Investing during troubled times: Navigating North Korea and hurricanes Harvey and Irma
The past few weeks have been unusually turbulent. North Korea has tested what is reportedly a hydrogen bomb and launched a missile over Japan; as a result, the U.S. is openly considering war. Hurricane Harvey has been the most damaging storm ever, devastating both Texas and Louisiana. And now we have Hurricane Irma, the most powerful Atlantic storm in history, approaching Florida. Given these events, there are certain questions that investors should be asking themselves. That is, should we be doing something different? If so, what?
Info security alert: Equifax breach affects 143 million customers.
The good news is that many Equifax executives sold their stock shares after they knew what happened, but before the public knew…..whew….now we can all rest easy knowing they won’t miss the loan payments on their yachts. However, for the rest of us who may be negatively affected by having some of our most valuable information exposed, here are some steps to take to protect your personal info.
The role of financial planners: Lessons from Nashville.
Yesterday, I was down in Nashville speaking at the Financial Planning Association’s national meeting. It was an interesting time! Speaking with the young man at the coffee shop, our conversation went something like this: “I’m from Alabama.” “How did you get here?” “Like everybody else, music.” Clearly, this is a one-industry town, from the convention center (the Music City Center) to the signs for the Grand Ole Opry.
Is it time to worry about a trade war?
On March 1, 2018, President Trump announced that the U.S. plans to impose tariffs on steel and aluminum imports. Markets around the world were shocked by the news, with major U.S. indices declining more than 1 percent just when it looked like they were recovering from the February downturn. Why did markets react so strongly? Is this a more serious threat going forward? In a word, yes.
A guide to federal veterans benefits.
Eligibility for medical and monetary benefits depends on your discharge status. Generally, a veteran will satisfy the discharge requirement if his or her classification is “honorable” or “general under honorable conditions.” A veteran with a discharge classification of “other than honorable conditions,” “bad conduct,” or “dishonorable” may not be eligible for VA benefits.
2018 mid-year outlook: Will the economy and markets keep growing?
After the performance we saw last year, we had high hopes for the economy and markets in 2018, but the first half of the year was disappointing. Expectations softened as the stock market pulled back early in the year, economic growth slowed, and risks—largely in trade—rose. As we hit midyear, though, those initial hopes appear to be more realistic than they were even a month ago.
Is this the beginning of the end?
With the recent two-day drop in the stock market, there is increasing fear that this is it—the big one that will take us back to the depths of 2008. Although that level of concern is certainly understandable, a closer look at the real economic and market situation around the world suggests that the volatility we are now seeing (and may well continue to see) is perfectly normal. Over time, this kind of turbulence is why stocks can yield the returns they do.
Still, how do we know whether this decline is normal and whether we’re headed for another 2008? Is there a way to tell?
Caring for an aging parent.
Caring for aging parents can be a difficult planning aspect to balance. If you are among the “Sandwich Generation,” you may be trying to support your aging parents as well as your own children. Today, individuals are living longer than before, so it is better to be prepared.
The beginning of the end: A look at October 2018 market volatility.
Not for the first time, October was a difficult period for the stock market. With the drop seen over this past month, there is increasing fear that this is it—the big one that will take us back to the depths of 2008. Although that level of concern is certainly understandable, a closer look at the real economic and market situation around the world suggests that the volatility we are now seeing (and may well continue to see) is perfectly normal. Over time, this kind of turbulence is why stocks can yield the returns they do.
Market panic: December 2018 edition.
Why is everyone so worried? Why do people think a recession is looming? I don’t have that answer, but just because we haven’t had a recession in ten years doesn’t make it any more likely.
It’s okay to feel nervous and it’s okay to ask your advisor what’s going on with your accounts, but making a change because of non-quantifiable worries vs. quantifiable facts is likely going to be a mistake.
Another one of those days.
It’s another one of those days. Everything sells down on the market and bad news seems everywhere. Today the sell off was a result of Apple lowering guidance. I guess for some odd reason the Chinese are buying fewer phones because they are pissed off at America about the tariff and trade issues.
The worries on the market ebb and flow like the tides.
Last autumn, the worries were in full force are we nearing a recession, is inflation coming, is this the big market correction, will the trade war escalate, will we have a lasting government shutdown, and many more. Consequently, the market had a big drop in Q4 of last year, bottoming on Dec 24 with a drop of about 20% in 3 months.
What you need to know about TOD accounts
A relatively new option for clients, transfer on death (TOD) accounts offer a unique beneficiary feature. Unlike similar non-retirement accounts, TOD accounts allow investors’ assets to transfer directly to their designated beneficiaries when they pass away, circumventing the probate court process. The TOD registration, which is available for both individual and joint accounts, not only streamlines the account disbursement process, it also lets account holders rest assured that their beneficiaries will receive the intended amount of assets.
Survivor’s financial reminders: Death of a spouse
The death of a spouse or life partner is difficult enough without having to make decisions about a host of financial issues. To help minimize stress when this sad time arrives, the following list provides a framework for organizing your financial affairs and those of your partner.
Common tax traps involving life insurance
Life insurance delivers cash to beneficiaries when it’s needed most. Plus, if the policy is properly structured, the beneficiaries receive the death proceeds income tax free. By understanding potential tax traps related to life insurance, you can avoid costly mistakes. A few of the most common pitfalls are outlined here.
Virus hysteria
s we are all aware this last 3 weeks has been bad for the stock market. The market has dropped just under 20% from the peak as of yesterday’s close. Many of you are nervous and that is understandable. Over the last few weeks, a virus scare has become a hysteria. In my 22 years as a financial advisor I have never seen a hysteria quite like this one. In a small way it reminds me of a more extreme version of Y2K scare … stockpiling dry goods, worry about the unknown, and massive media hype playing into the worst parts of our fears.
Another look at the dollar: The Fed and interest rates
One of the reasons behind the recent decline of the dollar is reportedly the fact that the Fed has largely committed to keeping rates low—the market believes—forever. Looking at the yield curve, the 30-year Treasury rates are at 1.22 percent as I write this. With rates that low, the value of the dollar would certainly take a hit if other central banks raised rates.
Embracing America’s colorful future
The COVID-19 pandemic has exacerbated many issues that have been plaguing the social fiber of our nation for many years, including racial discrimination and economic and gender inequalities. Communities, governing organizations, and companies have responded by enacting regulations, guidelines, and programs that address these issues while also emphasizing the changing preferences of consumers.
Positive March wraps shaky quarter for markets
Equity markets partially bounced back in March, driven by a strong run in the second half of the month. The S&P 500, Dow Jones Industrial Average (DJIA), and Nasdaq Composite gained 3.71 percent, 2.49 percent, and 3.48 percent, respectively. Despite the solid results in March, all three indices finished the quarter in the red due to drops in January and February. The S&P 500 lost 4.60 percent in the first quarter, the DJIA dropped 4.10 percent, and the technology-heavy Nasdaq Composite fell 8.95 percent.
A closer look: Why is the stock market going down?
First of all, the stock market doesn’t directly reflect the economy. There is a link, but what the stock market really tracks is two things: corporate earnings and interest rates. Earnings, of course, grow when the economy grows. When interest rates are reasonably steady, the market does grow with the economy. Since interest rates are steady most of the time, we tend to think that the market tracks the economy.