August 7, 2017
hired a financial planner

Why I Hired a Financial Planner

Why I Hired a Financial Planner One of my favorite Warren Buffet quotes is, “Lethargy, bordering on sloth should remain the cornerstone of an investment style. This year we neither bought nor sold a share of five of our six major holdings.” The second richest man in the U.S. is advising us that investing should be boring. Basically, he wants to remind us that there are two major factors to achieving success. The first is time. The other is allocation. Both of which are on your side. And considering his successes, mimicking his investing style probably isn’t a bad idea.
November 15, 2016

A Week of Surprises

Last Tuesday, many Americans watched in great surprise as Donald Trump won our presidential election. Just that day, the New York Times had placed Hillary Clinton’s odds of winning at 85%, based on a range of state and national polls. But, like the Brexit vote this past June, 2016 seems to be the year of unexpected outcomes. As predicted, the markets initially reacted to uncertainty as they often do: with losses. Futures for the Dow, NASDAQ, and S&P 500 all dropped at least 4% in the middle of the night after Trump’s win. But come Wednesday morning, everyone was in for another surprise. Despite many predictions that the markets would sell-off if Trump won, all of the major U.S. indexes ended the week ahead. The S&P 500 was up 3.80%, the Dow gained 5.36%, NASDAQ increased 3.78%, and MSCI EAFE added 0.05%. The Dow even closed at an all-time high on Thursday and posted its best week since 2011, despite being slightly down on Friday. Needless to say, these two developments last week gave significant surprises for most people. Let’s look a bit deeper at the market’s reaction and what may lie ahead. Understanding the Rally The markets hate uncertainty, […]
August 18, 2016

VIDEO: August Educational Stock Market Update ~ Why we don’t panic!

August Educational Stock Market Update ~ Why we don’t panic! Hey Guys, this is Justin Goodbread from Heritage Investors with an educational economic update for August 2016. In this month’s video, we’ll talk about some of the events that influenced markets in July, and give you some insight into what they could mean for you as an investor. Please stay tuned at the end for a required disclosure statement. Markets had a lot to think about in July. A British exit (BREXIT), interest rates, and earnings season all affected market movements last month. After dropping sharply at the end of June following Britain’s vote to leave the European Union, markets regained steam and rallied for four straight weeks, pushing the S&P 500 and Dow to new records. We often talk about the importance of not overreacting to market declines. This is the reason why. We can’t predict how markets will perform after a shock, but the biggest market days often come shortly after a pullback. Calmly assessing the situation and avoiding emotional responses is a smart strategy for long-term investors. Ok, let’s talk about some of last month’s economic events. The Federal Reserve held another Open Market Committee meeting at […]
August 8, 2016

SP 500 at New High After Jobs Blowout

“SP 500 at New High After Jobs Blowout”, WEEKLY UPDATE – August 8, 2016 Stocks bounced last week, ending sharply higher after a better-than-expected jobs report. For the week, the SP 500 gained 0.43%, the Dow rose 0.60%, the NASDAQ added 1.14%, but the MSCI EAFE lost 1.41%.[1] SP 500 Among last week’s major events was a shockingly good July jobs report. Last month, the economy added 255,000 new jobs, blowing away expectations of 180,000 jobs.[2] Even better, the gains were broad-based and the labor force participation rate (an area of concern because fewer people in our population were actively participating in the labor force) ticked upward.[3] Overall, not too shabby. Headline unemployment remained stable at 4.9%, but that single number hides a lot of complexity. Let’s dig a little deeper. The chart below shows six different measures of unemployment, each slicing the data in a different way. The U-6 unemployment rate is the most comprehensive, showing total unemployed, marginally attached workers (discouraged workers and those considered barely employed) and those total employed part time for economic reasons.[4] You can see that all measures rose during the recession and have been steadily dropping ever since. While headline unemployment (U-3 unemployment in official […]