Generated by Rank Math SEO, this is an llms.txt file designed to help LLMs better understand and index this website. # Riverplace Capital: Riverplace Capital is an award-winning wealth management and family office services firm based in Jacksonville that has built our reputation on providing honest and effective wealth management strategies for our clients. Our wealth managers and advisers work with individuals, families and businesses to develop comprehensive financial plans tailored to your specific needs. We follow an evidence-based investment approach that historically has provided our clients with the financial resources to live a full life. At Riverplace Capital, we don’t follow the herd when it comes to financial and investment strategies, we build lasting relationships with our clients based on their specific goals and our track record of success. With Riverplace Capital, you’re not just building your portfolio, you’re securing your financial legacy. ## Sitemaps [XML Sitemap](https://riverplacecapital.com/sitemap_index.xml): Includes all crawlable and indexable pages. ## Posts - [Cryptocurrency ](https://riverplacecapital.com/cryptocurrency/): Cryptocurrencies have taken the world by storm. You can’t turn on CNBC, open the Wall Street Journal, read the Financial Times, or access social media without seeing something about them daily. What is the big deal with crypto? Is it here to stay and how does it work? - [Earnings Are Wow!](https://riverplacecapital.com/earnings-are-wow/): Public companies are reporting fabulous earnings. On average, this past quarter’s earnings were up 26 percent over the same period last year. And these are not just a few companies. 86 percent of the firms reporting so far have met or exceeded expectations. Importantly, companies indicate that business conditions continue to be excellent. So, there are good reasons to believe that good stock market returns should continue. - [Tech Wreck](https://riverplacecapital.com/tech-wreck/): Some corrections are everything, everywhere, all at once. This one is mostly a tech wreck. Money leaving this area moves to another. Not everything, and not all at once. Tech is also where most of the recent stock market profits have been generated. So, a bout of profit-taking is to be expected. This has happened many times before. Presently, this correction is much closer to the end than the beginning! - [Quiet Periods](https://riverplacecapital.com/quiet-periods/): There is an enforced quiet period before a public company announces its earnings. This is to avoid inadvertent early release of pertinent information. It usually lasts two to four weeks. Once the earnings are announced, it is over. This also coincides with the blackout period for stock repurchases. These are also suspended until the earnings report is released. - [A Capital Cycle](https://riverplacecapital.com/a-capital-cycle/): In the beginning, good demand drives prices higher. Then capital gets deployed to serve that demand and capture good profits. It may take some time to deliver higher production. In the meantime, prices and margins stay elevated. More capital gets applied in hopes of capturing good profits. Next, the increased capacity comes online, and more and more goods begin to be available, and prices level off and then begin to decline. Finally, too much additional capacity floods the market, and price declines accelerate. The last capital deployed makes no return or even shows losses. - [The Second Half](https://riverplacecapital.com/the-second-half/): The first half of the year is behind us. What can we expect now? - [Happy Birthday America](https://riverplacecapital.com/happy-birthday-america-3/): I cannot praise enough what it means to be an American. Most importantly, we have freedoms that have been the envy of much of the rest of the world. We continue to be a beacon for many of the world’s most talented and ambitious. The American dream is alive and well. - [It Is Still All About Earnings](https://riverplacecapital.com/it-is-still-all-about-earnings/): Anyone who didn’t believe that earnings would be the key driver for stock market performance can look at the evidence. Despite the war with Iran, the closure of the Strait of Hormuz, the spikes in oil, natural gas, and fertilizer prices, stock markets here and in much of the rest of the world are having a very good year. What is truly remarkable is the rate of projected earnings growth this year. It may approach 20 percent. - [More Rotation](https://riverplacecapital.com/more-rotation/): At the beginning of this year, the U.S. stock market was clearly making a shift to value stocks. This was after years of being focused on growth, especially the technology sector. Once the Iran war started, investors shifted back to firms that they felt would do well regardless of economic damage from that war. These would be growth companies that were immune to higher energy prices, higher interest rates, and an uncertain consumer sector. - [Volatility!](https://riverplacecapital.com/volatility-7/): The Lonely Bull predicted an increase in volatility; how do you like it? Even if you don’t take advantage of it, it helps to be mentally braced. The SpaceX IPO coming today has caused a stock market earthquake. A lot of money will be spent on this, and it must come from somewhere. Expect aftershocks. Remember, Anthropic and OpenAI’s IPOs are not far behind, as well as many smaller deals. - [IPO-RAMA](https://riverplacecapital.com/ipo-rama/): We will soon see three huge initial public offerings hit our stock market. In about two weeks, SpaceX will become public. Soon after, Anthropic and OpenAI will follow. SpaceX is projected to have a valuation of 1.75 trillion dollars. Initially, it will seek 75 billion dollars, but existing private shareholders will soon after be able to sell some of their holdings as well. Anthropic and OpenAI are also likely to come with trillion-dollar valuations. It is not yet known how much new money they seek to raise. - [When the War Ends](https://riverplacecapital.com/when-the-war-ends/): When the Iran war ends, several shifts are likely to take place: - [State of the Market](https://riverplacecapital.com/state-of-the-market/): The U.S. stock market has been in rally mode since March of this year. As almost all investors know, this has been led by AI adoption and its rollout. The amount of capital investment going into this new technology is truly astounding. It is in the trillion-dollar range and is not nearly finished yet. This spending is a source of profits for many companies. In fact, of the 2% GDP growth in the first quarter, 0.8% or 40% is coming from this investment. - [Inflation](https://riverplacecapital.com/inflation-5/): Inflation has not been tamed. In fact, it is reaccelerating. Energy prices are the main culprit, but the underlying rate has been above the Federal Reserve’s 2% target for the past 5 years. It isn’t just goods that are inflating, services have been especially persistent. Have you needed a plumber, electrician, or car mechanic recently? Then you know exactly what has been happening. - [Watch the Bond Market](https://riverplacecapital.com/watch-the-bond-market/): Interest rates mean more to the stock market than the Iran War, Ukraine, and private credit concerns combined. Oil prices feed into inflation, so indirectly they affect interest rates, too. Interest rates are one thing that can derail our bull market. There are others, of course, but this is the big one. The level of interest rates reflects investors’ desire to get a fair return above inflation. No one wants to lend money and get back less than they loaned. - [The AI Trade](https://riverplacecapital.com/the-ai-trade/): The AI trade is alive and well, although it goes through bouts of doubt. Just this past week, the Wall Street Journal published a story that indicated that one of the biggest Artificial Intelligence model providers, OpenAI, was not hitting its internal targets for user and revenue growth. The implication was that their spending to roll out for additional capacity would have to be curtailed. The stock market swooned. Protests from the company itself, stating that this story was incorrect, did not mollify investors. - [The Wall of Worry](https://riverplacecapital.com/the-wall-of-worry-2/): When the stock market goes up in the face of a myriad of concerns, we call it climbing a “wall of worry.” Right now, we have a gigantic one! That wall includes a war with an impact on the world’s energy supply. Next, there are credit quality worries in the financial system emanating from private credit providers. Then, there is AI (Artificial Intelligence) and all its potential impacts, known and unknown. - [Another Earnings Season](https://riverplacecapital.com/another-earnings-season/): The Bull and his partners have often said that earnings are the core factor for setting stock prices. Higher earnings lead to higher value for the company producing them. It is really that simple. This past quarter, analysts expect that the S&P 500 companies will post earnings about 19 percent higher than in the same period last year. This, more than anything else, explains why the stock market has recovered so well after the shock at the outset of the Iran war. The United States’ economy is well insulated from the impacts of this latest war. We are a net exporter of oil and gas. We have plenty. The greatest impact is that oil prices are set internationally. Therefore, these prices are higher for us, too. But, in real terms, this has much less impact than with previous energy price shocks. We can handle this! Leadership in our stock market continues to rotate. The accent has been on value stocks since last fall. Lately, leadership has shifted back to growth names. It may be that many of these growth companies are relatively immune to higher energy prices. Investors have witnessed shifts back and forth from growth to value for some time now. We expect more of the same. When energy prices decline, don’t be surprised if value reemerges. This is why the Bull and his partners have integrated a greater balance between the two styles in portfolios. Stay steady my friends. -The Lonely Bull - [Peace?](https://riverplacecapital.com/peace/): We hope! It is said that hope is not a strategy, but every investor knows you must have optimism. Otherwise, why would you invest money today for a potential future return? Have you ever seen a long-term chart of U.S. stock market returns? The typical chart goes back to 1925 and graphs the price action to the present. There are many ups and downs, but the trend is a decided upward trajectory. Think of all the serious events that happened over that long period of time, including many wars. - [Flush!](https://riverplacecapital.com/flush/): Do market technical readings mean much in times of war? The answer is not much! Investors are more influenced by war headlines than prospects for the companies that they might own. Fear, combined with herd instincts, is more prevalent than rational analysis. Trying to divine trends from price action is nearly worthless, except at extremes. - [Private Credit](https://riverplacecapital.com/private-credit/): The Lonely Bull and his partners noted when private credit firms wanted to begin offering participation to the public, it was a bad sign. This usually happens when institutional investors begin to see problems and diminished opportunities. So, “let’s offer it to the public. They will let us continue to grow and provide an exit for insiders.” This happened in the past with oil and gas and real estate deals. The early money got a way out at peak prices, and the new money was left holding the bag as the cycle turned. - [Inflation is Good for Stocks](https://riverplacecapital.com/inflation-is-good-for-stocks/): As long as it does not get wildly out of line, inflation is good for stock prices. Some inflation gives cover for companies to raise prices. Profit margins can be defended and even enhanced. Also, inflation provides an excuse to squeeze down internal costs, adding another means to increase profits. When inflation measurements continue to stay stubbornly above the Federal Reserve's stated target, don’t cry for corporate America. - [Another Growth Scare](https://riverplacecapital.com/another-growth-scare/): The war with Iran is driving energy prices much higher than anticipated. Iran is using a very powerful tactic by closing the Straight of Hormuz. Twenty percent of the world’s energy supply must pass through this strait. The U.S. and the West are very vulnerable. Even the ability to transport oil through pipelines to the Red Sea will not work for long. Ships are being fired upon by the Houthis of Yemen. They are closely aligned with the Iranian regime. Soon, this avenue may close, too. - [War! (Again)](https://riverplacecapital.com/war-again/): The markets are again contending with another war in the Middle East. The greatest worry for investors in this one is its impact on energy prices and availability. So far, those effects are muted. There is plenty of supply around, the U.S. is now the biggest energy producer in the world, and price increases, so far, have been modest. In short, the economic impact of this war on our economy is small. - [Rise of the Retail Investor](https://riverplacecapital.com/rise-of-the-retail-investor/): The market has been trying to tell us something for fifteen years, and very few investors have been listening. Market recovery following equity drawdowns has accelerated in ways that history simply cannot explain on its own, and the retail investor may be the most overlooked reason why. - [Churn!](https://riverplacecapital.com/churn/): Our stock market averages do not begin to tell the story of what has been happening with stocks. Below the surface, much has been changing. The old high-tech leadership has become a source of funds as investors look for cheaper alternatives. Some of these are down 25-40%. The sell-off has been brutal. In the meantime, old economy stocks, such as industrials, are up double digits since the beginning of the year. Money has also been moving to other international markets. - [The Rollercoaster Continues](https://riverplacecapital.com/the-rollercoaster-continues/): Last week, the Bull predicted that better days would come after a couple of weeks of rough market action. Good earnings, additional stimulus from tax refunds, and other tax benefits gave optimism for higher stock prices. Unfortunately, the fear that AI will displace the services that many companies provide continues. Potential conflict with Iran also looms in the background. So, even though the investing environment looks good, markets continue to be buffeted by these concerns of the moment. - [Happy Days!](https://riverplacecapital.com/happy-days-2/): The employment report for January was finally released this past Wednesday morning. It was delayed because of the recent, short government shutdown. The report was surprisingly positive. Twice as many jobs were created as had been expected. Strength was evident in healthcare and construction, with manufacturing stabilizing. This indicates a strong general economy and supports the market’s turn toward broader participation in the market advance. - [SaaS Crash](https://riverplacecapital.com/saas-crash/): Software as a Service companies have been crashing the stock market since last week. Investors fear that artificial intelligence-derived self-made models can supplant many software programs with cheaper versions. Relatively unsophisticated users can create tailored applications to meet the needs that expensive software packages have been providing. Suddenly, the business models of companies such as Microsoft, Intuit, Shopify, and many others do not look safe. - [Taking Stock](https://riverplacecapital.com/taking-stock-3/): One month in, it may be useful to look at various metrics to see where the stock market stands. At the beginning of January, the Bull cited the January indicator. How did it turn out? The first five business days were positive. The month is closing out as positive, too. Remember, this indicator has a 70% history of predicting the year. So, one metric for the bulls. - [All’s Well That Ends Well – Maybe](https://riverplacecapital.com/alls-well-that-ends-well-maybe/): The week began with a frenzy over the apparent rift in NATO over America’s demand that it own Greenland. Tariff threats were made, and retaliation plans were made. The stock market sold off hard. Some investors wanted to reduce risk assets in the event of another trade war. Then, in Davos at the World Economic Forum, it was announced that perhaps accommodation had been reached, or at least an outline toward one. - [Instability!](https://riverplacecapital.com/instability/): The economy and stock market are both showing signs of instability. There are good and bad indicators flashing at the same time. In the stock market, the old high technology leadership is not leading. Artificial intelligence was the driving force last year, but so far, that is no longer happening. Industrial recovery is a new theme, but this doesn’t seem to be that strong. Healthcare is another one, but it too seems to provide weak leadership. - [The January Indicator](https://riverplacecapital.com/the-january-indicator/): Wall Street loves to seek patterns that can predict the future. One famous one is the January Indicator. It goes like this: a strong first 5 trading days indicate January will be positive. Then, if January is positive, the year is likely to be as well. A strong start bodes well for the full year. This indicator has been correct about 70% of the time. - [What’s Coming?](https://riverplacecapital.com/whats-coming/): Our economy is not bad, but it’s also not good. Too much growth has come from the buildout of data centers for artificial intelligence. Consumption is being driven by the top 10% of earners. These are both narrow slices of our economy. Narrow economies and stock markets are vulnerable to rapid changes and shifts. Unfortunately, these are not predictable, only the vulnerabilities are. - [It Was a Very Good Year](https://riverplacecapital.com/it-was-a-very-good-year-2/): After two 20% yearly gains, the U.S. stock market put up another nice one this year. We don’t know the exact figures yet, but they are in the mid-teens. We might get even close to another 20% year! This has been a spectacular run. The good news is that valuation increases are backed up by similar earnings increases. Therefore, it is not just a speculative run. - [Merry Christmas & Happy Holidays Everyone](https://riverplacecapital.com/merry-christmas-happy-holidays-everyone/): The Bull and his partners wish you not only a happy holiday season but also a safe one. It has been quite a year. Lots of ups and downs, big news events around every corner, yet here we are, another good year for returns. It just goes to show us all that it isn’t the news events of the hour that matter, but how well our portfolio companies are doing. Clearly, they have been doing well. - [Fed’s Interest Rate Cuts](https://riverplacecapital.com/feds-interest-rate-cuts/): This week, our Federal Reserve lowered the Fed Funds rate by ¼ percent. Fed funds are the money that banks lend to each other for overnight to meet reserve requirements. This rate is the key rate influencing other interest rates and, therefore, economic activity. However, this rate only directly affects short-term interest rates. Long-term interest rates include investor expectations for inflation. - [A Technical Update](https://riverplacecapital.com/a-technical-update/): The Bull and his partners do not rely on technicals for their investment process exclusively, but they are a helpful guide, especially in the near term. Presently, the overall stock market is still on a buy signal according to the money flow model we follow. Additionally, we see some shifts in sectors that are showing good momentum. Mid-cap stock has recently shown a buy signal after being on the sidelines for most of this year. - [The Holidays are Upon Us](https://riverplacecapital.com/the-holidays-are-upon-us-2/): This is a wonderful time of the year. It’s great for so many social and personal reasons, and historically good for stock market returns. The Bull and his partners believe that this one will be the same. There are several explanations why this has been typical. One is the increased economic activity, another, year-end bonuses, and still one more, the general good feeling so many of us have this time of year. - [Flying Blind](https://riverplacecapital.com/flying-blind/): Investors have not been getting economic data since the government shut down. A little is now trickling in, but our economic picture is far from clear. Are we in danger of a recession? There are anecdotal signs of slowing down and distress. Private credit issuers may have made more bad loans than we know, and there are also other signs of credit stress. For example, car loan delinquencies and defaults are up, as well as increased foreclosures of houses. - [Earnings Report Card](https://riverplacecapital.com/earnings-report-card/): About 85% of the companies reporting their third-quarter earnings met or exceeded analysts’ estimates. Earnings grew more than 11% from the same period last year. Next quarter, they are expected to grow by about 7%. This earnings growth pace is astounding. This is especially so since many of the leading growers are huge companies. - [The Valuation Boulder](https://riverplacecapital.com/the-valuation-boulder/): It is getting harder to push the boulder higher up the valuation hill. Price-earnings ratios are already stretched and reflect a lot of good news along with hopes for more. Are we in for a correction? Perhaps, but a short reset is more likely. There is just too much investable money around, the economy is still expanding, and we are in the historically strong period of the year for good returns. We should stabilize soon. - [What Will AI Wreck?](https://riverplacecapital.com/what-will-ai-wreck/): Discussions of artificial intelligence are most often about how many positives it will bring. However, it will also wreck some businesses and professions. At the very least, changes will be so profound that many will not be able to adjust and adapt. Think of anything that is basically routine or rules-based. AI can do it faster, better, and cheaper. - [AI](https://riverplacecapital.com/ai/): Artificial intelligence as an investment theme has become very powerful, but enthusiasm sometimes hesitates. This is normal with the adoption of any new technology. Everyone knows that advancements do not proceed in a straight line, but make no mistake, AI will have profound effects on our lives. - [Another Bout of Volatility – Surprised?](https://riverplacecapital.com/another-bout-of-volatility-surprised/): No one should be surprised! Since the beginning of this year, volatility has arisen from time to time, almost out of nowhere. The Bull has written many times to expect more. This time, the catalyst was an apparent escalation of our trade war with China. Will there be follow-through on the threats made? We will see, but we doubt it. There is too much to lose for both parties. - [Gold Glitters](https://riverplacecapital.com/gold-glitters/): When the Bull started his investing career in the late 1970s, gold was trading around $400 per ounce. It recently traded for over $4000 per ounce. This is a tenfold increase! Over 46 years, this is an annual return of around 8%. Compare this to the S&P 5000. It was trading around 100. It is now over 6700. That annual return is approximately 12.3 % and with dividends, the return rises to over 18%. - [Congress Throws a Wrench into the Gears](https://riverplacecapital.com/congress-throws-a-wrench-into-the-gears/): The government shutdown is a new variable in the progress of our economy. Much of U.S. business is not affected, but with time, more will see consequences. How long will this go on? Your guess is as good as any. However, at this point, the two parties are not even talking to each other. - [A Lot of Negative Chatter](https://riverplacecapital.com/a-lot-of-negative-chatter/): Recently, there has been a lot of negative commentary. Some pundits have predicted a near-term correction in our stock market. Others are doing a lot of hand-wringing over the high average valuation for stocks. And then there are those who have been bringing up the possibility of a recession soon. Still others seem distracted by another fight over the Federal debt ceiling and what may happen if it is not raised. This is all a little louder than normal. - [The Stock Market Gets What It Wants](https://riverplacecapital.com/the-stock-market-gets-what-it-wants/): Let’s hope it is also what the market and economy need. Certainly, with inflation having come down over the past couple of years, there is room to reduce interest rates. Hopefully, inflation will stay on a downward path. The 2% “Fed” target is still elusive. - [Goldilocks or Recession on the Way?](https://riverplacecapital.com/goldilocks-or-recession-on-the-way/): Recent economic data has prompted another debate: “Has the economy decelerated to a sustainably moderate rate of expansion or is it heading for decline?” Clearly, our U.S. economy has slowed. New job creation is light, housing activity is stagnant, and pockets of stress are showing up. As examples, credit balances are at all-time highs, and car loan delinquencies are on the rise. - [September](https://riverplacecapital.com/september/): September has the distinction of being the one month of the year that has a record of stock market losses; 53% of the time, it is a down month. That leaves 47% of the years when it isn’t. The Bull and his partners do not put much stock in these kinds of statistics. Every year circumstances are different. However, some investors do. Good luck with making investment decisions on such short-term tendencies. - [Melting Up](https://riverplacecapital.com/melting-up-4/): The stock market has been hitting new highs. European and Asian markets are on fire. More stocks are participating in the rally, and interest rates are slated to begin falling soon. Indeed, in the treasury market, short-term interest rates have already been falling in anticipation of rate cuts by the Federal Reserve. - [Jackson Hole](https://riverplacecapital.com/jackson-hole/): Many investors’ eyes will be on the Fed Chairman’s speech this Friday at the central bank’s conference in Jackson Hole. The intense interest tells us that the level of current interest rates is very important. The chairman’s speech may hint at the Federal Reserve’s next moves. Certainly, lower rates are very important for the current bull market. The same or higher interest rates will cast a pall on the uptrend. - [So Far, So Good](https://riverplacecapital.com/so-far-so-good-2/): Earnings reports for the second quarter and the year so far are almost complete. They were quite good. Most companies are growing their revenues and earnings. About 82 percent are meeting or beating expectations. Surely, there were some disappointments; there always are. The economic environment continues to look fine, not super strong, but steady. It is hard to see what derails this. - [The Best Market Forecaster?](https://riverplacecapital.com/the-best-market-forecaster/): And the winner is – the stock market itself. It is far better than so-called forecasters, pundits, economists, gurus, or swamis. That is because it is the collective wisdom of millions of investors making their own judgements with skin in the game – their own money! Did you know that stock market performance is a big factor in the government’s Leading Economic Indicators? Studying the economy tells one little about the stock market; however, studying the market tells you a lot about the economy. So, what is the market telling us now? - [A String of Positives](https://riverplacecapital.com/a-string-of-positives/): A few weeks ago, the Bull listed the many things that could go right. Sentiment on Wall Street was bearish, and investors did not see all the possibilities. Now that many that were listed have panned out, more investors are changing their minds. Certainly, the brigade of perennial bears is still out there voicing concerns. Realize there are always concerns. Investing is connecting dots surrounded by uncertainty. However, the preponderance of evidence is on the side of the bulls. - [Money Flow Model Now Positive](https://riverplacecapital.com/money-flow-model-now-positive/): After the market bottom on April 8th, it has taken a while for the money flow model we follow to turn positive. It is because the recovery has been led by a small group of stocks. Now, the stock market is advancing along a much broader front. The money flow model went positive early this week. - [Inflation Still Sticky](https://riverplacecapital.com/inflation-still-sticky/): The Bull cautioned, almost from the outset of the Federal Reserve’s fight against inflation, that it was likely to remain sticky. The two percent target would prove to be too ambitious, and the long-term experience was closer to three percent. Getting to a lower sustainable rate would require damaging economic growth, if not pushing our economy into a recession. This is exactly what has been playing out. - [Steady as She Goes](https://riverplacecapital.com/steady-as-she-goes-2/): Our stock market continues to advance. The recent recovery from the April sell-off is the fastest ever. Now, gains are more measured. It is amazing to see how well this market sheds negative news. We’ve had a war in the Middle East, an ongoing one in Ukraine, worries about the impact of tariffs, interest rates that might be modestly too high, and yet, onwards we climb. This just goes to show that when the fundamentals are strong, all the rest is a distraction. - [Happy Birthday America](https://riverplacecapital.com/happy-birthday-america-2/): We have so much to be thankful for! We live in a country that provides more opportunities than any other country. Yes, we have challenges, but we always do. We will overcome them! The idea of America will live on. It was born with the ideals of the European Enlightenment, such as “all men are created equal.” We have not always lived up to those ideals, but we have them. - [Let It Roll](https://riverplacecapital.com/let-it-roll/): You just made it through another mid-east war, so congratulations if your portfolio is intact. The Bull cautioned recently that selling for a mid-east war has never been useful in managing portfolios. In fact, if you were not in the market when the truce was announced, then you lost out. The rally came so fast, it would have been almost impossible to reestablish positions at the prices below what you had just received. Selling low, buying high is not a prescription for making money. - [The Wall of Worry](https://riverplacecapital.com/the-wall-of-worry/): The proverbial “wall of worry” usually serves to provide enough reasons to be cautious and prevents markets from overheating. Periodic mini-setbacks keep a lid on runaway speculation. These actions usually help keep uptrends intact. The Bull and his partners continue to be optimistic that our stock market will rise higher in the months ahead. Stay steady my friends. - [The Age of Abundance](https://riverplacecapital.com/the-age-of-abundance/): A new term has entered discourses about our economy, “the age of abundance.” This seems to be a big jump from recent discussions about the possibility of a recession this year! In many ways, we have already been living with abundance. Certainly not in everything, but drive by new car lots, walk through grocery and other store categories, and you must wonder at the abundance of so much. In human history, this is surely an age of abundance. - [Growth Again!](https://riverplacecapital.com/growth-again/): The Bull has written many times about the ongoing back-and-forth competition between the growth and value sectors of our stock market and economy. In the first part of this year, returns came mostly from value stocks while growth stocks corrected. Now, that pattern has reversed. Growth is back. Why? - [What Could Go Right?](https://riverplacecapital.com/what-could-go-right/): The financial press so often bombards us with what could possibly go wrong. Instead, we ought to take stock in what could go right! In the face of many negatives, the stock market has held up well, and in some cases, even thrived. So here are some things that are potential positives that investors may be sniffing out: - [Bonds Are King](https://riverplacecapital.com/bonds-are-king/): The Bond market is King. It is much larger than the stock market and sets interest rates. These can influence whether economic growth is encouraged or discouraged. Business health and activity determine profit potential, and profits are a major factor by which companies are valued. The level of rates also helps set the earnings multiple for stocks. Higher rates mean a smaller multiple and vice versa. So, when the bond market is unhappy, most everything else is too. - [Temperament](https://riverplacecapital.com/temperament/): Investing takes patience and a certain faith that most things work out. In a dynamic economy like ours, ways are found to overcome challenges. We have just gone through a very volatile period. Most investors seemed to remain committed, while many professional investors panicked. They felt that they needed to take action to preserve capital or mitigate the downside. Unfortunately, many found it difficult to re-enter the market at prices less than those they had sold. Selling low and buying back higher is not a good prescription for success. - [Recession or No Recession](https://riverplacecapital.com/recession-or-no-recession/): The Bull is going out on a limb and predicting that the U.S. will not have a recession this year. Many pundits have pronounced that one is likely this year. However, many of these same prognosticators had predicted one for several years after the pandemic to no avail, and now they’re back. Some of us in the investment business refer to these individuals as permabears – always looking for what’s wrong. - [Getting Clearer](https://riverplacecapital.com/getting-clearer/): The investing horizon is becoming clearer. The economy has slowed but is still strong.  Companies’ earnings remain good with an estimated 10 percent average increase this year. Tariff rates are being managed downward as agreements or exemptions are made to alleviate excess damage or other unintended consequences. The U.S. dollar is still king and unlikely to be replaced as the world’s most common medium of exchange anytime soon. - [Now What?](https://riverplacecapital.com/now-what/): The Bull still strongly believes that the bottom of this correction is in! The stock market low was set on April 8th. Since then, the market has been erratically basing, with a lot of back and forth. We said at the time that the recovery was unlikely to be a “V.” It would take time, and so it has. Recently, the recovery has gained some momentum. However, expect more gyrations before this market phase is over. - [Earnings!](https://riverplacecapital.com/earnings/): Finally, investors are starting to get first-quarter earnings reports from public companies. Rather than guessing, we can all start to see what is going on. Unfortunately, the Bull and his partners suspect that most companies will be very circumspect about their immediate and longer-range prospects. So, as much as we would all like to begin to connect dots and have more to make forecasts, we are all likely to be disappointed. - [Death by Leverage](https://riverplacecapital.com/death-by-leverage/): Leverage kills! It forces investors to make moves they would otherwise not want. That is exactly what happened when the investment world was surprised by the magnitude and extent of the tariff regime announced by President Trump. Once selling began, it was accelerated by the need to cover borrowings before equity was wiped out. (Remember, borrowing money to buy stocks or bonds implies that their value is the collateral. Once that collateral falls, then the borrower needs to put up more money to support the loan or quickly sell the security to pay back what is owed.) - [Sideswiped by Tariffs](https://riverplacecapital.com/sideswiped-by-tariffs/): Clearly, the stock market just went through a retest of the bottom it made a couple of weeks ago. Retests are often a pattern that markets go through in making a durable bottom. It is sometimes referred to as a “W” bottom from the price chart shape that such action traces. It looked like the test would be successful, but then the president announced a new tariff regime. The announcement was far more than investors were expecting. The stock and bond markets reacted. - [Not a V Bottom](https://riverplacecapital.com/not-a-v-bottom/): Two weeks ago, the Bull wrote that the stock market correction was probably over- it was. He also stated that the recovery was likely to be an extended one. So far, this is how things are playing out. Volatility should also continue as investors await and respond to major policy moves by our new presidential administration. - [Hallelujah!](https://riverplacecapital.com/hallelujah/): We finally had a correction, and it is mostly over; hope you bought! Even though the U.S. stock market should recover, it will probably not be a “V” bottom. It will take some time and may go back and forth for a while. - [Greed Anyone?](https://riverplacecapital.com/greed-anyone/): Greed is good!*  In a capitalist market economy, ambition, nerve, and initiative are often rewarded. These are all aspects of the concept of greed and are necessary to move the economy forward. After a stock market correction, it is time to pick up some bargains. What else would any rational investor conclude? - [Money Flow Model](https://riverplacecapital.com/money-flow-model/): The money flow model that we follow is getting more positive and looks like it will post a buy signal very soon. That together with the dramatic oversold condition in our stock market tell us that a significant rally is close. Additionally, the exceptional performances of markets in Europe and elsewhere should reinforce a turnaround here. The Bull and his partners are not traders, but we want to know the technical condition of the stock market so we can time sales and replacements. - [Stealth Correction](https://riverplacecapital.com/stealth-correction/): You may not have noticed this by watching the major stock indices, but the median stock is down 13 percent over the past few weeks. This is important because those worrying about a correction have missed the fact that we have already had one. Could it continue? Of course, it can, but much has already been done. - [Quarterly Report Card](https://riverplacecapital.com/quarterly-report-card/): Every quarter, investors get a look at how public companies are doing. The businesses must report their earnings and revenues for the past quarter and their financials year-to-date. They must also announce any other important and relevant information. In addition, many firms also give some guidance for their profitability and sales for the next few quarters. So far so good! Seventy-seven percent of reporting companies have met or exceeded analysts’ quarterly estimates for revenues and profits. - [Jevons Paradox](https://riverplacecapital.com/jevons-paradox/): DeepSeek, the new Chinese AI model, may offer innovations that make AI creation and use much cheaper. Investors’ first take on this was that companies providing models for use and those building out the necessary infrastructure would be hurt. Now it seems maybe this was too simplistic a reaction. If Jevons paradox comes into play, then use may expand so rapidly that providers may benefit. - [Newton’s Third Law of Motion](https://riverplacecapital.com/newtons-third-law-of-motion/): “For every action, there is an equal and opposite reaction.” This physical law can also apply to human interactions. Perhaps not in equal measure, but actions certainly engender reactions. We are now seeing this with the application of tariffs by the U.S. Other countries are reacting. Actions create reactions, and reactions create more reactions. It is difficult to see how all of these will settle out. - [Resilient!](https://riverplacecapital.com/resilient/): So much has been thrown at our stock market this year, but it has proven to be resilient. From worries about interest rates, increasing inflation from tariffs and deportations, and valuations that seem high! Yet, the market has continued advancing. It is difficult to see what knocks it down. - [DeepSeek](https://riverplacecapital.com/deepseek/): Our tech industry just had a wrench thrown into its works from a smallish Chinese AI startup, DeepSeek. This company was able to create and train an AI model at a fraction of the cost that others have been spending. They even published a white paper on how they did it. The question is what impact will this have on AI incumbents? - [A New Era Begins](https://riverplacecapital.com/a-new-era-begins/): We are now in the Donald Trump era for the stock market. The new administration promises many changes in direction with new approaches and policies coming. Trend analysis does not help in predicting the future. Additionally, new technologies, such as Artificial Intelligence, will generate their own changes. Managing capital in this environment will require insight and flexibility. The Bull and his partners relish the challenge. - [Sticky Inflation (Not All Bad)](https://riverplacecapital.com/sticky-inflation-not-all-bad/): The inflation rate has gotten sticky at about where the Bull expected it to level off. The Bull stated this well over a year ago and has referenced it in subsequent blogs. There were many reasons for this prediction, including a reversal in the globalization of trade, aging populations around the world, increasing competition for resources, as well as the need to increase defense spending. All these factors add to inflationary pressures. - [Technical Update](https://riverplacecapital.com/technical-update/): It is useful to periodically look at the technical condition of our stock market. As regular readers of this blog know, in the past quarter, the Bull warned that the stock market internals were pointing to a period of heightened volatility. Indeed, that is exactly what has happened, and the market tells us that this is likely to continue. - [The Bond Vigilantes are Back](https://riverplacecapital.com/the-bond-vigilantes-are-back/): “Bond vigilante” is a term coined in the 1980s for traders and investors who drove up interest rates at the slightest sign of increasing inflation. Any policy proposal or lack of restraint by our government was immediately met with actions that drove interest rates higher. It might be the mass selling of longer-dated bonds and/or the refusal to buy offerings at current interest rates. Higher and higher rates were the result. - [Volatility!](https://riverplacecapital.com/volatility-6/): Get used to it. It is here to stay and should remain elevated. The Bull and his partners have been warning this was coming for over a month now in The Lonely Bull weekly blog. We stated that the internal technical picture of the stock market was deteriorating. Additionally, many high-growth names were having parabolic moves and traders were acting more and more irrationally, which is never a good sign. - [Merry Christmas & Happy Holidays!](https://riverplacecapital.com/merry-christmas-happy-holidays/): Take a moment or a few days to celebrate another successful financial year! No one knows what is coming next, but there are plenty of reasons to be optimistic. No matter what, the Bull and his partners are ready to adjust and adapt. Thank you for your support and all the best to you and yours! - [The Year-End Push](https://riverplacecapital.com/the-year-end-push/): This is the time of year when institutional investors make moves to finish their reporting year. Tax losses are often taken, portfolios are reevaluated and adjusted for the new year, and in some cases, liquidity is provided for payouts. There are a few other drivers too that affect stocks like window dressing. This is when portfolio managers want to show that their portfolios have the most successful positions and are absent losers. - [Potential vs. Realization](https://riverplacecapital.com/potential-vs-realization/): As regular readers know, the Bull has been cautious since several internal stock market metrics turned negative. These measures point to the potential for stock market decline. Also, the parabolic price action of many “hot” stocks further suggests caution. In many cases, the Bull and his partners would rather be shedding stocks than accumulating them. However, we only move incrementally rather than making “all or nothing” decisions. - [The Holidays Are Upon Us](https://riverplacecapital.com/the-holidays-are-upon-us/): It has been a terrific year for stock market returns. For those, we have a lot to be grateful. However, we all have much in our lives that is more important than that. Our partners, families, and friends all come to mind. Our communities, our country, and peace should be a part of our gratitude. This time of the year should invite reflection and appreciation. - [Hold Some Dry Powder!](https://riverplacecapital.com/hold-some-dry-powder/): Volatility has been increasing. The Bull and his partners believe it will persist and perhaps even increase. We are also seeing deterioration in the internal technicals in the stock market. The money flow model has now turned negative and other factors are flashing warning signals. Nothing in forecasting is definitive, but there are plenty of reasons to stay cautious. - [Caution!](https://riverplacecapital.com/caution/): Two weeks ago, the Bull wrote a cautionary blog commenting that stock prices do not grow to the sky. The investor elation after the election has almost propelled them to it. Look at some of the popular growth names and you will see a decided acceleration to higher and higher prices. Their price charts look parabolic; we refer to these stocks as being “up on a stick,” with the recent price action going straight up. - [Glad It’s Over!](https://riverplacecapital.com/glad-its-over/): After a long, tortuous election campaign, many investors are glad it is over. Now that we know some of what the landscape holds, we can all get on with it. The initial reaction to the end of the election would have probably been positive regardless of who won. However, clearly, investors like this outcome. - [Up Against the Sky!](https://riverplacecapital.com/up-against-the-sky/): The Wall Street adage is that stocks do not climb to the sky. More than a few already have. Trillion-dollar capitalizations are no longer unfathomable but accepted. Some price charts look like the definition of parabolic moves, i.e., price appreciation has accelerated at steeper and steeper angles in shorter and shorter periods of time. This type of action is seldom sustainable. Certainly, to project further price acceleration seems foolish and tantamount to climbing to the sky and beyond. - [It’s the Big E](https://riverplacecapital.com/its-the-big-e/): It is still early in the third quarter reporting period, but indications point toward a good solid earnings season. Our U.S. economy is growing at around a 3 percent rate and inflation is tracking at approximately a 2.5 percent pace, so the business backdrop is favorable. There are times when businesses are fighting a tough environment; this is clearly not one of them! Most heartening is that good earnings are coming from many different types of businesses. This fact is also reflected in how broad the advance in the stock market has been. - [One and a Half Gainer with a Full Twist](https://riverplacecapital.com/one-and-a-half-gainer-with-a-full-twist/): This market is performing tricks that make Olympic divers look timid. Its action is not just up and down but also includes rotations from growth stocks to value stocks, large companies to mid- and small-sized ones, then a twist from domestic to international, and all back again. Sometimes, these moves occur in a matter of days. Bless you, if you can predict the next change. (This is a trick statement because the Bull knows no one can.) - [Breast Cancer Awareness Month](https://riverplacecapital.com/breast-cancer-awareness-month/): Riverplace Capital is proud to support efforts in bringing awareness to breast cancer as well as attempts to reduce its impact and eventually find a cure for this scourge. This is one of the many causes and community investments that our team supports. On our website, we list the various organizations that we have supported over the years. We hope our example will encourage others to give back too. - [It’s Still Not Over](https://riverplacecapital.com/its-still-not-over/): This heightened period of volatility still has time to run. Until we get past the election and its possibly messy aftermath, it will be difficult for investors to make reasonable assessments about an investing future. Remember, we are also entering the earnings season for the third quarter. There are high expectations for these earnings. Hopefully, they will be fulfilled, but it is reasonable to expect there will be negative surprises. - [Mother Nature Always Wins](https://riverplacecapital.com/mother-nature-always-wins/): You can’t fight “Mother Nature!” Here, the Bull is using the term to refer to natural tendencies that are always in effect. They are like gravity--omnipresent and inescapable. Sailors learn to work with the wind. Good investors learn to invest in ways that work in accordance with nature. ## Pages - [Ryan Becker](https://riverplacecapital.com/team/ryan-becker/): Ryan Becker serves as Managing Partner and Chief Investment Officer, working closely with the Riverplace Capital team to guide investment strategy, portfolio construction, and client outcomes. He plays a key leadership role in the strategic combination of Riverplace Capital and Oceanus Capital Partners, ensuring continuity and execution of Riverplace Capital’s disciplined, client-focused investment approach. - [Maleia Spresser](https://riverplacecapital.com/team/maleia-spresser/): As Director of Technology & Trading, some of Maleia’s responsibilities include network administration, internal reporting, and executing trades. She has previous experience at an RIA firm as a Portfolio Analyst, supporting the trading team. There her roles included market research, account analysis, trading, and reconciliation of account portfolios. - [Anny Campos](https://riverplacecapital.com/team/anny-campos/): Anny Campos has more than 5 years of investment experience. Most recently, she worked for BBVA Investments where she supported 5 Financial Consultants in sales, regulatory and firm compliance, and brokerage operations. As Director of Operations and Compliance, she oversees all compliance responsibilities for Riverplace Capital. - [Terri Kimball](https://riverplacecapital.com/team/terri-kimball/): Ms. Kimball has more than 35 years of investment experience and has held NASD series 7 & 63 Registered Representative licenses. Her financial industry experience includes working with E.F. Hutton & Co., Douglas Capital Management, Inc., and Prudential Securities, Inc. - [Scott Wohlers](https://riverplacecapital.com/team/scott-wohlers/): Scott Wohlers is responsible for client portfolio management as well as oversight of business development and marketing for the firm. He has more than ten years of experience in the financial services industry and is a member of the Riverplace Capital Management Investment Committee. - [Mark Ross](https://riverplacecapital.com/team/mark-ross/): Mark Ross oversees Wealth Management & Family Office services for Riverplace Capital. In this role, he works with high-net-worth individuals to provide tailored services to meet their individual needs. He is a member of the Investment Committee and focuses on clients, their portfolio management, and financial planning. - [Peter Bower](https://riverplacecapital.com/team/peter-bower/): Peter Bower has more than 40 years of investment experience and co-founded Riverplace Capital Management in 1998. - [Professional Alliance Program](https://riverplacecapital.com/about/professional-alliance-program/): How can Riveplace Capital help you? - [Portfolio Management](https://riverplacecapital.com/services/portfolio-management/): At Riverplace Capital, we prioritize establishing strong connections between our clients and their portfolio managers, fostering trust and understanding. With over 100 years of combined experience, our team meticulously curates every aspect of your portfolio management, ensuring thorough administrative oversight. - [Profit-Sharing Plans](https://riverplacecapital.com/services/small-business-advisory/profit-sharing-plans/): Get Your Free Financial Plan - [Pension Fund Management](https://riverplacecapital.com/services/small-business-advisory/pension-fund-management/): Get Your Free Financial Plan - [Private Wealth Management](https://riverplacecapital.com/services/private-investment-plans/private-wealth-management/): Get Your Free Financial Plan - [Private Investment Plans](https://riverplacecapital.com/services/private-investment-plans/): As Registered Investment Advisers in Jacksonville, managing and allocating investment assets is one of the primary functions of our private investment plans. This nuanced component of financial stewardship is the backbone of our wealth management services and financial advisory services. - [Estate Planning](https://riverplacecapital.com/services/family-office-services/estate-planning/): Get Your Free Financial Plan - [Terms of Use](https://riverplacecapital.com/terms-of-use/): Terms of Use Agreement (“Agreement”) - [Forms](https://riverplacecapital.com/forms/): Forms 2025 ADV Form 2A2025 ADV Form 2B2025 ADV Part 3 - [Disclosure](https://riverplacecapital.com/disclosure/): Riverplace Capital Management, (“RCM” or “Company”) is an SEC-registered investment adviser located in Jacksonville, Florida. RCM may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. RCM’s website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of RCM’s website on the Internet should not be construed by any consumer and/or prospective client as RCM’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by RCM with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of RCM, please contact the SEC or the state securities regulators for those states in which RCM maintains a notice filing. A copy of RCM’s current written disclosure statement discussing RCM’s business operations, services, and fees is available upon written request. RCM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to RCM’s website or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. - [Contact](https://riverplacecapital.com/contact/): Get Your Free Financial Plan - [Perspectives Quarterly Market Newsletter](https://riverplacecapital.com/perspectives-quarterly-newsletter/): Second QUarter, 2026 - [Community Investment](https://riverplacecapital.com/about/community-investment/): Through the years, we have provided financial support and professional services for the following community partners. - [Lonely Bull Glossary](https://riverplacecapital.com/lonely-bull-glossary/) - [Lonely Bull Financial Blog](https://riverplacecapital.com/lonely-bull-financial-blog/) - [FAQ](https://riverplacecapital.com/frequently-asked-questions/): Providing clients with a disciplined approach to investing, a key differentiator at Riverplace Capital is our individuality of thought and hands-on money management which is done in-house. This is unique for firms of our size and separates us from the crowd. - [About](https://riverplacecapital.com/about/): Since 1998, the Riveplace Capital team has helped countless individuals, families, and businesses formulate a roadmap for their financial management in Jacksonville, Ponte Vedra, St Augustine, and the entire First Coast. Our staff works directly with you to identify your financial goals and strategically craft a plan of action to accomplish those goals. We help manage your assets to drive your standing toward your priorities and financial dreams. - [Investment Strategies](https://riverplacecapital.com/investment-strategies/): Riverplace Capital's Income Strategy caters to investors seeking income alongside capital preservation. This approach not only generates regular cash flow for investors but also aims to grow their principal. With a target yield of 4-5%, the strategy emphasizes maintaining upward price appreciation while benchmarking against the Dow Jones Dividend Select Index. The portfolio consists of 25 equities, equally weighted and diversified across sectors based on Riverplace Capital's expertise. - [Cost for Services](https://riverplacecapital.com/services/cost-for-services/): $2,000,000 and Above - [Small Business Advisory](https://riverplacecapital.com/services/small-business-advisory/): Get Your Free Financial Plan - [401k](https://riverplacecapital.com/services/small-business-advisory/401k/): Get Your Free Financial Plan - [Tax Protection](https://riverplacecapital.com/services/small-business-advisory/tax-protection/): With tailored tax protection plans, Riverplace Capital addresses the unique needs of small businesses, providing customized strategies that align with specific financial goals and circumstances. - [Retirement Planning](https://riverplacecapital.com/services/family-office-services/retirement-planning/): Get Your Free Financial Plan - [Financial Planning](https://riverplacecapital.com/services/family-office-services/financial-planning/): At Riverplace Capital, our financial planning services offer a personalized touch, allowing you to work directly with your dedicated financial manager who prioritizes your goals and needs. With more than 100 years of combined experience, we provide reliable expertise and guidance. Conveniently located in downtown Jacksonville, Florida, we're here to help shape and secure your financial future. - [Family Office Services](https://riverplacecapital.com/services/family-office-services/): Whether you have generational wealth you need to manage or want to invest in your family's future, our team provides personalized family office services in Jacksonville, Ponte Vedra, St. Augustine, and the greater North Florida region. Our family wealth management service goes beyond standard financial planning and establishes a framework for future generations. We consider key investment strategies, explore personalized options, and manage substantial funds to leave more than just memories behind. - [Services](https://riverplacecapital.com/services/): As a full-service fiduciary agency, our experts offer a wealth of financial management services to help our clients with private wealth management and family office services. For more than 25 years, Riverplace Capital has operated with your life-long goals in mind. Learn more about our financial management services below. - [Riveplace Capital](https://riverplacecapital.com/): At Riverplace Capital, we approach fiduciary planning, family wealth management, and investment management with expertise and piercing insight. Executive Chairman, Peter Bower, founded Riverplace Capital in 1998 with a vision of financial handling for small business owners, family estates, individual investors, and financially forward thinkers. Now, after over 25 years of fulfilling that vision, our clients enjoy the confidence that comes from our experience. - [Privacy Policy](https://riverplacecapital.com/privacy-policy/): What Do We Do with Your Personal Information? ## Glossary - [Reversion To The Mean](https://riverplacecapital.com/lonely-bull-glossary/reversion-to-the-mean/): Reversion to the mean:  We reference this statistical principal periodically, but what does it really mean? Basically, it refers to the tendency for phenomenon to trend at a certain rate or level. Divergences from this trend are often corrected back to the central tendency or mean (average). - [Short sale](https://riverplacecapital.com/lonely-bull-glossary/short-sale/): Short sale: Selling property or security when the recovered money is less than the amount owed. - [Liability](https://riverplacecapital.com/lonely-bull-glossary/liability/): Obligation for repaying a loan in addition to charges and interest. - [Department of Veteran Affairs (VA)](https://riverplacecapital.com/lonely-bull-glossary/department-of-veteran-affairs-va/): An independent governmental agency which guarantees long-term, low-or no-money-down mortgages to eligible veterans. - [Deed-in-Lieu](https://riverplacecapital.com/lonely-bull-glossary/deed-in-lieu/): A deed that is voluntarily given, by a mortgagor to the mortgagee, to satisfy a debt and avoid foreclosure of a property. - [Counter Offer](https://riverplacecapital.com/lonely-bull-glossary/counter-offer/): The rejection of an offer to buy or sell property, whereby the other party simultaneously makes an alternative offer or otherwise changes the terms in some way. - [Conventional Mortgage](https://riverplacecapital.com/lonely-bull-glossary/conventional-mortgage/): A private sector loan that is not guaranteed or insured by the U.S. government or other entity.  Conventional loans are required to follow Fannie Mae Guidelines in order to be bought and sold on the secondary market. - [Construction Loan](https://riverplacecapital.com/lonely-bull-glossary/construction-loan/): A loan providing the funds necessary to pay for the construction of buildings or homes.  The lender advances funds to the builder at periodic intervals as the work is completed. - [Comparative Market Analysis](https://riverplacecapital.com/lonely-bull-glossary/comparative-market-analysis/): An estimate of the value of a property based on an analysis of sales to properties with similar characteristics. - [Comparables or Comps](https://riverplacecapital.com/lonely-bull-glossary/comparables-or-comps/): Properties used by Realtors or Appraisers as comparisons to determine the value of a subject property. - [Commitment Letter](https://riverplacecapital.com/lonely-bull-glossary/commitment-letter/): A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. - [Cloud on Title](https://riverplacecapital.com/lonely-bull-glossary/cloud-on-title/): Any conditions revealed during a title search that adversely affect the title and transferability of real estate. - [Closing Disclosure](https://riverplacecapital.com/lonely-bull-glossary/closing-disclosure/): A five-page form, created by the Consumer Financial Protection Bureau (CFPB), that provides final details to a borrower about the mortgage loan selected. - [Encumbrance](https://riverplacecapital.com/lonely-bull-glossary/encumbrance/): A lien or claim on a property. - [Encroachment](https://riverplacecapital.com/lonely-bull-glossary/encroachment/): An intrusion of a permanent structure on someone else's property. - [Easement](https://riverplacecapital.com/lonely-bull-glossary/easement/): A right of way giving persons other than the owner access to or over a property. - [Down Payment](https://riverplacecapital.com/lonely-bull-glossary/down-payment/): The portion of the purchase price of a home that the buyer pays in cash and does not finance.  There are many different down payment requirements for various loan programs. - [Earnest Money](https://riverplacecapital.com/lonely-bull-glossary/earnest-money/): Money that is deposited in escrow by a potential buyer to secure a purchase and sale contract. - [Due-on-sale clause](https://riverplacecapital.com/lonely-bull-glossary/due-on-sale-clause/): A provision that allows a lender to demand the immediate repayment of the mortgage balance if the borrower sells the home. - [VA Mortgage](https://riverplacecapital.com/lonely-bull-glossary/va-mortgage/): A mortgage that is guaranteed by the Department of Veterans Affairs (VA).  Intended for active and retired military people. - [Underwriting](https://riverplacecapital.com/lonely-bull-glossary/underwriting/): The process of evaluating a loan application to determine the risk involved for the lender.  Underwriting involves an analysis of the borrower's creditworthiness and the quality of the property itself. - [Transfer Tax](https://riverplacecapital.com/lonely-bull-glossary/transfer-tax/): State or local tax payable when title passes from one owner to another. - [Title Search](https://riverplacecapital.com/lonely-bull-glossary/title-search/): The process of checking all the records relating to the title to see that it doesn't have any liens or claims against it that would keep it from being transferred. - [Title Insurance](https://riverplacecapital.com/lonely-bull-glossary/title-insurance/): Insurance, usually issued by a title insurance company, which insures a home buyer against errors in the title search.  The cost of the policy is usually a percentage of the property value. - [Title Company](https://riverplacecapital.com/lonely-bull-glossary/title-company/): A company that specializes in examining and insuring titles to real estate. - [Tenancy by The Entirety](https://riverplacecapital.com/lonely-bull-glossary/tenancy-by-the-entirety/): A type of joint tenancy of property that provides the right of survivorship and is available only to joint couples.  This form of ownership may provide additional layer of protection against creditors. - [Sweat Equity](https://riverplacecapital.com/lonely-bull-glossary/sweat-equity/): Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash. - [Survey](https://riverplacecapital.com/lonely-bull-glossary/survey/): A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments and other physical features. - [Subordinate Financing](https://riverplacecapital.com/lonely-bull-glossary/subordinate-financing/): Any mortgage or other lien that has a priority that is lower than that of the first mortgage.  Typically Home Equity Loans (HELOCS) fall under this category. - [Secondary Mortgage Market](https://riverplacecapital.com/lonely-bull-glossary/secondary-mortgage-market/): The buying and selling of existing mortgages. - [Second Mortgage](https://riverplacecapital.com/lonely-bull-glossary/second-mortgage/): A mortgage that has a lien position subordinate to the first mortgage. - [Sale-Leaseback](https://riverplacecapital.com/lonely-bull-glossary/sale-leaseback/): A technique in which a seller deeds property to a buyer for a consideration and the buyer simultaneously leases the property back to the seller. - [Right of First Refusal](https://riverplacecapital.com/lonely-bull-glossary/right-of-first-refusal/): A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.  Right of Ingress or Egress.  The right to enter or leave designated premises. - [Refinance](https://riverplacecapital.com/lonely-bull-glossary/refinance/): The process of paying off one loan with the proceeds from a new loan using the same property as security. - [Real Property](https://riverplacecapital.com/lonely-bull-glossary/real-property/): Land and appurtenances, including anything of a permanent natures such as structures, trees, minerals and the interest, benefits and inherent rights thereof. - [Quitclaim Deed](https://riverplacecapital.com/lonely-bull-glossary/quitclaim-deed/): A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made. - [Qualified Buyer](https://riverplacecapital.com/lonely-bull-glossary/qualified-buyer/): A person who has been pre-approved for a mortgage loan or enough cash to purchase property. - [Purchase Offer/Purchase and Sale Agreement](https://riverplacecapital.com/lonely-bull-glossary/purchase-offer-purchase-and-sale-agreement/): A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. - [Promissory Note](https://riverplacecapital.com/lonely-bull-glossary/promissory-note/): A written promise to repay a specified amount over a specific period of time. - [Private Mortgage Insurance (PMI)](https://riverplacecapital.com/lonely-bull-glossary/private-mortgage-insurance-pmi/): Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults on the loan.  Most lenders require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. - [Prepayment Penalty](https://riverplacecapital.com/lonely-bull-glossary/prepayment-penalty/): A penalty charged for paying off a mortgage early. - [PITI](https://riverplacecapital.com/lonely-bull-glossary/piti/): Princiapl, Interest, Taxes and Insurance. - [Personal Property](https://riverplacecapital.com/lonely-bull-glossary/personal-property/): Any property that is not real (land and items of permanent nature) property (see real property). - [Periodic Rate Cap](https://riverplacecapital.com/lonely-bull-glossary/periodic-rate-cap/): Regarding an adjustable-rate mortgage (ARM), Periodic Rate Cap is a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or how low the index. - [Periodic Payment Cap](https://riverplacecapital.com/lonely-bull-glossary/periodic-payment-cap/): Regarding an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease during any one adjustment period. - [Owner Financing](https://riverplacecapital.com/lonely-bull-glossary/owner-financing/): A property purchase transaction in which the seller provides all or part of the financing. - [Origination Fee](https://riverplacecapital.com/lonely-bull-glossary/origination-fee/): A fee paid to a lender for processing a loan application.  The origination fee is stated in the form of points.  One point is one percent of the mortgage amount. - [Offer to Purchase](https://riverplacecapital.com/lonely-bull-glossary/offer-to-purchase/): A document that lists the price, conditions and terms under which the buyer is willing to purchase the property. - [Note Rate](https://riverplacecapital.com/lonely-bull-glossary/note-rate/): The interest rate stated on a mortgage note. - [Note](https://riverplacecapital.com/lonely-bull-glossary/note/): A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period and terms. Basically, a promise to pay. - [Negative Amortization](https://riverplacecapital.com/lonely-bull-glossary/negative-amortization/): A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover the entire principal and interest due.  The amount of the shortfall is added to the remaining balance to create "negative" amortization. - [Mortgagor](https://riverplacecapital.com/lonely-bull-glossary/mortgagor/): A borrower in a mortgage agreement. - [Mortgage Insurance Premium (MIP)](https://riverplacecapital.com/lonely-bull-glossary/mortgage-insurance-premium-mip/): The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance(MI) company. - [Mortgagee](https://riverplacecapital.com/lonely-bull-glossary/mortgagee/): A lender in a mortgage agreement. - [Mortgage Banker](https://riverplacecapital.com/lonely-bull-glossary/mortgage-banker/): A company that originates mortgages exclusively for resale in the secondary mortgage market. - [Mortgage](https://riverplacecapital.com/lonely-bull-glossary/mortgage/): A lien on the property that secures the promise to repay a loan. - [Loan-To-Value Ratio](https://riverplacecapital.com/lonely-bull-glossary/loan-to-value-ratio/): A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased. - [Joint Tenancy](https://riverplacecapital.com/lonely-bull-glossary/joint-tenancy/): A form of co-ownership that gives each tenant equal interest and equal rights in the property, including the right of survivorship. - [Homeowner’s Warranty](https://riverplacecapital.com/lonely-bull-glossary/homeowners-warranty/): A type of insurance that covers repairs to specified mechanical items of a house such as appliances, air conditioning, water heaters, etc. for a specific time period. - [Homeowners’ Association](https://riverplacecapital.com/lonely-bull-glossary/homeowners-association/): A nonprofit association that manages the common ares of a planned unit development (PUD) or condominium project. - [Hazard Insurance](https://riverplacecapital.com/lonely-bull-glossary/hazard-insurance/): Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism or other hazards.  Typically flood is excluded from this coverage. - [Grantor](https://riverplacecapital.com/lonely-bull-glossary/grantor/): The person conveying an interest in real property. - [Grantee](https://riverplacecapital.com/lonely-bull-glossary/grantee/): The person to whom an interest in real property is conveyed. - [Good Faith Estimate](https://riverplacecapital.com/lonely-bull-glossary/good-faith-estimate/): An estimate of all closing fees including pre-paid and escrow items as well as lender charges; must be given to the borrower within three days after submission of a loan application. - [General Warranty Deed](https://riverplacecapital.com/lonely-bull-glossary/general-warranty-deed/): The type of deed considered to provide the most protection to an owner, since the seller guarantees that he or she is the true owner of the property and that no claim will be brought against the property. - [Flood Insurance](https://riverplacecapital.com/lonely-bull-glossary/flood-insurance/): Insurance that compensates for physical property damage resulting from flooding.  This is typically a separate policy from homeowners insurance. - [Fixed-Rage Mortgage](https://riverplacecapital.com/lonely-bull-glossary/fixed-rage-mortgage/): A mortgage with payments that remain the same throughout the life of the loan. - [First Mortgage](https://riverplacecapital.com/lonely-bull-glossary/first-mortgage/): A mortgage that is the primary lien against a property. - [FHA Mortgage](https://riverplacecapital.com/lonely-bull-glossary/fha-mortgage/): A mortgage that is insured by the Federal Housing Administration (FHA). - [Dynamic Asset Allocation](https://riverplacecapital.com/lonely-bull-glossary/dynamic-asset-allocation/): The process of adjusting asset allocations in response or in anticipation of market conditions.  Particular metrics or benchmarks may be used to determine particular asset weightings.  Changes may be automatically imposed or done by informed judgement.  Asset categories are usually stocks, bonds and cash, but may include others. - [Buyer’s Agent/ Broker](https://riverplacecapital.com/lonely-bull-glossary/buyers-agent-broker/): Buyer's Agent/Broker:  A licensee who has declared to represent only the buyer in a transaction, regardless of whether compensation is paid by the buyer or the listing broker through a commission split. - [Buy Down or Discount Points](https://riverplacecapital.com/lonely-bull-glossary/buy-down-or-discount-points/): Buy Down (Discount Points):  A method of lowering the interest rates on a mortgage, either temporarily or for the entire term of the loan.  Often points are paid up front to make up the difference between the rate actually charged on the mortgage and the rate at which the buyer pays. - [Bridge Loan](https://riverplacecapital.com/lonely-bull-glossary/bridge-loan/): Bridge Loan:  A short-term loan, typically secured by two properties, for borrowers who need more time to sell one existing property before permanently financing the new property. - [Breach](https://riverplacecapital.com/lonely-bull-glossary/breach/): Breach: A violation of any legal obligation. - [Bill of Sale](https://riverplacecapital.com/lonely-bull-glossary/bill-of-sale/): Bill of Sale:  A written document that transfers title to personal property. - [Beneficiary](https://riverplacecapital.com/lonely-bull-glossary/beneficiary/): Beneficiary:  The person designated to receive the income or remaining benefit from a retirement account, trust, estate, or other asset or investment. - [Balloon Mortgage](https://riverplacecapital.com/lonely-bull-glossary/balloon-mortgage/): Balloon Mortgage:  A mortgage that initially offers lower rates for a period of time, for example: 5, 7 or 10 years.  After that period elapses, the entire balance is due or must be refinanced by the borrower. - [Attorney-in-Fact](https://riverplacecapital.com/lonely-bull-glossary/attorney-in-fact/): Attorney-in-Fact:  One who holds power of attorney from another to execute documents on behalf of the grantor. - [Assumption Clause](https://riverplacecapital.com/lonely-bull-glossary/assumption-clause/): Assumption Clause:  A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. - [Assumable Loan](https://riverplacecapital.com/lonely-bull-glossary/assumable-loan/): Assumable loan:  Existing mortgage that can be taken over by the buyer--usually on the same terms given to the original buyer. - [Assessed Value](https://riverplacecapital.com/lonely-bull-glossary/assessed-value/): Assessed Value: The valuation placed on property by a public tax assessor for purposes of taxation. - [Amortization](https://riverplacecapital.com/lonely-bull-glossary/amortization/): Amortization: Reduction value of an asset determined by prorating its cost over a certain amount of time.  Repayment of a mortgage loan through monthly installments of principal and interest. The monthly payment is based on a schedule that will allow you to own your home at the end of a specific time period.  Most typically are 15 or 30 years. - [Appraisal](https://riverplacecapital.com/lonely-bull-glossary/appraisal/): A document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. - [Ad Valorem Tax](https://riverplacecapital.com/lonely-bull-glossary/ad-valorem-tax/): Tax based on assessed property value. - [Crowded trade](https://riverplacecapital.com/lonely-bull-glossary/crowded-trade/): Crowded Trade:  Positions that are popular among investors.  These could be popular stocks to own or perhaps short.  These same positions can be seen in the portfolios of many large institutions. - [AUM](https://riverplacecapital.com/lonely-bull-glossary/aum/): AUM:  Assets Under Management; a measure investment institutions use to indicate size. - [Addendum](https://riverplacecapital.com/lonely-bull-glossary/addendum/): Addendum: An addition or change to a contract. - [Abstract of Title](https://riverplacecapital.com/lonely-bull-glossary/abstract-of-title/): Abstract of Title: A history of ownership of a property and any documents that affect the title during that ownership. - [Zero Coupon Bond](https://riverplacecapital.com/lonely-bull-glossary/zero-coupon-bond/): Zero Coupon Bond - [Zero Coupon Callable Bond](https://riverplacecapital.com/lonely-bull-glossary/zero-coupon-callable-bond/): Zero Coupon Callable Bond - [Yield-to-Worst](https://riverplacecapital.com/lonely-bull-glossary/yield-to-worst/): Yield-to-Worst - [Yield-to-Maturity](https://riverplacecapital.com/lonely-bull-glossary/yield-to-maturity/): Yield-to-Maturity - [Yield-to-Call](https://riverplacecapital.com/lonely-bull-glossary/yield-to-call/): Yield-to-Call - [TransUnion](https://riverplacecapital.com/lonely-bull-glossary/transunion/): TransUnion - [Term](https://riverplacecapital.com/lonely-bull-glossary/term/): Term - [Tax lien](https://riverplacecapital.com/lonely-bull-glossary/tax-lien/): Tax lien - [Simple interest](https://riverplacecapital.com/lonely-bull-glossary/simple-interest/): Simple interest - [Short-term Debt](https://riverplacecapital.com/lonely-bull-glossary/short-term-debt/): Short-term Debt - [Settlement Date](https://riverplacecapital.com/lonely-bull-glossary/settlement-date/): Settlement Date - [Secondary Market](https://riverplacecapital.com/lonely-bull-glossary/secondary-market/): Secondary Market