The BC Journal

#Finterms: 60/40

60/40 is a financial term Wealth Managers use referring to a portfolio mix, or percentage of equities (stocks) versus your fixed income (bonds) investments. The mix of 60/40 has been a standard (and popular) allocation that seeks to diversify investment risk across stocks (growth) and bonds (income).

The 60/40 blend can be modified based on the investor’s stage of life, retirement/income needs and risk tolerance. More recently, the classic 60/40 portfolio blend is being re-thought due to higher equity valuations and the low interest rate environment versus what has recently been a period of increased inflation rates.

#finterms #60/40

#Finterms

June 2022 Market Insights

Enclosed is our latest Market Insights report - a monthly 1-page distillation of timely market and economic news along with commentary on relevant business and personal planning topics.

Our ongoing goal is to share valuable insights and actionable thoughts gained from our perspective as investment advisors, financial planners and corporate finance professionals.

In this edition, you will find:

  • Deal Market at a Glance: Quick look-in at 2Q22 US transaction activity
  • Summary of the equity markets and interest rate environment
  • What's Trending: Economic impact of NH home sales & economic effects of Federal Tax Credit Expansions
  • Finterms: What is a Business Valuation?

Quick Look-in at 2Q22 US Transaction Activity

With the recent volatility in the public markets and the macroeconomic backdrop changing rapidly, we thought we would quickly revisit the resulting implications to the M&A environment.

As widely documented, the last several years have represented a vibrant deal making setting, notwithstanding the impact of the Covid-19. Similar to real estate, it has been a seller’s market with a great deal of capital chasing quality assets. 2022 has seen a confluence of new factors, including rising interest rates, tight labor, supply chain challenges and the war in Ukraine, that have shifted confidence levels and have introduced new operational and financial challenges into the fray. That said, strategic consolidators and private equity alike continue to look for investment opportunities capable of supporting the strategic imperative to “win” over the long-term.

May 2022 Market Insights

Enclosed is our latest Market Insights report - a monthly 1-page distillation of timely market and economic news along with commentary on relevant business and personal planning topics.

Our ongoing goal is to share valuable insights and actionable thoughts gained from our perspective as investment advisors, financial planners and corporate finance professionals.

In this edition, you will find:

  • Market Commentary: Corrections, Recessions & Bears
  • Summary of the equity markets and interest rate environment
  • What's Trending: NH foreclosure rate trends & healthy consumer spending trends
  • Finterms: What does EBITDA mean?