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Republican's Surprising Sweep
Republican's Surprising Sweep

After many months of contentious and extremely negative campaigning from both parties, the Republicans emerged as victors last night in several very close races.  This was a surprise to most, as polls and pundits alike had already given the White House keys to Mrs. Clinton.  Many have asked what FAI is doing in the portfolios given this surprising event.  

Curtis Gross
Brexit Memo

Yesterday the UK voted to leave the European Union. This decision was a surprise to the global markets as many investors had believed that the chance of this occurring was very low.  In reality, all of the major polls were suggesting that the decision was actually a 50/50 decision and nearly impossible to call.  Effects on the major global economic participants from UK’s exit from the EU is difficult to predict as we are in uncharted territory. The initial analysis in the short-term suggests a weaker economic environment for both the UK as well as the rest of Europe as trade disruptions influence both demand as well as currencies. 

New Funds and Apps Make Investing in Values that Much Easier
New Funds and Apps Make Investing in Values that Much Easier

With elections coming up, many of us are looking for candidates who will best promote our values. You can also vote with your pocketbook.

As a consumer and investor, you have the power to invest in companies whose actions reflect your values. Collectively, this power can create a tremendous shift in companies mores, resulting in positive change globally.

The Bond Conversation
The Bond Conversation

Interest rates rise, bond prices fall. Rates go up, prices go down. A short conversation between father and son about bonds and how they work.

Curtis Gross
Market Correction - August 2015

No doubt that the recent stock market volatility has captured your attention over the past few days.  To help clients process this information, we thought it might be helpful to offer a historical perspective to recent events.  Performance of the equity markets over the past 5 years has clouded investors prospective of how volatile the stock market can be.

J. Michael Martin
Our Portfolio Response to China's Devaluation

Last Wednesday, the People’s Bank of China (PBOC) announced a 1.9% devaluation of its currency, the largest in its history! The Dow Jones Industrial Average quickly plunged to a new low for 2015, down about 1.5% in just a couple hours! The dollar price of the 10 yr. U.S. Treasury bond rose +1.2% on the news, and European stocks closed down -2.7% on the day (London closes at 11:00 AM New York time).

J. Michael Martin
The Blue Sheets - Meeting The Challenge: Finding safe returns in a slow-growth, low interest-rate world

Broadly speaking, both stocks and bonds are quite expensive by most historical metrics: they are valued at the high end of the range that they enjoyed when expectations for economic growth were twice our current reality.

Blue Sheets: Strategy for Choppy Markets
The Blue Sheets: Strategy for Choppy Markets

Throughout 2013, a surge of demand for U.S. stocks swept the S&P 500 Index to a 32% total return! In that same 12 months, though, the earnings of those 500 companies only grew by about 5%. Hmmm.

J. Michael Martin
The Power of Portfolio Diversification

While understanding the past is crucial, investing is always about the future… the near future and the far future; our personal future and the future of the world we live in. When we make investment decisions, of course we cannot know how things are going to unfold... so we make assumptions, usually based on a notion that the future world will more or less resemble the one we have known. And it will …except when it won’t!

Curtis Gross
Advisers Handle Hot Biotech Stocks With Care

Another way to view the market is by evaluating a biotech company's value relative to how much it's spending on research and development -- often considered the industry's real growth engine.

Those metrics show a market that's a bit split, says Curt Gross, research director at FAI Wealth Management in Columbia, Md., with $300 million under management.

He agrees large-cap biotech prices appear stretched. But mid- and small-cap stocks are trading at much more appealing valuations, Mr. Gross says.

To read the complete Wall Street Journal article please click here.