Sign up to receive exclusive financial insights:



Next Gen Education Series: Session Two – Markets & Investments

Join us this summer for our Next Gen Education Event Series on investing. We will have members of our team share their expertise on the selected topics and be available to answer any questions. Each session of the series is designed to build on the previous topics, but it is not a requirement that you attend each one, so feel free to register for the topics that interest you.

Session Two – Markets & Investments was on Wednesday, August 25th at 10:00am PST. It covered the following topics:

  • Basics of building wealth
  • How do markets work?
  • Main Street vs Wall Street
  • Securities
  • Different investment accounts
  • Diversification

Click here to access the presentation deck.


Why is inflation increasing drastically this year and are there specific investments we should consider to combat this?

Inflation for 2021 is currently around 5.4%. This is the largest jump since 2008. One of the main reasons is supply and demand. A year ago, much of the country was experiencing lockdown from COVID, decreased supply chains, and a flood of money into the economy from the federal government. As a result, people weren’t spending as much money and were able to save more (including money from extra stimulus checks). As the economy begins to reopen, there is more demand and prices are increasing to reflect this demand. We believe that a good long-term hedge to inflation is investing in globally diversified stocks.

If markets are efficient and always incorporate all available information, how do you explain the “Meme stocks” phenomenon?

Although we believe markets are efficient, short-term anomalies like GameStop or AMC can happen. These trading patterns are mostly fueled by the “Retail investor” driving an extremely large trading volume. The increased use of social media platforms, like Reddit and Twitter, can facilitate investor communication and engagement, creating the hype. Volatility may persist for some time in these companies, however, at some point, the underlying fundamentals of a company will not be able to sustain the artificially increased price. We continue to believe in the efficiency of capital markets that will reward companies providing valuable products or services and diminish those failing to perform.

How do I select the correct investment (large stocks, small stocks, international stocks, etc.), do I just pick my favorite ones?

When you begin investing, you could select stocks you are interested in. For more long-term goals, we prefer a systematic approach. There are many providers out there that create ETFs or Mutual Funds that will invest broadly across these areas. iShares and Vanguard both have low cost “index” approaches where they invest in hundreds of different stocks that will fill out your exposure to each of these categories. This method is called passive investing. There are other companies that create active investing products which make decisions on which companies to invest in based on their research. Whichever method you chose depends on your investment philosophy for the long run.

Important Disclosure Information:

Different types of investments involve varying degrees of risk, including the risk of loss of your entire investment. Past performance is not indicative of future results. CPWM and its employees can give no assurance that the performance of any specific investment recommendation or investment strategy discussed herein, whether directly or indirectly, will be profitable, or that it will be equal to any historical performance level discussed herein. The discussion or information contained herein is not intended to be, and should not be deemed as, personalized investment advice. The recommendations made may not be suitable for your specific individual situation and we encourage you to discuss with your financial professional before undertaking any investment strategy or recommendation contained herein. The discussions contained in this blog is current only as of the date hereof and may change due to a number of factors, including varying market conditions.

  Back to Events Page