Why Is Gold Going Up?

Gold is making headlines in 2020, as its performance leads most other asset classes year-to-date and investors are starting to take notice. In particular, Warren Buffet’s recent purchase of a gold mining stock has caught the attention of the media. Those who only think of gold as a “safe-haven” investment have been surprised by its strong performance even as the stock market rallied from its March low. But fundamentally, we believe that gold is not an investment at all. Instead, it’s just another form of money like the U.S. dollar or the Euro. So, if it’s not an investment, what’s driving this big rally in gold? While the answer can be complex, we’d argue that there are two main areas on which to focus when it comes to understanding the price of gold: the money supply and investor sentiment.

Read the full article by clicking the image below.

 

Mid-Quarter Newsletter – August 2020

Our Investment Philosophy

The last several months have been extraordinary to say the least and there are still so many unknowns in terms of the financial markets, our economy, and what our world will look like post-pandemic. As a firm, we have undoubtedly adapted how we communicate with our team, other business professionals, and our clients. Throughout all of these changes, the element of our business that has stayed consistent is our investment philosophy. At Morton Capital, we’ve always taken a different approach to investing—one that we believe is the best way to provide the returns our clients need for their lifestyle while trying to protect them from the swings of the market. Our beliefs have remained the same since our founder, Lon Morton, started our company almost 40 years ago and we take great pride in carrying on his legacy.

As we continue to communicate virtually, our Investment Team recently created a video that speaks to how we design portfolios to help our clients get the most life out of their wealth. Watch the video to meet the team and learn a little more about us.

Watch our Investment Approach Video here.

 

Financial Advisor Success Podcast & RIA White Paper
Featuring our COO, Stacey McKinnon

Our Chief Operating Officer, Stacey McKinnon, was featured on a recent episode of Michael Kitces’s Financial Advisor Success Podcast. Michael is a well-known speaker, writer, and editor in the financial services industry. In the episode “Scaling an Advisory Firm by Finding New Talent Outside the Financial Services Industry,” Stacey and Michael talked in-depth about how Morton has grown and evolved as a firm in recent years. Stacey touched on our culture of trust initiative in 2017, our non-traditional approach to hiring talent from outside the industry, and the way we’ve restructured our compensation model.

Stacey also co-authored an RIA white paper with the CEO of PFI Advisors, Matt Sonnen, called “The New RIA Workplace.” The industry report explores the changes firms have had to make to their businesses since stay-at-home orders began. It also shares the pros and cons of both office and remote work environments, how leaders and managers are maintaining company culture during these times, and what the office of the future could look like.

Click here to listen to Stacey’s podcast with Michael Kitces and read the RIA White paper here.

 

Why Is Gold Going Up?

Gold is making headlines in 2020, as its performance leads most other asset classes year-to-date and investors are starting to take notice. In particular, Warren Buffet’s recent purchase of a gold mining stock has caught the attention of the media. Those who only think of gold as a “safe-haven” investment have been surprised by its strong performance even as the stock market rallied from its March low. But fundamentally, we believe that gold is not an investment at all. Instead, it’s just another form of money like the U.S. dollar or the Euro. So, if it’s not an investment, what’s driving this big rally in gold? While the answer can be complex, we’d argue that there are two main areas on which to focus when it comes to understanding the price of gold: the money supply and investor sentiment. Read the Full Article here.

 

A Conversation About Change with Chris Galeski
Featuring Retired PGA Tour Player Peter Tomasulo 

Chris Galeski, Wealth Advisor and Partner at Morton Capital, speaks with Peter Tomasulo, retired PGA Tour player and Director of Investor Relations at Lyon Living. In this 30-minute video interview, they reflect on their former sporting careers, life lessons, family, and the triggers and milestones that opened the door for transition and career change.

 

Watch the video!

Scaling An Advisory Firm By Finding New Talent Outside The Financial Services Industry, hosted by Michael Kitces featuring Stacey McKinnon

Michael Kitces sat down with our own Stacey McKinnon on his Financial Advisor Success podcast to discuss:

  • Morton’s non-traditional approach to hiring talent from outside the financial services industry to grow and scale. How Stacey has developed hiring practices to spot talent from outside the industry.
  • The in-depth interview process that Morton Capital uses to evaluate both prospective job skills and culture fit over a series of five to six meetings, and the career track that Morton has created to give everyone in the firm upward mobility to grow their careers over time.
  • The growth and evolution of Morton Capital itself as a multibillion-dollar RIA. The way the firm restructured its compensation away from traditional revenue-based approach to better align everyone on the team, the way Stacey helped the firm reduce the tendency to micromanage as the business grew by helping everyone across the firm build stronger relationships and what they dubbed a year-long culture of trust initiative, and how the Morton team now structures its weekly firm-wide education sessions every Thursday morning.

Be sure to listen to the end, where Stacey shares the challenge she faced in her own career journey when she had to decide whether to pursue an advisory or operations path, why the word “because” is so crucial in leadership conversations, and why Stacey believes the key to future success for advisors isn’t simply about finding a niche or specialization, but immersing yourself into a community of people that you can serve and with whom you have shared beliefs.

To access the show’s notes or read the transcript please click here.

About the Host:
Michael Kitces, Buckingham Wealth Partners, Head of Planning Strategy.
He is also a co-founder of the XY Planning NetworkAdvicePayfpPathfinder, and New Planner Recruiting, the former Practitioner Editor of the Journal of Financial Planning, the host of the Financial Advisor Success podcast, and the publisher of the popular financial planning industry blog Nerd’s Eye View through his website Kitces.com, dedicated to advancing knowledge in financial planning. In 2010, Michael was recognized with one of the FPA’s “Heart of Financial Planning” awards for his dedication and work in advancing the profession.

Guest:
Stacey McKinnon, Morton Capital, Chief Operating Officer

How Business Owners Can Find Opportunity in Chaos

While 2020 may seem like a difficult time to be a business owner, there are hidden opportunities to grow in the chaos, especially if you think of opportunity as the ability to make positive changes in your business regardless of what’s going on around you. Below are five things that every business owner should consider in this environment to capitalize on potential opportunities for growth.

Click here to read the full article.

Author:
Wade Calvert, Morton Capital, Wealth Advisor & Partner

Leadership in a New Workplace

As businesses prepare for a return to work in the coming month, one of the most important questions that every leader must be ready to address is: How do we operate differently to ensure that our people are still engaged and motivated? Beyond questions surrounding how to resume regular operations, we must first consider how we’ll successfully lead our teams through the drastic changes in their work environment.

Click here to read the full article.

Author:
Dan Charoenrath, Morton Capital, Direct of Operations

Whitepaper – The New RIA Workplace

Our industry, our country, and the entire world was turned on its head in March as local and federal governments began to institute widespread stay-at-home orders. While some RIAs were caught flat-footed from a technology perspective, the RIA industry has been luckier than many brick-and-mortar establishments that needed to completely shut their doors during this unprecedented time. With most custodial systems, financial planning tools, CRMs, performance reporting technology, and data file servers now in the cloud, many RIAs did not miss a beat when employees fired up their internet-connected computers from home and logged into their typical applications.

Working from home has undoubtedly required our teams to work harder, but at a high level it has been fairly close to “business as usual.” Clients are still being serviced: accounts are still being opened, wires are still being sent, model portfolios are still being implemented and rebalanced. Even those RIA owners who have historically been the staunchest opponents of remote work have had to admit that this forced experiment has gone better than anyone could have imagined. And as the stay-at-home orders have continued from weeks to months, many are questioning if the traditional workday will ever look the same. Much has been written and discussed about the technology advancements not just in our industry but in society at large, but for the first time, we are now examining the physical space we work in and what the physical office of the future will look like.

Click here to reach the full article.

Authors:
Stacey McKinnon, Morton Capital, COO
Matt Sonnen, PFI Advisors, CEO

Featuring:
Michael Kossman, Aspiriant, COO
Brandon McKerney, Columbia Pacific Wealth Management, Director of Operations

 

MC Stories – A New Way of Working

Many of us experienced feelings of uncertainty and excitement when the stay-at-home order was first announced. Uncertainty from not knowing how long it would last or if we would be able to work in the same way. Excitement for the conveniences of working from home. No commute, more time with family, and comfortable apparel have been a few silver linings in the midst of a pandemic. But as time passes, we are all starting to realize that our new normal may be vastly different than the life we knew a few months ago. While working remotely has its benefits, it can also be isolating, result in longer work hours, be less intellectually satisfying, cause mediocre collaboration, and result in fatigue that could hinder innovation. To combat these negatives, we must find a way to proactively discover what it means for us to thrive in this new normal. Below are a few tips I have learned along the way to help you re-energize your workday:

Pick a few locations

Remember those days at the office where you had meetings in conference rooms, sat at your desk, visited someone in the breakroom, or went out to lunch? Mobility is just as important at home. Pick at least three locations (ideally one can be outside) and rotate between them throughout the day. If you don’t have a mobile laptop, then answer emails on your phone for 30 minutes while you sit outside.

Get the right equipment

Remote work probably won’t ever go away – it may be wise to budget a laptop purchase in the near future, start planning for an at-home office or get yourself a laptop stand so that you are not bent over in an uncomfortable position all day. If your eyes hurt from too much zooming, invest in computer glasses to decrease fatigue and strain. Do what you need to do to set yourself up for success.

Overmanage your calendar

Don’t let email or your calendar control you – control it. Spend 15 minutes every morning reviewing your calendar for the next three days and plug-in time for emails (3x/day for 30 minutes…otherwise close outlook/turn email off), schedule projects (this includes emails that take longer than 5 minutes to respond to) and block creativity/innovation time. Re-evaluate every day whether the goals you set are achievable and if something needs to be rescheduled or delayed, just ask (in advance, not at the deadline).

Invest in yourself

We can’t give our best to others if we don’t give to ourselves. What makes you feel recovered – exercise? Netflix binge? cooking? chatting with your kids? Whatever your ‘thing’ is that makes you happy, do it daily. Just because you get the conveniences of working from home does not mean you should spend all of your time working. Plug time into your calendar to invest in yourself.

Find time to connect with others

The time will come when we will reenter the workplace, and as long as it is safe for you to do so, embrace the ability to be around people again. As humans, we energize one another through non-verbal communication, something that has been lacking over the past few months. Take advantage of any opportunity to connect with someone, even if you need to stay 6 feet apart. Laugh a little and prioritize conversations that are personal and authentic.

Remember that as humans, we are naturally inclined to be together. While technology has given us the benefit of digital communication, it is also important that we do not lose sight of the benefits of human connection.

MC Stories – What Brain Behavior Teaches us About Investing

What brain behavior teaches us about investing

In the early 2000s, I was walking into a Wells Fargo Bank on San Vicente in Brentwood, CA, when 2 young men briskly walked past us with heavy sweatshirts, dark sunglasses and hats on – it was the middle of summer. I immediately remember thinking that’s odd and got a sinking feeling in my stomach as I entered the branch. I didn’t see anyone until my eyes looked down at the floor and everyone was face down. The bank had just been robbed! I had missed it by only 30 seconds. Thoughts circled my mind and I began to wonder how each person reacted; did they panic? Or play it cool, assuming it would all be over in a matter of minutes? What would I have done in that situation?

I believe the biology of our brain can help explain how we react when we are shocked, worried, scared or panicking. Our brain has three separate parts: the Brain Stem, the Limbic Brain and the Neo-Cortex. The Brain Stem is largely responsible for automatic functions like body temperature, breathing, heartrate, etc. We will call this the lizard brain. The Limbic brain (animal brain) is the seat of our emotions and contains the Amygdala which is responsible for our Fight or Flight response. The Neo-cortex is our “logical” brain and allows us to solve complicated math problems, put a man on the moon and use language.

Over the course of thousands of years, our brain biology has not changed much. In times of heightened emotional angst (i.e. during the COVID-19 pandemic), it’s easy for our fight or flight survival mechanisms to kick in. Our brains are not able to distinguish between a perceived social threat and a physical threat. When the animal and lizard brain are activated, they literally hi-jack the logical brain (neo-cortex) of its ability to think by robbing or redirecting blood flow away from the neo-cortex so that the body can leverage its survival mechanisms.
This can also explain why some intelligent people make emotional mistakes with their money. Of course, no one does this intentionally. I would contend that they get robbed or hijacked. Not by a stranger but by their own brain. The idea of lack of resources (i.e. less money) strikes at the notion of survival on some primitive level and can easily trigger a strong emotional response – almost involuntarily. Would you trust your neighbor’s pet dog or lizard to make financial decisions for you? Probably not. But, invariably that is what we do when we making financial decisions in a heightened emotional state.

What is the prescription to avoid making this critical error:
1. Awareness – recognize your animal/retile brain has taken control (internal dialogue you are having is 1 clue).
2. Acceptance – its ok to feel strong emotions. Don’t try to control them immediately, just accept that you are irritated about the current set of circumstances.
3. Find a Release Valve for the emotion. Remember that Emotion is Energy in Motion. Don’t trap it. Release it by practicing deep breathing, exercise, or take a walk.
4. Talk about what you are feeling and see if you can put words to it – you are moving back into the higher brain by articulating what you feel by engaging the Neo-cortex. Talk to your spouse, friends or your Morton Capital Advisor.
5. Time – Give yourself the gift of time (a minimum of 24 hours or perhaps several days) before making a decision.

So, the next time your amygdala shows up to rob you, you’ll know just how to handle the situation.

Staying Connected During COVID-19 – Final Webinar

Our final COVID-19 webinar was moderated by our COO, Stacey McKinnon, who asked the following questions of Wealth Advisors Bruce Tyson and Jason Naiman related to the impact of government policy on investor portfolios: 

  • We have seen a massive amount of money printing over the last decade – how has that impacted stocks and bonds?
  • How might the pandemic impact the election?
  • How should business owners think differently coming out of the lockdown?

To register for access to these online events and/or submit any questions you would like our Wealth Advisors to answer for you please email us at questions@mortoncapital.com

https://vimeo.com/mortoncapital/stayingconnectedwebinar05052020

We look forward to you joining us on future webinars!

Staying Connected During COVID-19 – Webinar #5

Led by our Wealth Advisors Alan Kane and Chelsea Watson, this webinar addressed client questions surrounding the latest developments of COVID-19 and its impact on the market. Alan Kane has more than 39 years of experience in financial services. He shared his views on the past major cycles and what we can learn from history in the current environment. Chelsea Watson has been with Morton Capital for over 10 years. She shared her perspective on how we may need to change plans and adapt to life after the pandemic.

To register for access to these online events and/or submit any questions you would like our Wealth Advisors to answer for you please email us at questions@mortoncapital.com

https://vimeo.com/mortoncapital/stayingconnectedwebinar04282020

We look forward to you joining us on future webinars!