We all know the stock market can be unpredictable, and after the sudden drop in 2007 and 2008, some may tend to overreact when prices become volatile.
We all want to know, what’s next for the financial markets?
Are prices headed down or up in the coming months?
The answer is nobody knows for sure.
So many variables go into market performance that we can’t control.
Here’s what can be controlled, positioning a portfolio based on your risk tolerance, time horizon, and financial goals so that no matter what happens with the markets, your portfolio is designed to protect wealth while being positioned to take advantage of potential growth opportunities.
Over time, investing for the long term has the greatest chance for success.
Call today, and let’s discuss your strategy.
Buy the rumor and sell high, because there’s no such thing as a free lunch.
Prediction is difficult, but never catch a falling knife. Cut your losses, no one ever went broke taking profits.
October is a peculiarly dangerous month to speculate in stock. The others are July, January, September, April, November, May, March, June, December, August and February.
So sell in May and go away.
Bull markets climb a wall of worry, and bear markets decline on a slippery slope of hope.
But remember, pigs get slaughtered, and everyone looks like a genius in a bull market.
Be fearful when others are greedy, and greedy when others are fearful, and just make sure you don’t fight the tape.
When the tide finally goes out, you’ll find out who’s been swimming without a bathing suit.
And make sure you know where your money is at the closing bell.
Give me a call, I can help.
The Richest Man In Babylon
This is a story about a chariot builder in ancient Babylon named Benazir.
Benazir works hard but year after year he remains poor while his friend, Arkad a scribe grows wealthy.
One day Benazir asks Arkat for the secret of his great wealth and our cat replies.
I found the road to wealth when I decided that apart of all, I earned was mine to keep and so will you.
But isn’t all that I earn mine to keep Arkat explains no.
For a man has to pay for his clothes food and other needs.
But if you save a portion of all, you earn and put the money to work for you, you can put yourself on the road to wealth.
So Benazir follows his friend’s advice saving a portion of his income and investing his savings and eventually becomes one of the richest men in Babylon.
The personal savings rate reached a low point of 2% in July 2005 as Americans came to terms with a great recession.
They began stocking away more savings until the rate reached 12% in December 2012 as the economy strengthened however the personal savings rate trended lower dropping to 5.8 percent the following February when times get tough.
Americans in recent years have tended to save more and spend less.
When times get better.
They spend more and save less.
In good times and bad consistently saving a percentage of your income is a sound financial practice followed the advice of the richest men in Babylon and pay yourself first call today.
And let’s talk about your savings rate
Successful investors can predict changes in the markets, right?
Let’s look at the three most significant drops in stock prices during the past 25 years.
On Monday, October 19, 1987, the Dow Jones Industrial Average fell 508 points, over 22%. Program trading, overvaluation, and market psychology may have played a role in the sudden decline.
On September 17, 2001, the first day of trading after the terrorist attack on the World Trade Center, the Dow dropped nearly 685 points, at the time, its biggest one-day point decline in history.
Beginning on October 6, 2008, the Dow fell 1,874 points in five days, its worst weekly decline ever. The causes of this decline are still subject to debate.
Though all three had different causes.
These drops had one factor in common, they caught most by surprise.
If we can’t predict market swings, is there a secret to success?
One idea is to follow smart investment strategies and periodically review your approach. Remember, when you chase the market, it is easy to fall behind.
Call today and schedule your review.
The History Of The Stock Market
From Boats to Brokers
In 1604, the Dutch East India Company held the world’s first initial public offering that allowed investors to buy shares in its ship’s voyages.
Over the years that followed, in the wake of this first IPO, the world’s first stock exchange formed in Amsterdam out of a need to trade those shares among investors.
Once the Erie Canal opened in the early 1800s, Wall Street was already well on its way to becoming the money capital of America. So it made sense for the New York Stock Exchange to solidify its operations on Wall Street.
So ubiquitous is Wall Street, it’s become a catch-all term for the financial markets of the US.
Wall Street has seen buildings rise and fall, horse-drawn carriages give way to horseless ones, and countless fashions come and go. That doesn’t mean the stock market hasn’t seen adversity.
The Standard & Poor’s 500 index has seen a correction of 10% or more 28 times since 1950, once every nine quarters on average.
The market has been up before. The market has been down before. And the market will be up and down again.
What’s important is that we build your portfolio in a way that reflects your goals, risk tolerance, and time horizon.