Millennial Investors Have These 3 Key Advantages

Young people have historical trends on their side. Financial literacy month is over, leaving in its wake dozens of new surveys showing millennials are awash with financial obstacles, from insufficient savings to high debt. But it pays to take at least some of the doom and gloom with a grain of salt. Look harder and you’ll see that many of the surveys showing millennials need help with saving or student debt were commissioned by financial companies selling — unsurprisingly — advice and loan refinancing. “People always talk about ‘kids these days,'” said Kansas City financial planner Cindy Richey. “But this generation has witnessed their parents’ mistakes and seen what happens if you don’t save enough for retirement. They might struggle at first, but I think they’ll be able to create a better financial future.” Indeed, more young people today are investing in workplace retirement plans — with larger savings and greater stock allocations — compared with a decade ago. And millennials have more than just 401(k) plan auto-enrollment working in their favor; thanks to trends in the financial industry, investing to build long-term wealth has never been cheaper or easier. Here are three big reasons to be bullish on millennial...
Read More →

Good-Bye April, Hello May

The historically bullish month of April was able to eke out a gain last month. Now the worst six months of the year, historically, are up next. Here is a review of last month, along with a preview of May and beyond. April Review The S&P 500 gained 0.3% for the month, which came on the heels of a 6.6% gain in March. April has now finished green in 10 of the past 11 years. Including last month, a month with a 6%+ gain has been followed by a positive month 11 of the last 13 times. Energy, materials, and financials were the top three sectors, while utilities and tech lagged last month. The incredible streak of 10 consecutive weeks with a higher weekly low for the S&P 500 ended last week. The month ended by going 12 straight days without a 1% move (up or down) and finished with only four 1% moves for the entire month. This came on the heels of just three 1% moves in March. Compare that with the 23 combined that took place during the first two months of 2016. Volatility has calmed down considerably. May Preview Since 1950, the S&P 500 in May...
Read More →

Terrorism & the Financial Markets

Wall Street has the potential to recover quickly from geopolitical shocks. In the past few months, the world has seen several high-profile terrorist attacks. Incidents in the U.S., Belgium, Pakistan, Lebanon, Russia, and France have claimed more than 500 lives and injured approximately 1,000 people. Beyond these incidents, many other deaths and injuries have been caused by terrorist bombings that garnered less media attention.1,2 As an anxious world worries about the ongoing threat posed by ISIS, the Taliban, al-Qaeda, Boko Haram, and other terror groups, there is also concern about the effect of such incidents on global financial markets. Wall Street, which has had a trying first quarter, hopes that such shocks will not prompt downturns. Even in such instances, history suggests that any damage to global shares might be temporary. While geopolitical shocks tend to scare bulls, the effect is usually short-term. On September 11, 2001, the attack on America occurred roughly at the beginning of the market day. U.S. financial markets immediately closed (as they were a potential target) and remained shuttered the rest of that trading week. When Wall Street reopened, stocks fell sharply; the S&P 500 lost 11.6% and the Nasdaq Composite 16.1% in the week...
Read More →
1 2 3 119
Be Sociable, Share!