Conversations with LVM Capital

Tyler and Nick break down what’s driving S&P 500 earnings growth, why a small group of tech and energy companies is doing much of the heavy lifting, and what bank results, valuations, and AI investment could signal about the months ahead. They also explore whether strong earnings can keep the market climbing without further valuation expansion.

Five-Minute Finance is becoming Conversations with LVM Capital, now on video. Watch on YouTube, Apple Podcasts, or Spotify to follow along with the charts we discuss in each episode.

Tyler and Drew discuss the current breakdown of market breadth which is gaining a lot of attention from investors and media outlets. Tune in to see what's worth knowing.

Tyler and Jordan analyze the latest economic data, including rising personal income, job growth, and strong corporate earnings projections. They discuss the significance of manufacturing expansion after 26 months of contraction and put recent stock market volatility into historical context. With markets historically rebounding after corrections, they outline why long-term discipline, proper asset allocation, and emergency cash reserves remain critical for investors. Tune in for a data-driven perspective on navigating market uncertainty. 

Join Tyler and Drew as they discuss the S&P 500’s impressive year-to-date returns, driven by strong earnings growth and rising valuations. We’ll also take a look at historical drawdowns, noting that the average peak-to-trough decline is about 14% in any given year, with 25% declines occurring in 21% of years since 1928—roughly every five years. To wrap up, we offer insights on how to navigate these inevitable market fluctuations, emphasizing the importance of having a tailored stock allocation and extending your investment time horizon. 

Tyler and Chuck sit down to discuss College Education planning. The discussion begins with having the end in mind by knowing the current costs of college and the expected future costs of college. We review average merit and grant based awards and the current cost for education in Michigan. Next, we review the benefits of college education and highlight the higher pay and lower unemployment rates for college graduates. Later, we review 529 plans as the best place to save for college education and the benefits of starting early. We wrap up the conversation with college prep tips on when to start taking entrance exams, AP courses, applying for scholarships, and filling out FASFA forms. Find the charts discussed on the podcast at Podcast (lvmcapital.com). 

Tyler and Jordan are back to discuss interest rates, the fixed income market, the stock market, and recent earnings developments. Find the charts discussed on the podcast at Podcast (lvmcapital.com). 

Tyler and Jordan discuss stock market returns to start 2023, historical returns in the fourth quarter after poor returns in August and September, investing for the longer-term, improving yields for future fixed income returns and more. 

Tyler and Jordan sit down and review several market related charts. We discuss market breadth, market concentration, the cautious investor, market fundamentals, and market valuations. Follow along with the charts in the show notes at the link below. 

https://www.lvmcapital.com/post/market-chart-review 

Tyler and Jordan review the “Momentum Factor” in our fourth and final installment of the fundamental factors of investing. Momentum investing is a strategy that seeks to profit from the continuance of an existing market trend. This trading strategy centers around investors buying stocks that are already going up and selling stocks that are falling. The largest ETF by assets under management (AUM) for momentum investing is the iShares Momentum factor ETF which analyzes stock prices, adjusted for volatility, over the past 6 and 12 months. 

Momentum is about price and price can tell a story about how investors sentiment stands for a certain security or the market. One potential issue with using price as your only guide is that momentum can change very quickly, and investors need to have a set of rules in place to follow including rebalancing rules to account for frequent changes in momentum trends. It is best to use these strategies that have frequent rebalancing and turnover in the correct type of accounts as turnover and realized sell activity can cause tax consequences in taxable accounts.   

Tyler and Jordan conclude with how LVM uses the momentum factor, which focuses on momentum in analysts’ earnings and revenue estimate trends. 

Tyler and Chuck discuss the recently passed SECURE 2.0 Act by congress and some of its benefits for retirement savers. Some key take aways include, Required Minimum Distribution (RMD) age increasing to 73 in 2023 and to 75 in 2033, reduced penalties for failing to take a RMD, increased catch-up contributions to retirement accounts, employer Roth matching contributions, 529 plan conversions to Roth accounts, and more.