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Home2018-05-14T12:08:11-04:00

The Global Market Update is curated by Douglas Tengdin, CFA an employee of Charter Trust Company.
The opinions expressed herein are those of the author and do not necessarily represent the views of Charter Trust Company.
Investments may involve investment risk, including the possible loss of value.

Keeping Our Options Open (Part 2)

By |June 25th, 2019|

Can we use options to invest? Illustration: Koltepranita. Source: Wikipedia Options are powerful. And there’s a lot to understanding them. Call options give us the right, but not the obligation, to buy something at a specific price within a certain time. They don’t cost as much as the underlying stock, but they benefit just as much when the price goes up. As a result, [...]

Keeping Our Options Open (Part 1)

By |June 21st, 2019|

What are options? Source: Pxhere. CC0 Strictly speaking, options are choices: the choice to buy, sell, or hold; the choice own or rent a home; the choice of what to plant in the garden. Having options means we have the ability to make – or not make – choices about our lives. Financially, though, options have a very specific meaning. An option on a stock [...]

Window Dressing

By |June 21st, 2019|

It’s almost quarter-end. Do you know where your sales are? Photo: Birgit Böllinger . Source: Pixabay When quarter-end rolls around, everybody wants to make things look nice. But new flowers in the window boxes won’t change the rot that may be hiding in the window casings. At quarter-end, many public companies try to dress up their financials. They increase the amount of cash on [...]

Getting There

By |June 20th, 2019|

What do you want to do when you retire? Photo: Lukas Taleb. Source: Picjumbo. Lots of folks have plans for what we want to do when we retire. It could be spending time with children, it could be travel, it might be settling into that dream-cottage by the lake or beach. While it’s good to have dreams, it’s just as important to have plans. And [...]

The Superstar Syndrome

By |June 19th, 2019|

Do you believe in superstars? Michael Jordan in 1997. Photo: Steve Lipofsky. Source: Wikimedia. CC-BY-4.0 In basketball, a lot of fans focus on the stars, and with good reason. For the past 35 years, 11 players with multiple championships have accounted for 32 of the of those titles – over 90%. That’s unlikely to be a random happenstance. Whether it’s by providing [...]

The Culture Code

By |June 17th, 2019|

Does leadership matter? Public Domain. Source: Flikr. Of course, it should. In the long run, a culture centered on client service and financial accountability will produce higher financial returns; by contrast, a culture with outsized rewards for managers who treat the firm like a personal piggy bank creates lower returns. But how do we measure leadership? One way is by reading the company’s annual [...]

The Primacy of Planning

By |June 14th, 2019|

Psst. Got any hot stock tips? Photo: Viktor Hanacek. Source: Picjumbo. CC0 Lots of people want advice about what stocks to buy or what the market will do. But what they really need is guidance on how to plan out their finances. Classically, finance has three major reports: income, assets, and cash flow. Each of these areas has inflows and outflows—positive and negative entries. An [...]

Shaky Legs

By |June 12th, 2019|

This is the time of year the baby fawns start come out. Photo: Bryan Hanson. Source: Morguefile. Fawns are adorable. They gambol and play and remind us of the cycle of life. But they’re shaky on their new feet. Like everything that starts fresh, the first few steps can be unsteady. In this, they’re a lot like small companies. Small stocks are a lot more [...]

Investing for the Future

By |June 12th, 2019|

What is an investment factor? Photo: PublicCo. Source: Pixabay. CC0 Investment factors are a way to understand why stocks or bonds perform the way they do. Investments can be classified by the kinds of risks they take. Bond returns are driven by duration, credit, prepayments, the yield curve, and – for global portfolios – currency risk. Stock returns are affected by company size, industry, quality, [...]