• Adams Financial Concepts,  COVID-19,  Current Events,  Mile High View,  Return on Investment,  Super Cycle,  The Investment Industry

    Do You Believe It?

    Peter Lynch said, “If you cannot convince yourself ‘When I’m down 25 percent, I’m a buyer’ and banish forever the fatal thought ‘When I’m down 25 percent, I’m a seller’ then you’ll never make a decent profit in stocks”.[1] Lynch was one of the greatest investors of all time. He was, of course, talking about a single stock, not an entire portfolio. But in a concentrated portfolio, a stock down 25% can drag down the short-term performance. For the first quarter, I expect that the total of my client portfolios will be roughly flat. That is after a 77% gain in 2020 and 40% gain in 2019. None of the…

  • Adams Financial Concepts,  COVID-19,  Current Events,  The Investment Industry

    Are Stocks Overvalued?

    Are stocks overvalued? Any number of “experts” are concluding that they are indeed overvalued. But are they? Really? When I was a rookie stockbroker back in 1987, I cold called a prospect who told me the market was overbot and overvalued. The DOW at that time had broken through 1,700, and this prospect had pulled his money out of the market a month earlier and was waiting for the DOW to drop off to 1,300. I never talked to him again. I don’t know if he is still waiting after 34 years for DOW 1,300. Those of us who stayed in the market have ridden that growth to 32,000. I…

  • Adams Financial Concepts,  Financial Planning,  Mile High View,  Return on Investment,  The Investment Industry

    How We Achieve High Returns

    Peter Lynch called them “10 baggers”. Some people call them “home runs”. Some authors describe them as “long tails”. They have been called “high-fliers”.  What are they? They are stocks that will grow ten-fold or more. The strategy at Adams Financial Concepts, LLC (AFC) and for Mike Adams, even before founding AFC, has been to search for those companies with the potential to be 10-baggers and to do that in portfolios with a limited number of total holdings. When there are 300 stocks in a portfolio the 10-bagger will make little difference on the total portfolio performance. But in a portfolio of eight to ten stocks, one high flier can…

  • Adams Financial Concepts,  Current Events,  Financial Planning,  Mile High View,  Return on Investment,  The Investment Industry

    Higher Returns

    I believe that higher returns do not mean higher risk. Let me say it again: I believe that higher returns do not mean higher risk. Albert Einstein stated: “No matter how, where or when or by whom measured the speed of light in a vacuum is constant.” That sums up the scientific method. There are no exceptions. NONE! If someone were to find an exception, the whole theory is invalid. Since Irving Fisher in the 1920s, economists have been trying to find the theories and laws that govern the stock market. The “Efficient Market Curve” has been proposed and is generally accepted as rational and logical. It is the concept…

  • Adams Financial Concepts,  Financial Planning,  Return on Investment,  The Investment Industry

    Cutting Your Taxes In Half or More

    Choosing the right portfolio structure can reduce your taxes by 50% or more. That is a hidden benefit of building tax efficient portfolios. My passion is to create and maintain wealth for our clients, and one way to do so is pick superior stocks to get superior returns. In addition to that, at AFC our focus is to build wealth in ways which also keep taxes low. Ordinary income rates are almost twice of what long-term capital gain rates are for those in the higher tax brackets. A portfolio that moves in and out of stocks over a shorter-term time frame will generate short-term gains which result in marginal tax…

  • Adams Financial Concepts,  COVID-19,  Current Events,  Financial Planning,  Return on Investment

    SHOW ME THE MONEY!

    One of the most famous movie quotes comes from Jerry Maguire: “Show me the money”. In my industry, I hear so many stories about making money in stocks that make me want to shout at the teller “Show me the money!” I want the authors or story tellers to show me their strategy really works. Recently, I received a new white paper from Northern Trust that was titled “Getting Paid to Lower Your Risk”.[1] The authors were credentialed (PhD and CFAs); These are intelligent people. I wanted to see how Northern Trust was paying their clients to lower their risk. I custody my client accounts at Interactive Brokers, who started…

  • Adams Financial Concepts,  COVID-19,  Current Events,  Return on Investment,  The Investment Industry

    When Is the Best Time to Sell?

    When is the time to sell and liquidate portfolios? Most advisors, according to a recent study by Howard Schneider of Practical Perspectives[1], says most advisors have seen little impact from the stay at home orders and they perceive the market will return to normal in six months. I have considerable concern. Yes, I am staying the course today and am optimistic that we will be back to normal by the end of this year. But I am not blindly staying the course. Usually, I try to accomplish at least five tasks every day. On March 12th, I spent the entire day on one task and that was to determine when…