Page 31 - Life In Naples March 2022 Flipbook

Insights from Tom Moran,

Founder, Chief Executive Officer,

Senior PIM Portfolio Manager, Moran Wealth Management

ART Iinflation. While there are overt signs that inflation is here, the your situation and pursuit of strategies designed to protect your
Please talk to your Financial Advisor or give us a call to discuss
n my recent conversations with clients, there was one topic
that seemed to be at the forefront of everyone’s mind —
portfolio from inflation. One option is to invest in equities with
question remains if it will stay. At first, the Federal Reserve and
strong dividend history and a healthy balance sheet. Historically,
after
dividends have risen faster than the rate of inflation, acting as a
Jerome Powell insisted that inflation is merely transitory due to
the unwinding of the pandemic. They recently, however, started to
much-needed hedge against inflationary pressure. Many dividend-
DARK change their tune suggesting that inflation may be more persistent. oriented companies are also value stocks, so we anticipate value
In order to evaluate how long inflation is here to stay, we need to
stocks continuing to outperform growth stocks in the short
take a step back and look at why we are experiencing inflation in
and medium-term. When inflation increases above 4%, equities
the first place.
traditionally start becoming less favorable for investors than other
1
asset classes. If this is the case, we recommend clients discuss
Broadly stated, inflation is a sustained rise in prices caused by
more dollars chasing the same amount of goods and services. In
is most appropriate for them. At Moran Wealth, we offer multiple
the depth of the crisis, the Fed provided liquidity to the financial other investment options depending on their situation and what
system and the U.S. government passed truly enormous amounts proprietary Private Investment Management (PIM ®) portfolios
of fiscal stimulus to both companies and the American consumer. that may be appropriate for clients wanting to protect their
t’s the month of March and many outdoor art shows are filling If looking for something to do earlier in the month, the
Those actions prevented a greater economic crisis and enabled assets against inflation. In order to evaluate your portfolio for its
our calendars with things to do on the weekends. This is a Phil Fisher Gallery is featuring a show of works that are “Epic
a rapid recovery. Demand is back—and expected to grow—but sensitivity to inflation, please reach out to set up an appointment
Ireturn to somewhat normal activities, in this time, that has Imagery” and the public is invited to come and view these works
you can’t restart an entire economy overnight. The disrupted with one of our financial advisors.
been “not so normal.” After a hiatus of two years, the art show by Phil Fisher, Jan Ellen Atkielski, Kevin Barton and more.
supply chains and labor shortages are still sorting themselves out,
called “Five Painters & A Potter” is going to happen again. This is Phil Fisher Gallery is located where 8th St S & 12th Ave S
causing wild price movements for goods and commodities such 1 https://www.barrons.com/articles/inflation-is-good-news-
an opportunity to meet and purchase works from six of our long- meet at the flagpole in Old Naples by the Bay, in Crayton Cove.
as used cars, coffee and lumber; shortages for everything from for-stocks-with-high-dividends-51621170002
standing, well known artists in Naples. Phil Fisher, Paul Arsenault,
semiconductors to caramel syrup. Even Dollar Tree is raising their
Jim Rice, Natalie Guess, Tara O’Neill and Rick Wobbe will be
prices on some items above $1. However, this chaos in supply
showing their works of art in a relaxed environment, the way we
chains should eventually calm, restoring a measure of normality to Tom Moran
used to do art events. Joe McNichols & Friends will be providing
the prices of many goods. Chairman Powell likely referred to this Founder, Chief Executive Officer, Senior PIM Portfolio Manager
music during the day and it’s bound to be a good time! It happens
process when he talked about elevated inflation readings being P: (239) 393.8076 | F: 239-431-5239
Sunday March 27th at The Clay Place, 1555 Shadowlawn Dr., Thomas.Moran@MoranWM.com
“transitory.” The elephant in the room is whether the Fed’s actions
Naples from 11:00 AM to 5:00 PM. The public is welcome. www.MoranWM.com
on monetary policy have the potential to create lasting inflation
5801 Pelican Bay Blvd, Suite 110, Naples, FL 34108
that can negatively impact the markets and the broader economy
for years to come.
Equity securities are subject to market risk which means their value may fluctuate in response to general Investing in foreign securities presents certain risks not associated with domestic investments, such as currency
economic and market conditions, the prospects of individual companies, and industry sectors. Investments in equity fluctuation, political and economic instability, and different accounting standards. This may result in greater share
securities are generally more volatile than other types of securities. There is no guarantee that dividend-paying price volatility.
www.GalleriesOfCraytonCove.com www.PhilFisherFineArt.com www.Guess-FisherGallery.com stocks will return more than the overall stock market. Dividends are not guaranteed and are subject to change or disclosure document for a full description of our services. The minimum account size for this program is $50,000.
The PIM program is not appropriate for all investors. Please carefully review the Wells Fargo Advisors advisory
elimination.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC WFAFN).
Moran Wealth Management is a separate entity from WFAFN. 1021-03944
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