After talking with a number of clients and friends in the past couple of weeks it became apparent that a breakdown of YTD stock market performance would be informative. There are major pronounced differences currently in the various stock categories. An explanation of these differences could illuminate why certain portfolios have gone up (or down) more than others.
Please note that this discussion is not meant to minimize the importance of performance. Performance is critical; however, the time frame of performance evaluation and the concept of progress toward achieving goals are even more critical to successful investing.
Married, Single, Divorced or Widowed – women tend to live longer than men. There are also new statistics of how mentally sharp and physically fit women stay longer into life. Why is this important? If you guessed that these facts mean that women need to save and invest more then you guessed right. Men AND women, please keep reading!
How many times in the past going on 10 weeks has someone said to you, “Hang in there”? How many times have YOU perhaps said to someone you care about, “Hang in there”?
Hanging in there is often all we can do – and a brave thing to do at that. When it comes to tough markets like the ones we are currently experiencing, “hanging in there” translates to discipline in the midst of bravery. Discipline and bravery are two of the ultimate challenges in life.
Originally titled, “Gut Check in Rocky Markets” but with a new twist the following excerpted edition from the archives of TGIF 2 Minutes is timely on (Not So) Fat Tuesday. Please keep in mind three new factors:
The political divide currently in the US is adding to market tensions and even politicizing the Coronavirus,
Primary Elections and Debates and the policy issues being brought forth are next-to-center stage in the media,
A still very recent UP 29% equity market in 2019,
and there exist the makings of a potential market correction. A market correction is defined as a decline of 10% from a recent high; the US equity markets are down over 6% in two days and are nearing an official “market correction” in 2020.
It is still early in the year – there is still plenty of time to evaluate how to start or tweak a savings and investing plan. In fact, it is ALWAYS a good time (January, February, March, July, October, December…) to evaluate savings and investing. But after the amazing past year and decade in US and global stock and bond markets, it may cross your mind to say,
“Should I wait to invest?”
“How can markets keep going up, up, up?”
“I need to jump on the bandwagon here!”
“Growth stocks are the way to go! I have stock ideas!”
My Father loved municipal bonds. The coupons were high (certainly higher than the average coupon rates of today) and supply was ample. And he loved the story behind the bond.
As a quick primer, “muni bonds,” otherwise known as municipal bonds, are debt obligations issued to fund capital expenditures by municipalities, states, counties and other government and public service-related entities like hospitals and schools. The tax treatment of the interest paid is typically Federally tax-free to the investor and often state tax free in the state where the bond was issued. Investors who buy the bonds are promised to receive tax free interest periodically and then repayment of principal upon maturity. Continue reading “Not Your Father’s Muni Bonds”
Remember the original, first run of the movie, Rocky? Even if you were not around (or born) in 1976 to see the movie in person, you probably know the theme song and the story by heart. The film is timeless.
Investing advice can be timeless as well. Here are several pieces of professional advice and perspective that I have come to firmly believe in my over 30 years in financial services and would like to pass on to you: Continue reading “Timeless Investing Advice”
It is nearing year-end and I cannot emphasize enough how important it is to double-check certain items NOW. The best financial advisers can and should be drawing your attention to these items in order to make your year-end easier and less stressful.
Here is a list of questions I review annually with clients:
Yikes! Now I am resorting to positive comments about the Bosox. Don’t worry fellow NY Yankee fans! It’s only to make a point about the markets and investing.
The season is Fall and that means it isWorld Seriestime. This year’s match-up features the LA Dodgers versus the Boston Red Sox, who now lead the series 2-0. The purely baseball fan in me read with excitement the news about Game 2 Wednesday night. The statistics for Boston read like a smart, steady investor’s style: “sufficient but not overwhelming.”* Boston’s 4-2 win contained zero home runs. Rather, they beat their opponent “on a collection of timely singles and one spectacular catch.”