varium
           Investment Partners
         
       * Close
     
   * Close
 * Deals & Comp
 * Recruiting Wire
 * Breakaway Center
 * Resources
   * Resources Home
   * Practice Management Resources
   * Transition Resources
   * Fintech Resources
   * Fintech Product Directory
   * Institute
   * Boutique
   * Events
   * Close
 * AH TV
 * AH Magazine
 * Podcasts
 * RIA Center
 * Asset Manager Hub
 * Culture Survey

close X
Search for: Search



BENJAMIN F. EDWARDS: COMPANIES LESS IMPACTED BY INFLATION COULD BE A SMART
CHOICE AMID MARKET VOLATILITY

by Bill Hornbarger, CIO, Benjamin F. Edwards
|
Resources
|
Benjamin F. Edwards
|
No Comments
Share This



The recent decline in U.S stocks , particularly against the backdrop of surging
Covid cases, has left many investors unnerved. Tuesday (Jan. 18), the Dow Jones
Industrial Average was down more than 540 points, a number that is sure to
capture the attention of anyone who watches the markets.

Veterans of equity investing know that one can always find reasons to worry
about market levels. In the current cycle, heightened inflation, a looming
change in the monetary policy regime, and the ongoing pandemic have all been
cited as reasons to be wary of stocks. The S&P 500 has posted three consecutive
years of positive returns, and it has been more than two decades since it was
able to post a fourth (1999). Earnings and earnings growth will be key in our
opinion to the market going forward. We are currently in fourth-quarter earnings
season and earnings are expected to grow approximately 20%. However, we believe
the markets will be more selective and look for companies and industries that
will be less impacted by the current heightened inflation.

After the strong markets of the last decade and the strong rebound from the 2020
Covid bear market, investors are concerned that another precipitous decline
could be right around the corner. In our experience, bear markets are often
triggered by events and not just the fact the markets have been strong for an
extended period. Recent examples include the Global Financial Crisis (2008-2009)
and the forced recession and shutdown of the economy in early 2020 due to the
pandemic. While an event could emerge at any time to shake confidence, the
environment for stocks is still positive: earnings and the economy are growing,
monetary policy, while changing, is still relatively loose, and investors remain
interested in stocks with bond yields below the rate of inflation.

A few things that we feel investors should be mindful of in the current
environment of increased volatility:

 * Corrections happen and are a healthy and normal part of any stock market
   cycle. Using the definition of 10% for a correction, they happen on average
   approximately every 18 months and staying invested through them is important.
 * Stock declines improve the prospects for forward returns from that point. We
   firmly believe that price matters and a decline in price and valuation can
   make for a more attractive entry point.
 * Despite the recent decline, the S&P 500 remains less than 5% from its record
   high.
 * Historically, the S&P 500 index has been resilient around the start of Fed
   hiking cycles. Although the index has returned -6% on average during the
   three months following the first hike of recent cycles, the weakness has been
   short-lived as returns average +5% during the six months following the first
   hike. Moreover, the S&P 500 P/E is typically flat during the 12 months around
   the first hike.
 * Not all stocks move at the same time or the same direction. So far this year,
   The S&P 500 Growth index is down slightly more than 5% while its value
   counterpart is up over 1% YTD.
 * Don’t ignore the “base effect.” The higher the indices climb, the larger the
   point (as opposed to percentage) swings are. On Black Monday (Oct.19, 1987)
   the DJIA fell 508 points or 22.6%, the worst single day for the U.S. market
   in history. Tuesday’s (Jan. 182022) 543-point decline by comparison was a
   percentage loss of 1.5%.

No one likes volatility, but it is a necessary part of stock investing. Stocks
have been one of the best performing asset classes over the long-term and to
realize those returns, investors must accept volatility and periodic
corrections. Actively managing risk through asset allocation and disciplined
rebalancing can help investors weather those periods. Another key attribute of
successful investing is remaining resistant to panic and euphoria and many
investors might be inclined to liquidate a part or all of their stocks in these
environments. History has shown a disciplined approach to rebalancing into that
volatility has been a winning strategy. With the markets still near record-high
levels, and with abundant liquidity, it remains an opportune time to ensure that
one’s portfolio is aligned with their individual risk and return objectives and
tolerances.

MORE ABOUT BENJAMIN F. EDWARDS



LIKE THIS ARTICLE? LET ADVISORHUB COME TO YOU!  SIGN UP


Share This






EXPLORE THESE PODCASTS

AllIndependence
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to
include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more

Valuable information and insight for entrepreneurs and financial advisors.
There’s a new breed of modern advisors who want to make a difference and do
something meaningful.
LPL Financial Research Chief Market Strategist Ryan Detrick and guests discuss
current market trends and outlooks, and share insightful projections each week.
Michael Kitces and Carl Richards discuss financial advising topics.
Incisive conversations focused on helping investors navigate the ever-changing
global market landscape
The “new advice value stack,” and how firms can use it to help maximize their
own value propositions for their clients.
Interviews and insights for advisors curious about switching to a new broker
dealer.
The Brighthouse Financial Insights Panel is a group of leading, independent
experts providing powerful insights into the big challenges facing you and your
clients.
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty
Financial Partners. A podcast dedicated to presenting fresh ideas and best
practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of
topics from recruiting and transitions, succession planning, practice
management, M&A and more.

Our goal is to unlock the challenges to reveal the opportunities and what it
means to provide advice in the 21st century.
As a nationally recognized recruiter and consultant to financial advisors, Mindy
Diamond has unmatched experience in introducing advisors to the independent
space.
The must listen-to podcast for investors, venture capitalists and financial
advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business
consultant to financial advisors.
We interview top financial advisors and visionary voices to bring you the
strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors,
financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every
week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of
well being.
Timeless wisdom, actionable information you can use right now to make smarter
investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Suzanne Siracuse asks the questions nobody else asks, as influencers and
interviewer collide in her new and truly unique podcast series The Big Reveal.
Our webcast is dedicated to helping our viewers get real insights by avoiding
the cognitive dissonance of today’s media outlets and biased editorial filters.

Load More



RECENT EPISODES FROM THE TONY SIRIANNI PODCAST


 * A CONVERSATION WITH JEFF CROSBY — FOUNDER AND CEO, 3XEQUITY
   
   Jan 25, 2022


 * A CONVERSATION WITH KEN CELLA — PRINCIPAL, BRANCH DEVELOPMENT AT EDWARD JONES
   
   Jan 3, 2022


RECENT EPISODES FROM MINDY DIAMOND ON INDEPENDENCE PODCAST


 * MERRILL LIFER ON BREAKING NEW GROUND: THE LEAP TO INDEPENDENCE WITH LPL
   STRATEGIC WEALTH SERVICES
   
   Jan 27, 2022


 * ROCKEFELLER REVISITED: WHAT’S DRIVING THE SUCCESS OF THIS 3-YEAR-OLD “MODERN”
   MULTI-FAMILY OFFICE?
   
   Jan 20, 2022


 * INDUSTRY UPDATE ON 2022: 11 TRENDS DESTINED TO IMPACT ADVISORS AND THEIR
   BUSINESSES
   
   Dec 16, 2021


 * INDUSTRY UPDATE ON MERRILL’S PROJECT THUNDER: TOO LITTLE TOO LATE?
   
   Nov 4, 2021


RECENT EPISODES FROM THE POWERING INDEPENDENCE PODCAST FROM DYNASTY FINANCIAL
PARTNER


 * GETTING THE INSIDE SCOOP ON THE INDEPENDENT SPACE: A CONVERSATION WITH BEN
   HARRISON
   
   Aug 23, 2021


 * HOW TO FIND AND KEEP THE BEST TALENT WITHIN YOUR ORGANIZATION
   
   Jul 8, 2021


RESOURCE CATEGORIES

Practice Management 
Transition 
Fintech Resources 
 * About Us
 * Contact Us
 * Advertise
 * Events
 * Careers


 GET OUR NEWSLETTER

Industry focused content and breaking news.

SIGN UP


CONTACT US

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2022 AdvisorHub
 * |Terms of Use
 * |Privacy Policy
 * |Advertise
 * |Careers

 * Facebook
 * Linkedin
 * Twitter

Back to top