Source: Direxion Funds

September 30, 2017

• The highest closing value during the year for the S&P 500 has occurred in the final 4 months of the year (i.e. September – December) in 11 of the last 14 calendar years.

• The average interest rate paid by the government on its interest-bearing debt was 2.279% as of 7/31/17. The average interest paid on interest-bearing debt was 5.041% as of 7/31/07 (10 years earlier) or 2.8 percentage points higher. Every 1 percentage point increase in the cost of debt on our nation’s $14.4 trillion of publicly held debt is equal to $144 billion of annual interest expense.

• 42 million Americans owe $1.34 trillion in student loan debt. 60% of borrowers fully repay their student debt within 8 years of beginning repayment.

August 15, 2017

As you might imagine, John and I spend a lot of time reading both professional journals as well as more mainstream publications, such as the Wall Street Journal and Barron’s. Thus, we’re familiar with the current debate about robo-advisors and which investors might benefit from using them.  

August 15, 2017

September is right around the corner, which means it's back-to-school time.  No doubt that any parent with a child under the age of 18 is scrambling around, helping their kids pick up the necessary materials they need for a successful year.  Just imagine the slate of courses primed for your child or grandchild: social studies, math, biology, art, personal finance...wait, what?  No personal finance class, you say?  

August 15, 2017

A client forwarded an e-mail that had all the trademarks of a communication from Charles Schwab. Fortunately, our client was savvy enough to realize it was not sent by Schwab, but by someone seeking his log-in credentials. He forwarded it to me, and I sent it on to Schwab’s security team.

Source: Direxion Funds

August 15, 2017

By The Numbers...

• The findings of the Federal Reserve’s “stress test” completed on 34 large US banks were released on 6/22/17. The tests, created in 2009, showed the banks all passed for the third consecutive year. The banks were put through financial simulations to determine if they could survive a two-year economic slump that included a 10% national unemployment rate, 50% decline in stock values, 25% drop in home prices and 35% decline in commercial real estate prices.

• The yield on the 10-year Treasury note closed at 1.36% on 7/8/16, its lowest closing yield ever. 10-year notes have traded in the US since 1790. The current rate on the 10-year Treasury note is approximately 2.20%.

June 30, 2017

Whenever someone tells me that aging is hard, I’ve taken to replying “The alternative is less attractive.” I guess I get away with saying that because, well, I’m apparently also aging. 

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.