Dynamic Growth

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In this episode, we discuss the recent FOMC meeting where the FED decided to raise interest rates by 75bp or 3/4 of one percent. We discuss the broader implications for markets. We also touch on recent news of the COO of Beyond Meat and his legal battles after allegedly assaulting somebody in a parking lot by biting of a piece of their nose. We end by discussing diversification in bear markets and how to diversify across asset classes. We hope you enjoy the episode.

In a global effort to curb greenhouse gas emissions, many countries have adopted energy policies against domestic self-interest. In Europe, the price of natural gas has gotten so expensive that fertilizer producers are not able to operate profitably, threatening the global food supply. In a related story, Netherlands farmers are mandated to cut down on fertilizer usage. These farmers have been protesting for a while and it has largely been ignored and under-reported by news outlets. We then close by discussing some recent crypto news involving the creator of Terra Luna and his possible legal troubles.

We hope you enjoy the episode!

Nate discusses structured notes and how they can fit into a diversified portfolio and provide some downside protection for conservative and aggressive investors. He also discusses two notes that are currently being offered.

Derek discusses recent news about crypto regulation and the SEC as well as the outlook for FED tightening and ends with discussing the recent run-up in the USD as other currencies fall relative to the dollar. We discuss what that means for the U.S. and the globe and emerging markets in particular.

We hope you enjoy the podcast!

Nate is back from his multi-day trip to the Colorado mountains with nothing but a backpack and a fishing rod. He speaks on some of the revelations he had while hiking and what he brought back from the trip. Derek fills him in on the economic events from last week, namely the Jackson Hole summit and the announcement that the White House chose to forgive up to 20,000 student loans for specific borrowers.

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At first glance, I am willing to bet a lot of companies will cut their marketing budgets. Marketing is often viewed as an expense but let's be real, marketing is an investment.

Another way to think about this is with your investment portfolio for example. During the last six months, you may have felt the urge to sell some of your investments. But if you listen to this podcast on the regular, you'd know that the best thing to do is to leave your investments where they are. Just like marketing—when investing for the long term—you may reallocate or recalibrate your investment, but you only truly "lose" if you eliminate them.

Whether B2B or B2C, your customers' budgets are also in high demand. This is the time when attention needs to be gained, customers need to be educated, and value propositions need to get stronger.

Nate discusses a study in patience with children and its results later in life. This applies to investors in bear markets, patience is a difficult thing to master but important for long-term success. Derek starts a discussion around recent inflation data and the story that Blackrock will begin offering a bitcoin trust to institutional investors and what that means for the core principles of bitcoin. We hope you enjoy the podcast!

In this episode, we discuss inflation once again and give our thoughts on the recent legislation designed to reduce inflation. As well as recent events developing in China and Taiwan. Lastly, Nate gives his thoughts on the benefits of "thinking slow" referencing a book titled "Thinking, Fast and Slow" by Daniel Kahneman and how that relates to emotions and investing. We hope you enjoy the episode!

Back from vacation, Nate discusses some stocks on his radar that he believes will be a great opportunity to buy and hold while receiving a dividend. He also gets in touch with his youth to discuss his recently re-kindled love for skateboarding. Derek talks about the recent news out of the White House that we are currently "not" in a recession despite traditional definitions and lastly we discuss our market outlook not mapping directly onto recent market performance and why investors might be too quick to call the bottom of this bear market.

We hope you enjoy this week's episode!

Derek is back in the studio for the first in-person podcast in a while. We discuss the pros and cons of passive vs active investing. Passive investing is a great plan long term but it can be tough during bear markets. If you know what you are doing and have the knowledge and resources to help, active investing can protect your downside during market drawdowns. We hope you enjoy it, if you like the podcast follow us on social media @crosbyadvisory and share the podcast with a friend!

You get what you pay for

Now more than ever an investor has to understand how asset classes work within the market cycle and where you are at in the cycle. Over the years, many investors have gotten away with a passive strategy. When someone wonders why they would pay someone to manage their investments during a bull market, the answer might seem obvious on the surface. Today you might not find the answer quite so simple. You need an iron stomach if you are committed to passive investing.

The most recent CPI (inflation) number was released on June 15 and we were expecting a slight decrease. Unfortunately, it was reported as 8.6% so, despite rising interest rates and quantitative tightening (watch our video explaining quantitative tightening in less than 2 minutes), inflation is still going up. This is not the news we had hoped for because the FED will keep tightening the economy and it appears the dream of a soft landing is off the table. With keeping inflation under control as the top priority, we have to consider that a recession may be on the horizon. As we reflect on where the market is at today, it begs the question as to why this was such a blind-side for the Fed?

As investors, we are at a cross-road. With inflation continuing to climb and the Fed stating they don't intend to lower interest rates until 2024, we suggest you take an informed approach to your investment strategy. You need to understand how asset classes react during different times in the cycle so you can determine the best time to make shifts. We study the market for a living and trust us, this can certainly be tricky.

Crypto washout

Speaking of an iron stomach, crypto investors are no stranger to the swings. Today, crypto markets are not as well regulated as the stock market and one downside is that there is no breaker in place to stop massive sell-offs. It's important to remember that the crypto concept is still very new (relatively speaking) so the swings are somewhat expected. For example, Bitcoin was 65,000 per coin and now it's down to 17,000 per coin (as of June 20). The upside is only the strongest cryptocurrencies will survive.

When we think about the crypto swings, we can't help but talk about price and value. Price is what you pay and value is what you get. Take Bitcoin for example, as people come into the crypto space and adopt the technology the price will go up but most investors will agree that the value isn't the price. The value is the technology.

Diversification – an example

We recently had a raving endorsement to remind us why the modern portfolio needs at least 5 different asset classes. This was the scenario:

• A life event occurs where a family member needs to borrow some money
• This person needed to pull 10s of thousands of dollars out of their investment account
• We were able to review their commodity position and found that they had plenty of money (triple what they needed) in assets sitting at a high point
• We were able to execute this and not impact their overall account

If you build a portfolio like that there will be times when you'll look foolish – because you have uncorrelated assets some will act as an anchor but you'll have more consistency overall.

In closing … some advice

• Just because something looks like a deal doesn't mean it is
• There really is no difference between being early or being late
• The mid-term trend is likely down
• Hold your cash, there will be opportunities soon

Times will be good again and opportunities will come but for now, stay steady and remember your goals.