Any Bulls Left?

Presented by Rose Greene, CFP The number of bulls is dwindling. In periods of extreme market volatility such as we have experienced in recent weeks — and Friday, January 15, 2016, in particular, when the Dow was down over 500 points at one point before paring losses — we find it helpful to try to take some of the emotion out of our investment decisions. As difficult as that can be at times, this approach can help us reduce the chances of selling at the bottom, even though the natural reaction for many is to panic and hit the sell button. One way to help measure how close to the bottom stocks may be is to use sentiment indicators to identify extremes in bullishness and bearishness. When the bulls are all washed out, in theory, there are few sells left to put more pressure on stocks. In this case, extreme bearishness can be viewed as a contrarian indicator and may signal that selling could be near an end. Technical analysis can also help identify key price levels that may signal breaks in either direction. These tools can give us an idea of when the selling might stop and a reversal might ensue. An objective look at some data can be reassuring and help...
Read More →

Smart Financial Moves in Your 20s, 30s, 40s & 50s

If you had a timeline of the financial steps you should probably take in life, what would it look like? Answers to that question will vary, but certain times of life do call for certain financial moves. Some should be made out of caution, others out of opportunity.     What might you want to do in your twenties? First and foremost, you should start saving for retirement – preferably using tax-advantaged retirement accounts that let you direct money into equities. Through equity investing, your money may grow and compound profoundly with time – and you have time on your side. As a hypothetical example, suppose you are 25 and direct $5,000 annually for 10 years into a retirement account earning a consistent 7%. You stop contributing to the account at age 35 – in fact, you never contribute a dollar to it again. Under such conditions, that $50,000 you have directed into that account over ten years grows to $562,683 by the time you are age 65 with no further action from you. If you contribute $5,000 annually to the account for 40 years starting at 25, you end up with $1,068,048 at 65.1  Aside from equity investment, you will want...
Read More →

Why You Should Stay in Stocks in 2016

Presented by Rose Greene, CFP One bad trading day is not the year. The stock market has wavered recently. A lackluster year just ended, and this year has started inauspiciously. You may be wondering … should you really be invested in stocks right now? In moments like these, investors should not panic and overreact to the headlines. Instead, they should take the long view of stock market investing. Impulsive selling now can lead an investor to try and time the market later, and market timing may lead investors to make mistakes. Stock market investing is a long-run proposition. On a bad day, it may seem like the whole market is falling apart – but stock market performance is not measured only in days. Consider the following statistics, which highlight some underpublicized truths: **Even with their poor showing in 2015, stocks have advanced notably in the last three years. Across 2013-15, the Dow Jones Industrial Average gained 9.97%, the Nasdaq Composite 18.37%, the S&P 500 12.74%, and the small-cap Russell 2000 index 10.18%. The Dow Jones Internet index advanced 28.85% in those three years, the Nasdaq Biotech index 35.26%.1 **Just recently, the Dow Jones gained 7.00% in a quarter. The Nasdaq...
Read More →
1 2 3 116
Be Sociable, Share!