Tripp Yates, CFP®, CPA/PFS Eaglestrong Financial

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About Tripp Yates, CFP®, CPA/PFS

Tripp has extensive experience in financial planning and investment management, and he diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families.

Tripp’s interest in investments started when he was young and was intrigued by his grandfather’s savvy investment knowledge. When he realized staying in public accounting was not his ultimate goal, he was excited to take his career in this direction.

His passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, save taxes, and invest wisely. Tripp strives to work in a humble and transparent way.

When he is not managing his firm and his clients, Tripp enjoys spending time with his family, running, and cheering on the Rebels and the Cubs.

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Recently Published

Q2 2020: Stock Market Rebound

July 7, 2020

stock market recovery after coronavirus (covid-19)

 

What a first half of 2020! This year has been a wild ride in so many ways. From forced business shutdowns and school closings in late March and April to mask mandates today, we have all been forced to adapt to a new normal under the ongoing threat of the Coronavirus. After seeing the fastest stock market decline in history from mid-February to late March, we have seen one of the quickest market rebounds through the end of June. For the 2nd quarter1, stocks recovered across the board: (+22%) US, (+25%) US small companies, (+15%) International Developed, and (+18%) Emerging Markets. The US total bond market was positive as well (+3%).  

  

stock market recovery after coronavirus (covid-19)

 

Many have raised the question – How is the market recovering when the economy is still down? It seems logical for the stock market to have not recovered, right? Businesses are not back completely, unemployment is still very high, sports are on hold, and many forms of entertainment outside our homes are non-existent at the moment. However, past history has given us evidence that even though it seems logical, the stock market is not the economy and doesn’t follow it in lockstep. For instance, in 1982 and 2009 even though unemployment was still rising, the US market (S&P 500) was forward-looking with gains of 20%+ in both years as the recession was ending.  

 

1982

 

Unemployment began 1982 at 8.6% and ended the year at 10.8%.

 

The recession started in July 1981 and ended in November 1982.

 

The US market (S&P 500) gained 21.6% in 1982.

 

2009

 

Unemployment began 2009 at 7.7% and ended the year at 10%.

 

The recession started in December 2007 and ended in June 2009.

 

The US market (S&P 500) gained 26.5% in 2009.

 

stock market recovery after coronavirus (covid-19)

 

The stock market is constantly forward-looking. When talk of the impact of the virus and possible shutdowns circulated in late February and early March, the market selloff began. At that point, companies had not lost any revenue but the expectations for the coming months were dire. The worst was feared and implied. One month later in April, even during government shutdowns of businesses, the virus impact was not as bad as feared in the initial projections. In the meantime, the government passed a massive stimulus plan and dramatically lowered interest rates. This combination made the prospects of the near future much better than expected.

 

Now, here we are today amid a cloud of uncertainty with what the rest of 2020 will look like. Another shutdown would most likely lower expectations, earnings, and the stock market. A drug development for vaccine or treatment of the virus would obviously raise short-term expectations. My point is this, in the short-term, surprises of information (good and bad) drive the market on a daily and weekly basis. In the long-term, future earnings and interest rates power the market. Jerome Powell, the Federal Reserve chairman, has indicated that interest rates are going to be low for the foreseeable future. Company earnings will depend on what level businesses are able to function in the days ahead. We will defeat the virus but how long it takes us to do so will be key over the next 6-18 months.

 

Some industries have weathered the virus storm much better than others. Technological advances have allowed many businesses to continue to operate at full capacity.  Online or non-store retail showed 125% of sales in May vs. February while in-store clothing, electronics and furniture were still down. This is no surprise given the current conditions.

 

stock market recovery after coronavirus (covid-19)

 

A recent New York Times article highlighted the importance of watching dentist offices as a barometer on how the economy is recovering. There are no substitutes for the work that dentists do and most treatment requires in-office visits. According to the American Dental Association survey, 77% of dentists had full staff back the first week of June and 18% were partially staffed. It is assumed that most dentist offices received stimulus funds from the government’s Paycheck Protection Program. Therefore, it will be key to see this staffing trend continue in the coming months as those stimulus funds are used up.

 

stock market recovery after coronavirus (covid-19)

 

Due to continued economic uncertainty caused by the virus, the level of cash in money market funds is at an all-time high near $5 trillion. With interest rates near zero, those with cash will ultimately be forced to spend or invest the money. Many believe this is only further indication that can and will drive the market higher in the future as opportunities and confidence evolve. 

 

stock market recovery after coronavirus (covid-19)

 

We often look at history to provide a guide for the future. Even still, there are no guarantees in investing, especially in the short-term. However, it is interesting that since 1950 whenever we had a quarterly gain in the US stock market (S&P 500) of 15% or more like we just experienced, the following quarter has been positive every time with an average of +9.5%. We cannot know the impact of the virus over the next 6 months and that will most likely be the biggest factor, but historical evidence is fascinating nonetheless.

 

stock market recovery after coronavirus (covid-19)

 

As we enter the third quarter of 2020, many questions remain unanswered. What will school and business look like this fall? How will the elections turn out? Those questions will be answered at the appropriate time. The truth is there have always been and always will be many questions. We cannot know the future no matter how comfortable and confident we feel at a given moment. What we do know is that investing over the long-term with the appropriate asset allocation to achieve goals has and will continue to reward investors.    

 

stock market recovery after coronavirus (covid-19)

    

If you would like to discuss or learn more, schedule a call or meeting with me using the link below:  

Tripp Yates, CPA/PFS, CFP®

901.413.8659  gevcc@rntyrfgebat.pbz

 

Tripp’s passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, reduce taxes, and invest wisely. As a fee-only fiduciary advisor, Tripp strives to work in a humble and transparent way.

 

With extensive experience in financial planning and investment management, Tripp diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families. In 2017, he founded Eaglestrong Financial, specializing in helping dentists and business owners. Outside of work, Tripp enjoys running, spending time with his family, and cheering on his favorite sports teams. He is an active member of Harvest Church. 


 

References

  1.  2nd quarter 2020 stock market returns: US – Russell 3000 Index, US small companies – Russell 2000, International Developed – MSCI World ex US, Emerging Markets – MSCI Emerging Markets. 

https://www.federalreservehistory.org/essays/recession_of_1981_82#:~:text=By%20October%201982%2C%20inflation%20had,Federal%20Reserve%20Bank%20of%20St.

 

https://www.morningstar.com/articles/982525/the-stock-market-is-not-the-economy

 

https://www.federalreservehistory.org/essays/great_recession_of_200709

 

https://www.bloomberg.com/opinion/articles/2020-06-09/stock-market-has-almost-always-ignored-the-economy

 

https://www.nytimes.com/2020/05/10/business/stock-market-economy-coronavirus.html

 

https://www.cnbc.com/2020/07/03/handicapping-the-market-from-here-what-history-tells-us-about-the-odds-the-comeback-continues.html?__source=twitter%7Cmain

 

@RyanDetric

 

Dimensional Fund Advisors 

 

 

 

Disclaimer

 

Eaglestrong Financial, LLC is a Registered Investment Advisor offering advisory services in the states of TN and MS and in other jurisdictions where exempted. The information contained herein is not intended to be used as a guide to investing or tax advice. This material presented is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Past performance is no guarantee of future results.

 

 

#eaglestrong #eaglestrongfinancial

 

 

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Q1 2020: Uncertain times

April 7, 2020

 

The 1st quarter of 2020 brought on a pandemic health crisis, shutdowns in economic activity, and swift stock market declines. The uncertainty surrounding the impact and length of COVID-19 continues to affect our way of life. Shelter in place orders have been issued across the country closing most businesses until the threat of the virus spread subsides. Unemployment claims skyrocketed as expected.

 

The US and global stock markets fell into bear market territory (greater than 20% decline) quicker than we have ever seen. Stock market declines were seen across the board through the end of the quarter 1: (-21%) US, (-31%) US small companies, (-23%) International Developed, and (-24%) Emerging Markets. The US total bond market was positive (+3%).

 

coronavirus COVID-19 and the stock market

 

At first glance, we compared COVID-19 to viruses and outbreaks of the recent past. It is clear now that this one is much different. I don’t believe anyone alive today could recall a time period over their lives like the one we are living right now. Today is certainly different for our way of life and health, the economy, and the financial markets. But, event shocks to our country and financial system have always been new and different when they occur. Whether war, terrorist attacks, or the credit crisis that led to the Great Recession in 2008, we endured.

 

During the current market downturn, it is important to look at history as a guide. The future in financial markets does not always go exactly according to the past, but there is usually rhythm. Well-known investor Sir John Templeton said it best “The four most dangerous words in investing are: ‘This time it’s different.’ ”

 

coronavirus COVID-19 and the stock market

 

Bull (20% advance from market bottom) and bear (20% decline from market top) markets have been a part of our investing history. While bear market declines bring frustration and anxiety, they have always been overshadowed by the eventual advance in size and length of bull markets. This very reason is what drives long-term investment returns.

 

Uncertainty in the short-term has led to higher long-term investment returns. That is why stocks have outperformed bonds and cash over history. Investors are ultimately paid for taking risk and staying the course through market downturns. Allocations to bonds and cash allow more stability during times of decline such as what we are experiencing now. That is why asset allocation to achieve your goals is so important.

 

coronavirus COVID-19 and the stock market

 

The biggest question right now is when will this end? When will the pandemic subside? When will the economy and the markets recover? No one knows for sure, but most likely the financial markets will start recovering before all is clear. The markets are forward looking. In the last week of March, we saw a 15% rebound in the US (S&P 500) and World (MSCI World) stock markets 2. No one expected this. We could most certainly see further declines but this is why staying the course with your investments is so important so that you capture the market returns when they occur. Over the last 30 years, if you just missed the best 25 days in the US stock market, your annualized investment return would have been cut in half (5% instead of 10%). $1,000 would be worth $4,314 instead of $17,273 if you had stayed invested.

 

coronavirus COVID-19 and the stock market

 

Usually, big market down days are followed by big market up days. We saw that many times in the month of March. Right now, worst case scenarios are the main topic in the news. What happens if a drug is approved or vaccine developed to stop the virus? The common thought is that this will take time but we do not know for sure. It is evident that all medical researchers and pharmaceutical companies are working tirelessly to come up with a solution. We should know in the coming weeks if the shelter in place measures have had a positive effect on slowing the spread.

 

US stock market returns have produced average annual returns of 9.6% over history. Following declines of 20% or more (bear market) like we have just experienced, annualized returns have been higher 1 year (+14.2%), 3 years (+11.6%), and 5 years (+11.8%) later.

 

coronavirus COVID-19 and the stock market

 

Famous investor Warren Buffet once said, “The stock market is a device for transferring money from the impatient to the patient.” While we cannot know for sure how long the current downturn will last, it will pass. Investing and sticking with a diversified portfolio will continue to drive long-term investment returns to achieve goals. 

 

    

If you would like to discuss or learn more, schedule a call or meeting with me using the link below:  

Tripp Yates, CPA/PFS, CFP®

901.413.8659  gevcc@rntyrfgebat.pbz

 

Tripp’s passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, reduce taxes, and invest wisely. As a fee-only fiduciary advisor, Tripp strives to work in a humble and transparent way.

 

With extensive experience in financial planning and investment management, Tripp diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families. In 2017, he founded Eaglestrong Financial, specializing in helping dentists and business owners. Outside of work, Tripp enjoys running, spending time with his family, and cheering on his favorite sports teams. He is an active member of Harvest Church. 


 

References

1. 1st quarter 2020 stock market returns: US – Russell 3000 Index, US small companies – Russell 2000, International Developed – MSCI World ex US, Emerging Markets – MSCI Emerging Markets.

 

2. Total returns from 3/24/20 – 3/31/20: US S&P 500 (+15.6%), MSCI All Country World Index (+15.3%). 

 

 

 

Disclaimer

Eaglestrong Financial, LLC is a Registered Investment Advisor offering advisory services in the states of TN and MS and in other jurisdictions where exempted. The information contained herein is not intended to be used as a guide to investing or tax advice. This material presented is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Past performance is no guarantee of future results.

 

 

#eaglestrong #eaglestrongfinancial

 

 

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Payroll Protection Program

March 29, 2020

Coronavirus Emergency Loans Payroll Protection Program

 

Excellent steps from the US Chamber of Commerce for small business owners to take to obtain an emergency loan in the Paycheck Protection Program. Independent contractors included as well.

  

Tripp Yates, CPA/PFS, CFP®

901.413.8659  gevcc@rntyrfgebat.pbz

 

Tripp’s passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, reduce taxes, and invest wisely. As a fee-only fiduciary advisor, Tripp strives to work in a humble and transparent way.

 

With extensive experience in financial planning and investment management, Tripp diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families. In 2017, he founded Eaglestrong Financial, specializing in helping dentists and business owners. Outside of work, Tripp enjoys running, spending time with his family, and cheering on his favorite sports teams. He is an active member of Harvest Church. 


 

References

https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final_revised.pdf  

 

 

 

Disclaimer

Eaglestrong Financial, LLC is a Registered Investment Advisor offering advisory services in the states of TN and MS and in other jurisdictions where exempted. The information contained herein is not intended to be used as a guide to investing or tax advice. This material presented is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Past performance is no guarantee of future results.

 

 

#eaglestrong #eaglestrongfinancial

 

 

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Ideal Clients

  • Business Owners
  • Dentists
  • Gen X

Ways Advisor Charges

  • Monthly Fee
  • Flat Fee
  • Assets Under Management

Fee Options

  • Monthly Fee: $200+/month
  • Flat Fee: $500+ one-time packages
  • AUM: 1%

SEC Records

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