August 15, 2019

During periods of volatility, or in anticipation of volatility, or just about any day of the week, it’s common to speak to a client or two about market volatility. The questions are often similar: “How can I get market returns with less risk?” Or, “Can’t we sell everything and go back in when things settle down?”

Source: Direxion Funds

August 15, 2019

• GOING, GOING, GONE – 7,037 American retail stores have closed YTD through 6/30/19, already exceeding the 5,864 closures that occurred during all of calendar year 2018. This year’s store closures are on pace to exceed the all-time record of 8,139 from 2017 (source: Coresight Research).

• LONGEST IN HISTORY - The US economic expansion began its 11th year (i.e., 121st month) a week ago today on 7/01/19, making it the longest-running expansion in our nation’s history based upon government data that has been maintained since 1854 or for 165 years (source: National Bureau of Economic Research).

June 30, 2019

When the U.S. stock market goes up, it’s only logical to question why there’s a need to own anything but U.S. stocks. That argument can be further bolstered by pointing out how many U.S. companies derive sales from international markets. “If I own Coca-Cola, aren’t I invested internationally?” 

June 30, 2019

It’s possible you may have heard the term inverted yield curve by reading about it in a financial publication¹ or while aimlessly surfing through the 500 channels offered by your cable provider.

Source: Direxion Funds

June 30, 2019

• THERE HAVE BEEN A DOZEN TUMBLES – During the index’s bull run that started on 3/190/09, the S&P 500 has withstood 12 drops of at least 5%, including 6 drops of at least 10% and 3 drops of at least 15% (source: BTN Research).

• AGING POPULATION – Between 1950 and 2018, the US population doubled from 159.1 million to 332.8 million while the number of Americans at least age 65 quadrupled from 12.8 million to 52.4 million (source: Social Security 2019 Trustees Report).

May 15, 2019

Many investors aren’t aware of the concept of fee-only financial planning, so we’re sending along the article below from Financial Planning Magazine¹ because it’s the best one we’ve seen written on the subject in years.

Written by Bob Veres, a well-respected industry observer for decades, it’s clearly sarcastic in tone. It’s intent, however, is to point out the players in the personal finance marketplace and the incentives behind their compensation.

Source: Direxion Funds

May 15, 2019

• FUTURE PLANS - 48% of households in America headed by individuals at least age 55 have no retirement savings, 26% have a defined contribution (DC) plan (e.g., 401(k) or IRA) but no defined benefit (DB) pension plan, and the remaining 26% have both a DC and a DB plan (source: Government Accountability Office).

• PREPARE FOR IT - A 65-year old American couple has a 48% chance that at least one of them will live to age 90, i.e., at least a 25-year life expectancy (source: Social Security Administration).

• END OF LIFE - 1 out of 3 Americans at least age 85 has Alzheimer’s (source: The Atlantic).

March 31, 2019

By: John Zeltmann

Stan and I will both tell you we have one of the greatest jobs in the world. Helping people plan for their retirement while making financially sound decisions during their working years is an incredibly rewarding vocation. Daily, we get to help people figure out how to reduce tax bills, determine appropriate levels of life insurance, plan for college, and prudently grow their portfolios over time. Those are just some of the highlights.

When we have those types of conversations with the children of our clients, the rewards can be just as profound. 

Source: Direxion Funds

March 31, 2019

• ALMOST ALWAYS - Since 1950, there have been 60 different 10-year periods (i.e., the 10-years from 1950-59, 1951-60, 1952-61, . . . 2009-18). The S&P 500 has produced a positive total return result in 58 of the 60 decade-long periods, i.e., 97% of the time. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight in the index proportionate to its market value (source: BTN Research).

• ECONOMIC DOWNTURN - 9 of the last 10 recessions in the United States began under a Republican president going back 66 years to 1953. The only recession over this time span that began with a Democratic president in the White House was a 6-month recession that began in January 1980 during Jimmy Carter’s last year as president (source: National Bureau of Economic Research).

February 15, 2019

Financial planning is part art and part science. The science portion relates to the use of academic studies to construct portfolios with various levels of risk that can be used to provide retirees a certain level of income for their lifetime. The art element is equally important because we deal with individuals, and each individual has unique needs, disciplines, and tolerances.