June 30, 2017

Snapchat has been in the headlines recently.  At first, they were the darling of the initial public offering (IPO) space, with investors clamoring for a chance to purchase the company stock.  The first act of that play ended on a high note: on the day of their IPO, March 2, 2017, the stock price finished up 44%, rising from an issuing price of $17 per share to later close at $24.48.  Not a bad way to send the audience off to intermission.

Then came Act 2.  

June 30, 2017

I’ll assume that all of us spend the money each year to pay the premiums for homeowner’s insurance, whether you’re a renter or a homeowner. But should a calamity impact your home, such as a fire, have you thought about how you would file a claim? While you might have a policy for certain pieces of jewelry, or works of art, do you have a written description of all your furnishings? Other collectibles? Family heirlooms?

June 30, 2017

We continually try to share information so our clients understand why we do what we do. Why we build diversified portfolios, or why we sell some equities when the stock market is going up and everyone feels euphoric, and buy them when the market drops and everyone is cowering in fear. Why we encourage those in the marketplace to work a little longer and why we encourage those who are retired to spend just a little less.

Source: Direxion Funds

June 30, 2017

By the numbers…....

• The personal savings rate in the US was 5.9% as of 3/31/17. The personal savings rate in the US was 1.9% as of 7/31/05, a record low in the country.

• Of the 3.14 million high school graduates in 2016, 2.19 million began college in the fall of 2016 (i.e. 70% of high school graduates went to college).

• Just 1% of Americans are responsible for 21% of healthcare expenditures in the US. Just 20% of Americans are responsible for 82% of healthcare expenditures in the US.

May 15, 2017

Seniors, many with the help of their adult children, will ultimately face a multitude of issues as they age. Addressing them sooner than later can contribute to a long, happy, and productive retirement.

May 15, 2017

Writing in MONEY.com, Nancy K. Schlossberg, a professor emerita of counseling and personnel services at the University of Maryland, reiterates the words of Coughlin: “Succeeding in retirement is about more than money.”¹  As part of her new book: Too Young to Be Old: Love, Learn, Work and Play as You Age, Schlossberg groups retirees into six paths. “Any of these routes can be right for you (with one exception), and thinking about retirement this way can help you get comfortable with your new identity.”

May 15, 2017

You may recall reading about the VIX Index in this space, which many view as a type of fear gauge for Wall Street.  According to a recent article in the New York Times¹, for the first time in more than 10 years, it dipped below 10, which means investors don’t anticipate an imminent market decline. (The historical average of the VIX is around 20.)  With the market near record highs, and the VIX near record lows, contrarians must be licking their lips in anticipation of the windfall they think they’ll make. Their logic: everyone is happy, so nothing good can come next. But contrarians are not always right; they just tend to take the opposing view.

May 15, 2017

If you have a smartphone, you’ve probably used it for all the obvious tasks: phone calls, text messaging, e-mail, FaceTime, directions while driving (or walking), etc. In addition, the reporters at MONEY Magazine have identified their top apps¹ to save you money while shopping.  Click to read more.

Source: Direxion Funds

May 15, 2017

By the numbers…....

• The last time that the S&P 500 was up on a total return basis for the 1^st quarter yet finished down for the full calendar year was 2002. (The S&P 500 gained 6.1% on a total return basis in Q1 2017.)

• The 75-year average growth rate of the US economy (i.e. Gross Domestic Product, or GDP) is +3.3% per year. However, the actual growth rate of the US economy has reached +3.3% or greater in only 2 of the last 16 calendar years.

By Stanley F. Ehrlich

March 31, 2017

The ongoing debate between actively managed and passively managed mutual funds has picked up steam recently. Actively managed funds are mutual funds with an investment team that seeks to buy the ‘best’ stocks for their portfolio. I have an image of the chief investment officer standing on a desk in the middle of that fund’s trading floor screaming: “Buy only winners; sell all the losers. Your bonuses depend on it!” (Maybe I need to watch the movie Wall Street to see if they actually do that.)