OK - it stinks that we lost the 2016 Olympics to Brazil, but at least from an investment perspective, there may be a silver lining here after all.
OK - it stinks that we lost the 2016 Olympics to Brazil, but at least from an investment perspective, there may be a silver lining here after all.
As stock markets around the globe start to rev up again, the siren call of higher returns will get louder and louder. The recent crash may have jolted you out of your slumber in terms of your asset allocation; you probably have more in bonds than you did before the crash, but that new pragmatic approach to investing may not stand a chance against the temptation of higher returns. Of course, with higher returns comes higher risk.
Before you make any significant changes to your portfolio, I highly recommend reviewing your short-term and especially your long-term financial goals. Taking on more risk while the stock market is doing well may feel like the smart thing to do, but the question to ask yourself is this: What’s the least amount of risk I need to take in order to reach my goals?
As our country racks up more and more debt, the U.S. Dollar depreciates further and further. Right now it’s a slow, drip, drip drip. It may be the case; that the dollar gradually heads lower during the next decade. Or, we could see this process accelerate overnight. No one knows for sure.
Over the past few years, I have formed strategic relationships with some key firms that offer well thought out and sound approaches to investing in currencies other than the U.S Dollar. These are firms with excellent reputations and decades of proven performance.
There’s a large amount of investors sitting on the sidelines, parking their money in treasury bills, CD’s or money market accounts too scared to make a move. For those that lost a lot of money during the recent crash and need their investments to grow in order to fund their retirement, this may not be your best move.
If you lost a lot of money in the recent crash, you were probably too heavily invested in stocks. Now’s the time to take a good and honest look at what happen, see what lessons you learned from the experience and make plans for the future. The past is just that, the past and now it’s time to plan ahead.
Now that the dust has settled from the Great Recession and people are finding the courage to look at their investment statements once again, a new reality is setting in for many people as well as many new questions. How do I retire with enough financial security so I don’t have to worry about money and how long will it take to rebuild my nest egg?
It’s hard to know how long it will take for the stock market to fully recover and the same holds true for the real estate market. Even jobs that once felt very secure no longer feel that way in this post crash economy. With so much out of your control, what can you control? The answer is and always will be your spending.
You may have noticed the vast amount of new products being churned out by Wall Street lately. Now I’m all in favor of more options, yet the amount of new “products” being introduced to investors on a daily basis is staggering. Besides regular old fashioned mutual funds, stocks and bonds, we now have a slew of ETF’s, ETN’s, ishares, global ETF’s, brand new sector funds, and the list goes on. The marketing departments of these large investment houses are well aware that investors like the shiny new objects in the window and as such are catering to our need for buying something new and exciting. Index funds, diversifying your portfolio is so 2008 they’ll tell you, come over here and play the new game…
I like ETF’s and for many investors, they compliment your investment portfolio very nicely. But just because the marketing departments have sliced and diced markets into a zillion new ways to invest, doesn’t mean that it’s the right option for you.
Below are some top five listings that may be of interest to you. This is purely for educational purposes and does not constitute a recommendation to buy. As always, do your own research before making any decisions. The results below are year to date for 2009:
Top 5 Performing Vanguard Mutual Funds:
Is this a bear market rally we’re witnessing in the stock market or the beginning of a stock market recovery? Do I get back into the market now or wait a little longer? If I do get back in, what do I buy?
These are just a few of the many questions I’ve been asked recently. After the recent drubbing we received from the stock market crash, these are not decisions to be made lightly.
I have an old friend that loves to gamble. His game is blackjack and he actually wins quite often. He was a math and physics whiz in college and believes he has the advantage in any casino he enters. That said, he does have one particular old habit that causes him to lose and lose big at times. If he’s on a losing streak, he’ll keep doubling down in order to make up for the losses he has incurred.
At times, I have watched him lose spectacular amounts of money with this strategy. So what does this have to do with financial planning and investing? Allow me to share with you what I see happening at the moment.
With the stock market finally showing us some love after a brutal 8-9 months of wild rollercoaster rides, it’s easy to slip into old habits and trick yourself into thinking the good old days are around the corner. As President Obama said today, there are glimmers of hope that the economy may be turning a corner. Add to the mix a general consensus form many leading economists that the recession may end in September and you have a positive outlook for the future.
If you’ve been saving money, maybe for the first time in a while, but you sense the stock market is headed back up so you’ll take it easy and put your newly found saving habit on hold, please reconsider. If you have been flexing your frugal muscle and now with some good news from the market you’re feeling that familiar pull to spend, stop, think about what you’re spending the money on, is it a need or a want, can you live without it for now, and then go back to saving more.