This issue of the Financial Pulse presents the second article in our series on the JRB's investment offerings. It focuses on our Small- and Mid-Cap Funds. Since 1926, small- and mid-cap stocks have outperformed money markets, bonds and even large-cap funds. The trade-off for these long-term returns is higher short-term volatility. As our model portfolios show, small- and mid-cap funds play an important role in a diversified portfolio.
Determining your progress toward your financial goals can be difficult. Focusing on your investments alone provides an incomplete view. Estimating your net worth can give you a fuller picture of your total wealth. Simply put, net worth is the difference between your assets — home, auto, investments, cash, etc. — and your liabilities — mortgage, car and student loans, credit cards, etc. Our article, Defining and Calculating Your Net Worth, will show you how to take this snapshot of your financial progress.
The Federal Reserve's ongoing monetary support for the economy combined with the recent passage of the $1.9 trillion COVID relief package and improvements in vaccination rates have some worried about the potential to ignite a round of inflation. The Cammack Chart of the Month, Inflation Expectations Break Out to Multi-Year Highs, addresses this topic.
Finally, we are experimenting with a new format for the Financial Pulse. Links to all of the articles are included in "A Word from the CEO." Please let us know what you think of this change.
I look forward to hearing from you about the new format of the newsletter or any aspect of your financial and retirement planning. Please send me an email or call 888-JRB-FREE (572-3733).