Equity – Fritz Mowery

Reasons to Hire a Financial Advisor during These Tough Times

Investment professional Frederick Eugene “Fritz” Mowery possesses over three decades of industry experience and has led his customers through financial and market crises. Fritz Mowery, through his investment company Mowery Capital Management, LLC, successfully guided his clients’ investments through several epidemics, including the SARS epidemic in 2003, swine flu in 2010, Ebola virus in 2015, and recently, the COVID-19 virus.

Since the Great Depression in 1929, the investment sector has experienced large percent declines in 1937, 2001, and 2008. According to American Funds, one year after reaching each of these lows, the stock market had already bounced back an average of 70.94 percent.

Like Mr. Mowery, investment experts have suggested waiting to take advantage of more prominent companies’ lower prices than rushing to sell. It’s possible to experience a drop of 10 percent or more in stock market prices and still earn a good profit at the end. Having an experienced investment advisor helps investors to stay calm and avoid an adverse reaction while biding time till the price returns.

In the long run, equity value depends on longer-term corporate earnings, driven by inflation, innovation, business investment, interest rates, and the regulatory environment. All these factors are conducive to long-term growth, even with the spread of the coronavirus.

Overview of Debt and Equity Securities

Fritz Mowery, the chief investment officer and president of Mowery Capital Management in Dallas, Texas, has been working in the finance sector for more than 30 years. During that time, Fritz Mowery has strengthened his knowledge with various securities.

Securities are financial instruments that have some monetary value. This includes bonds, exchange-traded funds, and stocks. Securities can be traded between multiple parties. Securities are further divided into several different types, the most common of which are debt and equity securities.

Equity securities are company stocks. Investors who purchase this publicly-traded stock own a piece of the company that sold the share. They receive money from their investment by either selling the stock later on at a higher price or taking dividends from the business. Stocks are riskier due to their higher level of volatility. it is possible to lose money when selling stocks or bonds.

Meanwhile, debt securities represent borrowed money that must be repaid. This most often includes certificates of deposit and corporate and government bonds. Also known as fixed-income securities, debt securities can grant investors periodic fixed-interest payments in return for them lending money to another entity.

The Difference Between Fixed Income and Equity Investments

A Texas-based financial leader who has more than three decades of experience in the investment advisory field, Fritz Mowery serves as the president and chief investment officer of Mowery Capital Management, LLC. Through his fee-only investment advisory firm, Fritz Mowery manages fixed income and equity portfolios for clients.

Generally, investments are categorized as either fixed income or equity investment products. Of the two, equity investments are riskier. They include stocks or stock mutual funds. Purchasing these stocks grants investors an equity stake in a corporation and, depending on the type of stock purchased, gives them the right to vote on certain corporate decisions. If the company performs very well, investors enjoy large returns on their investment. Unfortunately, the opposite is also true and investors can lose most or all of their investment if the company performs poorly.

On the other hand, fixed-income investments include lower-risk investments, such as government bonds or bank certificates of deposit (CDs). These investment options cannot give investors as large of a potential return as equity investments, and some fixed-income products struggle with keeping pace with the rate of inflation. However, they are associated with much less risk than equity investment options, thus making them great investment options for people who have low-risk tolerance or prefer a safer investment experience.