The stock market has had bumpy start this year. Surprised? It mirrors January 2014. Lack of central bank stimulus, oil’s price decline and a few tepid reports are to blame this time.
Falling prices are a good thing for the cash-strapped American consumer, whose income on average has fallen to where it was in 1994, as we’ve reported. But behind every silver lining, there’s a black cloud. We are risking a plunge into the abyss known as deflation.
We hear all the time that spreading our portfolio’s holdings across many classes of assets is the best defense against losses when the bears hit Wall Street. There’s a good chance your diversification strategy may now not work as you intended, though.
When a financial genius invests in you, that’s usually a good sign. This seemed to be the case recently when George Soros invested $500 million with Bill Gross at the latter’s new firm. The Soros money went into a separate account that follows Gross’ new Janus Global Unconstrained fund.
What’s the best way to hold commercial real estate in a retirement portfolio? For many investors, the answer seems to be “not at all.” The reason is that real estate investments have burned people in the past and that stocks get more attention. That’s too bad.
Why would anyone want to buy at the top of the market? No one can tell if we are there yet, but certainly valuations are heady – and many stock prices are expensive.
Despite a good 2014, the stock market went through some tough days. At one point in October the Standard & Poor’s 500 was down about 8% from its all-time high reached just a month before, then a few weeks later rebounded to set records.
A written statement that outlines your goals and investment strategy is a must for all investors. When market risks arise for real, an investment policy statement helps you stay committed to your plan.
If someone wants to buy a company you own stock in, do you break out the champagne? Not necessarily. Given today’s burgeoning mergers and acquisitions, investors should approach M&A news with caution. Too many go wrong lately, punishing share prices and investors.
Maybe your family just wrapped up its holiday tradition of big gatherings where grandma headed the fireside sing-along or everyone got a year’s wisdom from your goofy brother-in-law. Maybe too you seethed silently at how well one relative is doing financially. As the holidays fade, we all must recognize our unrelenting desire to compare ourselves to loved ones – a path to both bad moods and potentially bad money moves.