Stoicism amid market turmoil comes hard when a tsunami of dire investment headlines and plunging prices hits you, as we’ve seen in the last few days. Your financial future rides on Wall Street. What should you do?
Stocks, which neared record levels until their recent retreat, have been flat for much of this year. A host of international worries get trotted out as the reason, but the strong dollar and declining oil prices are at the root of the plateau and then the dip.
The Fed likes to keep people in the dark about when it will raise interest rates. Will this occur at their September meeting? October? December? To further the obfuscation, the board barely bothers to change the language in Fed monthly missives, which are supposed to discuss the factors that will compel it to finally act.
Slumping corporate revenues are a big factor in the current merger boom, lifting stock prices that otherwise would reflect a downbeat reality. This is artificial stimulation, though, and cannot last. Nothing beats escalating revenue as a profit elixir.
Cold, hard cash has a certain cache. A hoard of it allows people to do big things, whether wise or foolish. A lack of it causes pain, often widespread pain. Nevertheless, in this age of cyber-security breaches, cash has an advantage over other forms of payment.
Market cycles continuously revolve. In 2001, oil was doing well in the stock market, and tech was not. Today, the situation is reversed.
An uneasy stocks market, tumbling commodity prices, rising junk bond yields – are these signs of economic weakness? Despite what the doom-criers may believe, not at all. There are plenty of positive indicators to more than offset such dispiriting signals.
To manage risk, you must define what risks worry you and then discuss your concerns will all interested parties, especially with your financial advisor. Everyone should be on the same page.
A high turnover rate is not something you want in a stock fund. Let’s look at performance numbers to see why. When fund managers frequently trade a stock fund, it produces lower returns than if they trade less than 15% each year.
Corporate earnings seem to be doing better in the June-ending quarter than were projected several weeks ago, though that’s not saying much.