We are Not Stockbrokers & Why That Matters – Part II 

Six Things You Should Know

1. Equity Markets – Equity Markets –  were up this week with U.S. stocks (S&P 500) gaining +0.40% while international stocks (EAFE) added +0.08%.
2. Fixed Income Markets – were mixed this week with investment grade bonds (AGG) declining -0.12% and high yield bonds (JNK) rising +0.17%.
3. CPI Release – The latest Consumer Price Index reading showed prices rose 0.1% in July and is up 3.4% year-over-year. Core prices (excludes food and energy) rose 0.2% and are now up 2.5% from a year ago. Real average hourly earnings also retreated and are up just 0.1% in the past year.
4. PPI Release – Producer Prices were unchanged in July despite expectations of an increase and are now up 4.7% year-over-year. A 5.7% decline in gasoline prices helped dampen the overall reading.
5. Cybersecurity Reminder – Scammers are increasingly using Remote Access Tools (RATs) along with phishing emails or texts to take control of devices like phones, tablets, and computers. Once installed, these tools can give cybercriminals access to sensitive information, including your Schwab accounts. These attacks can be hard to spot, so if something doesn’t feel right- like unusual account activity or suspicious messages- trust your instincts. If you sense suspicious activity, please call us immediately or report any concerns to Schwab at 800-515-2157. 
6. Key Insight – [VIDEO & ARTICLE]  Many investors continue to frame advisors as though they are old-school stockbrokers. Such a view misses out on the opportunity to solve so many real issues facing investors. This week we touch on the importance of asset location and distribution strategies to help improve net returns.

Insights for Investors

By Tim Mitrovich

We are Not Stockbrokers & Why That Matters – Part II 

Investors have an endless fascination with what lies in store next for the stock market. This is evidence not only from our own anecdotal experience, but the amount of attention on topic from the press on a daily basis. It’s not wrong to ask the question, but when trying to answer it becomes one’s primary focus and distracts from not only addressing more pertinent questions to your personal circumstances, but also items that are far more within your control. 

The old “stockbroker” value proposition focused on pretending to know what stocks to buy and when. If you don’t already have personal experience with the futility of such an approach, a simple Google search will pull up any number of studies that will show you. 

So why does this mindset persist?  

Of course, part of it is simply a very difficult to suppress desire to “know the future” especially as it relates to one’s money, but after many years in the industry I think a big part of it is a desire to “solve” one’s financial goals by some means other than confronting one’s personal challenges such as saving money, employing patience or perhaps reflecting on the practicalities of one’s goals. To focus on the market rather than one’s personal circumstances also shifts accountability to someone or something besides oneself. 

The bad news is the above approach almost assuredly results in diminished results, the good news is that addressing one’s plan and setting a plan and portfolio allocation in place to help you achieve your goals is far less daunting than many seem to fear, especially with the right partner by your side. 

Below are a few of the items that investors often overlook that can have big impacts on their long-term net returns, what is the specific goal of each investment and how do those attributes relate to your specific goals/needs, or issues such as asset location (in which account to you put different types of investments to maximize net return). Let alone other issues such as the shift over time from a sole focus on appreciation to properly addressing one’s need for distributions. 

Proper Asset Allocation Is About More Than Two Choices 

This is why the conversation should never be reduced to stocks versus cash. A good advisor should be able to construct allocations using a broader range of tools and then explain why each tool belongs in the portfolio. 

From day one, our investment philosophy has centered on flexibility and optionality to better enable us to offer pragmatic and customizable solutions to clients’ unique stories and goals. That is not just attractive language; it reflects a practical truth about portfolio design. Different assets do different jobs. Public equities can drive long-term growth. Fixed income can provide ballast, income, or a more defined risk profile. Alternative investments may offer differentiated return streams, lower correlation to traditional markets, or access to opportunities not fully available in public markets.[7][4] 

J.P. Morgan’s guide to alternatives describes them as flexible, unconstrained strategies that invest across public and private markets using non-traditional approaches.[7] That does not mean alternatives are appropriate everywhere or that they solve every problem. It does mean that an advisor who is only prepared to talk about stocks and cash is missing a meaningful part of the modern allocation toolkit. 

The real issue is fit. Some clients may need immediate liquidity and modest risk. Some may need higher income with careful diversification. Some may have enough capital that a portion can be allocated to less liquid strategies in pursuit of higher expected return or more resilient diversification. A sound process should be broad enough to consider all of those possibilities and disciplined enough not to overuse any one of them.

Choosing Investment is Important, But So Is Where You Put Them 

Most people spend most of their energy on what they own, and not nearly enough time on where they own it. In reality, asset location and distribution strategy often move the needle on net after‑tax return more than another layer of manager selection or one more tweak to the allocation. You can hold the exact same mix of stocks, bonds, and alternatives, but get very different outcomes depending on whether those pieces live in a taxable account, a traditional IRA, a Roth, or a company plan. Getting that wrong doesn’t just mean paying a little more in taxes—it means permanently shrinking the pool you have to work with for future spending, giving, and legacy. 

Think about it in practical terms. Tax‑efficient assets—broad equity indices, quality growth, tax‑managed strategies—tend to be better candidates for taxable accounts where long‑term capital gains and step‑up rules can work in your favor. Less tax‑efficient investments—high‑turnover strategies, ordinary‑income bonds, certain alternatives—are often better housed in tax‑deferred or Roth structures where the drag of annual income doesn’t show up on your return every year. Then layer distribution strategy on top: which account do you tap first, how do you manage brackets, how do Roth assets support later‑life or legacy goals. When all of that is coordinated, you’re no longer just chasing gross returns; you’re steering a system that’s designed to maximize what you actually get to keep. Over a 20‑ or 30‑year retirement, that difference in “kept” return can quietly become one of the biggest drivers of your net returns and consequently whether your plan feels tight or generous. 
 

What Good Advice Should Sound and Look Like 

Good advice should sound calm, clear, and be broader than a product pitch but also be honest enough to bring up well-intentioned but potentially dangerous strategies even if that means a hard conversation. That can often mean acknowledging investor caution without flattering it. Sound “wealth management” is not about forcing every dollar into the market immediately, but ensuring every dollar has a reason for being where it is. 

That is especially important in periods when large cash balances make investors feel productive even if they are actually drifting. The proper question is not whether an investor owns too much cash in the abstract. The proper question is whether the current mix of liquid reserves, income assets, growth assets, and alternatives is aligned with the investor’s goals, obligations, timeline, and temperament.[6][4] 

The investors who ask better allocation questions usually end up with better long-term outcomes than those who ask only whether now is a good time to buy stocks. That is because the first question invites planning, while the second invites prediction. 

I am blessed to work with a dedicated and talented team that is always here to look over your plan and help recommended any changes that can help you enjoy your life today, while also taking into account the legacy you hope to leave in the future. 

Have a wonderful weekend, 

Tim and the team at TEN Capital 

Data, Just the Data

• Euroarea Industrial Production – remained unchanged in June after 4 consecutive months of growth. Across the region Germany had 0.2% growth while Spain fell 0.7%
• U.S. Retail Sales – fell 0.6% month-over-month in July for the first monthly decline since October 2025. Excluding autos and gas sales fell 0.2%
• U.S. Jobless Claims – initial claims rose by 9,000 last week to 209,000 in the first week of August and above expectations. Continuing claims on the other hand fell by 22,000 to 1,777,000.
• U.S. Existing Home Sales – fell by 1.7% in July to a seasonally adjusted annualized rate of 4.05 million units. Year-to-date home sales are now up 2.4%