Bandwidth – the first I can remember this being used was in the late ‘90s, when fiber optic cable was compared to copper lines, and it described the ability of the medium to carry information. Now, it seems to describe one’s capacity for additional work (of course, additional work.)

Circle back – a classic, although submitters forgot to include its close cousin “loop in.” I literally received two emails on March 6 that included these two gems. In the first, the sender said he would “loop in” Sam, who replied that he would “circle back.” Translated, “circle back” means that someone will respond or otherwise follow-up on something, while “loop in” just means to include.

Deep dive – the submitter said, “oh, really? Not investigate, study, discern, discover, find out about, look into? You had to go with ‘deep dive.’ “ I love the submitter’s submission but hate the phrase. Just use normal words.

Lean in – popularized, I think, by Sheryl Sandberg, this one really gets my blood boiling–I know…blood boiling? They’re just words, but for me, it gets worse: change “in” to “into,” and one unlocks a whole panoply of annoyances.

• Lean into
• Speak into
• Pray into
• Invest into
• Pour into
• Step into
• Plug into
• Dive into

Reach out: [verbatim from the submitter] This phrase sounds so overblown. “Reach out to Bob in accounting” seems to imply some level of difficulty, like you’re trying to get a personal reply from Taylor Swift or something, when it may just be a matter of walking up to Bob’s cubicle on the other side of the building.

Space – The equity space. The beauty-supply space. The intellectual-property space. The media space. From the submitter: They’re not spaces, they’re sectors or industries. Spaces are well-defined and venerable terms in physics and math. If you don’t know what “phase space” or “vector space” is, then stay away! And if you do know, then don’t consign “space” to jargon space.

Unpack that: “In other words: Deal with it now. It’s so overly consultant-speak cringey that I can clearly picture a corporate off-site meeting about to go into breakout sessions. The consultant is at the front of the room with a flip-chart indicating tabletop topics and instructions. Ugh, pure torture.”

I’m sure you have your own phrases you hate. You can ping me on LinkedIn and/or add yours to the Comments section. To piggyback on that , you can go to our website, where I designed a buzzword bingo generator app. You can play it online during your next company meeting or download and print a bingo card. The only catch is that you first have to enter your email address so we can send you our infrequent company emails where we dispense with jargon. (You can also immediately unsubscribe, too.)

The post The Corporate Jargon We Hate the Most appeared first on Strategence Capital.

With a daughter getting married in a week, I thought it was timely to send out this helpful guide for newlyweds. Click the image above for the priceless scene from “The Princess Bride.”

The post Issues to Consider for Newlyweds appeared first on Strategence Capital.

The gap that Morningstar wants you to mind is the gap between fund returns and investor returns. The gap arises when investors take action in their investment portfolios.

For example, take an investor in one of the more–if not most–popular technology-heavy funds, the Invesco QQQ Trust, which tracks the performance of the NASDAQ 100 index, pictured below. The fund return is the return of the fund, based on an investment at the beginning of a time period. The investor return, on the other hand, reflects the investor’s investment decisions in the fund, like freaking out over the Tariff Tantrum in April, bailing out, and getting back in later.

The good news about the study is that the gap has narrowed over the time that Morningstar has been doing the study. Based on 2024 data, the gap was 1.2%. Over 2019-2021, the gap was 1.5%+.

The report looks at the gap across different types of funds, from municipal bond funds to international funds to sector (i.e. non-diversified funds.) Not surprising to this author, the biggest gap is in the Sector Equity funds, where it averaged 1.5%. These are common used by market-timing stock jockeys. On the other end of the spectrum are the Allocation and Alternative funds; both at 0.1%.

1.2%…as Ted Lasso might say, “big whoop!” Compound that 1.2% over ten years or longer and pretty soon it’s real money–assuming the gap doesn’t revert to its wider levels, as shown below.

Invested over ten years with a 10% return per year, $100,000 grows to $259,000

Earn 1.2% less each year, and $100,000 grows to $232,000, 10.4% less

Invested over 20 years with a 10% return per year, $100,000 grows to $673,000

Earn 1.2% less each year, and $100,000 grows to just $540,000, 19.8% less

This fits well with our investment philosophy of long-term asset allocation along with periodic rebalancing, ignoring noise along the way. In a formula, it’s…

Strategic Allocation + Rebalancing – Noise

We’d love to talk with you about it. You can contact us at info@strategencecapital.com.

The post Morningstar’s 2025 “Mind the Gap” Study appeared first on Strategence Capital.

Moody’s recent decision to downgrade the U.S. credit rating from Aaa to Aa1 officially ends America’s top-tier debt status across all major rating agencies. This move follows similar actions by Fitch in 2023 and Standard & Poor’s in 2011, reflecting mounting concerns about the nation’s fiscal direction. As Congress navigates budget negotiations that could further expand annual deficits, investors are questioning how these developments might affect their portfolios and long-term financial strategies.

Budget negotiations have historically created periods of uncertainty

Throughout the past fifteen years, budget standoffs and debt ceiling debates have generated considerable market volatility. Notable examples include the 2011 S&P downgrade, the 2013 fiscal cliff, and various government shutdowns. Despite the initial market disruptions, agreements were ultimately reached in each case, allowing markets to stabilize and continue their upward trajectory.

Even following the unprecedented 2011 downgrade that triggered a market correction, the S&P 500 achieved full recovery within months. Remarkably, U.S. Treasury securities continue to function as safe-haven assets during volatile periods, maintaining their role as a cornerstone of global financial markets despite these rating downgrades.

Tax Cuts and Jobs Act provisions are on track to be extended or made permanent

Congress is currently developing a comprehensive budget bill to extend individual tax cuts from the TCJA, which would otherwise expire at the end of 2025. This initiative aims to prevent a potential “tax cliff” scenario where rates would revert to pre-TCJA levels, potentially disrupting economic stability.

The proposed package includes significant provisions for both individuals and businesses. Individual benefits encompass permanent TCJA tax rates with a 37% top rate, an increased child tax credit of $2,500 through 2028, and potential SALT deduction cap adjustments. Business provisions feature an enhanced pass-through deduction of 23%, reinstated 100% bonus depreciation, and restored research and development tax deductions.

Deficits may continue to add to the debt

While the current proposal incorporates approximately $1.6 trillion in spending reductions through program modifications, these cuts are overshadowed by tax reductions and increased spending in other areas. The national debt already exceeds $36 trillion, representing roughly $106,000 per American, and the proposed budget could add an estimated $3 trillion or more over the next decade.

The persistent growth of national debt reflects the political challenges of reducing spending on mandatory programs like Social Security and Medicare, which consume most federal expenditures. However, markets have historically performed well across varying levels of government debt and deficit spending. Interestingly, some of the strongest market returns over recent decades have occurred following periods of significant deficits, as these often coincided with economic downturns when markets were at their lowest points.

While deficit and debt levels represent important long-term economic considerations, their immediate market impact should be viewed in proper context. A disciplined investment approach focused on diversification, fundamental analysis, and long-term objectives remains more effective than making portfolio decisions based on fiscal headlines or hoping for Congressional deficit solutions.

The bottom line? The U.S. credit rating downgrade reflects legitimate concerns about America’s fiscal trajectory, and current budget negotiations may exacerbate these challenges. However, historical evidence suggests that investors are best served by maintaining their long-term investment strategies and staying committed to their financial plans.

OneAscent Financial Services, LLC (“OAFS”), d/b/a Strategence Capital, is a registered investment adviser with the United States Securities and Exchange Commission. OAFS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by OAFS or any unaffiliated third party. OAFS is neither an attorney nor accountant, and no portion of the presented content should be interpreted as legal, accounting, or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Clearnomics is not affiliated with OneAscent Financial Services, LLC or Strategence Capital.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

No strategy assures success or protects against loss. Investing involves risk including loss of principal.

The post Understanding the U.S. Credit Downgrade and Its Impact on Investors appeared first on Strategence Capital.

In the former category, I was able to get an itinerary for a five-day anniversary trip, based on the interest I shared. It can also help to spark creativity. One way I’ve been using it lately is to figure out Excel formulas and otherwise get help with software tools. In the latter category, I’m worried about deepfakes, where someone can be convincingly imitated, even to the point of a video image. While AI can spark creativity, it can also stifle it, sometimes to our own detriment (think of a student who “writes” a term paper either the help of AI; the opportunity to improve one’s skills is lost.)

To keep abreast of developments in AI, I am subscribed to two daily emails. Sign-up links to both are below.

• The Neuron
• AI Valley

Both tell me the latest developments, and while many don’t apply to me, some do. I recently added Napkin and Gamma to my list of go-to sites when I need to illustrate a concept or to get started on a presentation.

Recently, however, The Neuron featured a troubling use of AI. In it, the newsletter featured a story of two college students who used Meta’s Ray-Ban glasses, which feature an inconspicuous camera, to identify whoever they were looking at to identify them. They then approached strangers on a subway and elsewhere and ask them if they were so-and-so or to ask if their address was such-and-such .

Here’s an excerpt from the newsletter.

Here’s what happened: students Anhphu Nguyen and Caine Ardayfio cooked up an app called I-XRAY that turns these Ray-Bans into a doxxing machine. We’re talking name, address, phone number—all from looking at someone with the glasses.

Here’s how it works:

The Ray-Bans can record up to three minutes of video, with a privacy light that’s about as noticeable as a firefly in broad daylight.

This video is streamed to Instagram, where an AI monitors the feed.

I-XRAY uses PimEyes (a facial recognition tool) to match these faces to public images, then unleashes AI to dig up personal details from public databases.

Click here to see what happened when they used the technology on strangers. Fortunately, they’re not releasing the app , just showing how easy it was to do .

They also suggest you opt out of the following services, using the links provided.

• PimEyes
• FaceCheck.ID
• FastPeopleSearch
• Instant Checkmate

I don’t know how this strikes you. For me, I’m reminded that tools can be used for good or ill, and that we need to be careful. The phrase, “what hath God wrought,” from the book of Numbers 23:23, which was the first message sent over telegraph, comes to mind. Maybe you prefer Eugene Peterson’s version from The Message, which says, ‘“What a great thing has God done!” Either way, the verse is badly taken out of context.

The post A Troubling Use of AI and How to Protect Yourself appeared first on Strategence Capital.

How can that be?

Timing.

Basically, most investors buy high and sell low—or at least they tend to. A good financial advisor can help counter this impulse.

A note for the curious (and Enneagram 5s)…

The phrase “mind the gap” originated in the London Underground (also known as the Tube) rail system. It was introduced in 1969 as a warning to passengers about the space between the train door and the station platform. (source: claude.ai).

In the 2024 study, Morningstar found that the average fund return was 7.3%, while the average investor’s return was 6.3%, a 1% gap, but a 13% (7.3% to 6.3%) reduction in return. According to Morningstar, “the 1.1% “gap” is explained by the timing of investors’ purchases and sales of fund shares.” Morningstar drilled down further and found that certain types of funds had different gaps. Allocation funds, those that invest in a mix of assets, say, stocks and bonds, had the lowest gap, at 0.4%. Sector funds—think of a fund invested just in technology stocks—had the widest gap, at 2.6%.

Of the last ten years studied—each study has covered the previous ten years—2020 was the worst. Morningstar found that, “investors particularly struggled to navigate 2020’s turbulence, adding monies in late 2019 and early 2020, then withdrawing nearly half a trillion dollars as markets fell, only to miss a portion of the subsequent rally.”

Does this describe you?

We find that this illustration describes investor behavior well—and we understand it well.

It’s easy and feels good to invest when markets do well. We enjoy logging on to see rising account values, and the opposite is true. The easy thing to do when markets decline is to sell investments, to not look at updated account values.

But this may cost you. We think a better solution is to find a mix of investments (asset allocation) that is likely to help you reach your long-term goals and to periodically rebalance to that asset mix. Between rebalances, ignore the stories that produce fear or greed in you (noise.) We have an easy formula for this.

Click here to schedule a time to talk to us about this.

OneAscent Financial Services, LLC (“OAFS”), d/b/a Strategence Capital, is a registered investment adviser with the United States Securities and Exchange Commission. OAFS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by OAFS or any unaffiliated third party. OAFS is neither an attorney nor accountant, and no portion of the presented content should be interpreted as legal, accounting, or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

The post Mind the Gap appeared first on Strategence Capital.

Well, you can—sort of. One of the founders of Long Term Capital Management, which got vaporized when some sure-bet trades blew up in the ‘90s, came up with a tool to let you try your luck. (By the way, at least two of the financial advisors coming to work at Strategence Capital every day, including me, were in this business when that happened.) It seemed he learned his lessons back then and today espouses an investment approach very similar to ours.

Here’s how it works. The site presents you with actual but random pages from the Wall Street Journal, with important parts redacted, but the twist is you get to see it two days before it’s published. You decide how to invest $1 million. Each day you can decide whether to go short (sell) or long (buy) stocks or bonds. You can trade or decide not to trade. Then, your portfolio goes up or down based on the markets’ results.

As of October 10, “more than 8,000 mostly financially savvy players had taken a crack at the game. Their median ending wealth after 15 rounds was just $687,986,” according to an article in the Wall Street Journal.

Here is where you can go to try your luck: https://elmwealth.com/crystal-ball-challenge/.

Take a screen shot of your results, send them to me, and I’ll share mine with you.

This is another example of the real-world thought laboratory that I like to present to overconfident investors:

Imagine you have a crystal ball at the end of 2019, and you know that in the next year, the world is going to experience COVID; the Presidential election is going to be contested; and the Capital is going to be stormed. Do you think stocks would be a good investment?

For those who did nothing, the answer was yes. I continue to maintain that a vital component of successful investing is humility.

OneAscent Financial Services, LLC (“OAFS”), d/b/a Strategence Capital, is a registered investment adviser with the United States Securities and Exchange Commission. OAFS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by OAFS or any unaffiliated third party. OAFS is neither an attorney nor accountant, and no portion of the presented content should be interpreted as legal, accounting, or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

The post Do You Want to Try a Crystal Ball? appeared first on Strategence Capital.

The first list is the more important of the two. It lists six important documents you need to have.

Document #1 – HIPAA release form

As you probably know, when your child turns 18, you, as a parent, lose access to their medical records.

With a universal HIPAA form, parents can do something as simple as obtain a copy of U.S. lab work results for a child on an overseas program. It can also be important for situations when parents are far away and need information on their child’s care. A universal HIPAA isn’t limited to a single provider; it’s not the same form your young adult may have signed at an individual doctor’s office.

The article recommends checking out the American Bar Association’s sample form.

Document #2 – Healthcare proxy

This is the document that lets a parent make medical decisions on behalf of an incapacitated adult child. The article cites the example of a parent whose son was admitted to the ER and ended up needing a spinal tap . She promptly got the healthcare proxy afterward. The article says these can be found online or obtained from an attorney. AARP maintains free, state-specific healthcare directives on its site here.

Document #3 – Living will

Next the article goes to a topic we’d all like to avoid, but which we can’t. Your child needs a living will to dictate what level of life-sustaining care they will be given, such as ventilator, feeding tube, etc . Sadly, you need to know what to do in a life-or-death situation–and you need to honor your child’s [last] wishes. Again, AARP to the rescue (same website as above.)

Document #4 – Durable power of attorney for finances

If your child is hospitalized, someone needs to continue to pay his or her bills, like rent and car loans. While you might be able to do this if you have passwords to your child’s financial accounts. The article says that that might even violate “a provider’s terms of service.”

Having a durable power of attorney can be a way to step in and help without having to seek judicial permission to act on the child’s behalf. There are different kinds of financial powers of attorney, and laws vary by state, so families should consult an attorney about what works best for their situation. And there are varying schools of thought about how much authority a young adult should give to a parent. Some durable powers of attorney take effect only in cases where the child is considered disabled due to reasons such as mental illness, physical illness or chronic drug use. Others take effect immediately upon signing.

Document #5 – Health insurance

While young adults typically can stay on their parent’s health-insurance plan until they are 26 years old, some families, for cost or other reasons, may choose to purchase a school’s insurance plan instead. In these cases, parents might want to consider having access to the plan if they want information on billing and coverage.

Document #6 – FERPA waiver

Even if you’re paying your child’s tuition, you have no access to their academic records, including disciplinary records. For all of that, you’ll need a FERPA waiver. Check with the school for its version of the form.

For a more interesting list but one that might not be as critical, continue reading. This is the list of college survival gear.

Item #1 – Laptop sleeve

Get one to protect your child’s laptop, which you probably bought for them. The article recommends the Nillkin Laptop Sleeve, which it says, “will repel water and shield a computer from an accidental knock off the table.” This model also doubles as a laptop stand. Visit Nillkin.com.

Item #2 – Shower tote

I think it’s super nasty to be standing barefoot on the same concrete floor 100 other people just stood on. That’s just gross, so a pair of flipflops might be handy. The WSJ suggests a tote to haul all the stuff down the hall way to the nasty shower area. They recommend the Room Essentials Mesh Caddy from Target.com.

Item #3 – Your mother

Actually, not your mother – that would be great…or maybe not. Instead of your mom saying, “now, just retrace your steps. Where did you set it down,” you can just buy Apple Airtags so later you can find where you left your keys or other vital items. Go to Apple.com to buy a set.

Item #4 – A computer dongle

While Apple gear is clearly superior to Windows gear, not everyone agrees, and you may be forced to use something more primitive than USB-C. For that, you need a USB adapter, such as the Anker 55 USB-C Hub, which is available at Anker.com. I can’t vouch for this particular one, but I have an Anker hub connected to my MacBook Pro now.

Item #5 – An online organizer

The article suggests using Notion, which is recommended by a current college senior. It’s one of many apps that can help organize your life. These apps blur the lines of spreadsheet/database/Trapper Keeper (remember those?)/ etc. I try to stick to one thing because I know I’m subject to shiny object syndrome, where I want to try the latest tech stack. I stick with Todoist and a short list of other tools. Both Notion and Todoist offer free versions.

Item #6 – Mattress topper

I attended college while living at home where I had a very nice mattress–and an excellent laundry service–but a bad mattress is miserable. The article recommends the Sleepyhead Copper Mattress Topper from Sleepyheadusa.com. The tagline of its website is “Mattress toppers for dorm comfort,” so they might know what they’re talking about.

The post Stuff You Need When Your Child Goes to College appeared first on Strategence Capital.

What is a Roth IRA conversion?

Why should you think about making one?

• Income tax rates, themselves, could go up. We put together a blog post showing the income tax brackets going back to the inception of the income tax, which shows that tax rates are as low as they have been since World War II.
• In addition, our national debt continues to rise, and some day it’ll have to be paid back—likely from income taxes.
• It could also be the result of your income being higher in the future. For example, you will be required to begin withdrawing from your traditional IRA at age 73, which may push your income higher.

How does a Roth conversion work?

What are the drawbacks of a Roth conversion?

Unlike IRA contributions, which can be made until the tax filing deadline, Roth conversions must be completed by year end, so time is starting to become of the essence.

The post Have You Considered a Roth IRA Conversion? appeared first on Strategence Capital.

Takeaway #1

Typically, markets experience 4.5 corrections per year, as evidenced by the chart below.

Takeaway #2

Despite corrections and volatility, in general, the stock market, as measured by the Standard & Poor’s 500, has positive calendar year returns. In the chart below, the red dot below each bar represents the biggest loss suffered during each year. The blue bar shows the total return for the year. So, for example, in 2020, the market was down by 34% (red dot) at its worst but finished the year up 18% (blue bar.)

Takeaway #3

Corrections are one thing, bear markets (declines of 20% or more) are nasty. They can make us wonder if stocks were ever a good thing to invest in. They make investors sell and make ill-timed dashes for cash. They pale, however, both in intensity and duration to bull markets. The average bear market (since 1956) has lasted 14 months, with a peak to trough decline of 36%. In contrast, the average bull market lasts 5 years 9 months and returns 192%.

So, yes, a correction is coming, but we don’t know when—and here’s Takeaway #4—neither does the person on television or the smartest person on Wall Street.

We encourage you to stay invested through all markets. One way to help you remain invested is to have a portfolio appropriate to your ability to accept risk. We can help you determine that portfolio is you head over to Riskalyze and determine your risk number. Click here to do that. We’ll follow up with you.

Content and opinions voice in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.

The post A Market Correction is Coming appeared first on Strategence Capital.