Emotionalism in the market is too damaging to your portfolio. It’s too easy to miss all the rewards of the market by making bad decisions trying to time the market. In February of 1992 I used this example to explain to readers just how badly they could lose out by jumping in and out of the market. It’s Too Easy to Miss It All Here’s another stunning analysis on why trading in and out is not for you. Analysis of stock market returns from 1946 through 1990 by Ibbotson Associates shows the following: One dollar invested in stocks in 1946 grew to $130.52 in 1990. If you take out just the best … [Read more...]
Archives for August 2018
Your Retirement Life: Do Something
Activity, you know, trading in and out of stocks or bonds isn’t good for your financial health. I’ve always liked Vanguard founder Jack Bogle’s quote on the matter: “Don’t just do something, stand there!” But, when it comes to your overall health doing something may be the trick to your happiness. Deborah Gage reports in The Wall Street Journal about the "cascade of positive effects" exercise can have on your body. She writes: Exercise has been shown to protect against diabetes, stroke and several other diseases and to improve our moods. But does it also make us more likely to engage in … [Read more...]
What’s Happening at Walmart?
With all the attention given to Amazon's business, some investors may have forgotten about the former biggest name in retail, Walmart. But, the big box store appears to be back. With 40% growth in its e-commerce business last quarter, Walmart is transforming its strategy and riding the online shopping wave. Aaron Back reports at The Wall Street Journal: Investors are starting to give Walmart credit for that growth but the stock price still underestimates the power of the retailer. Leveraging its 2016 acquisition of Jet.com, Walmart today offers free, nationwide two-day shipping on … [Read more...]
Will Canada Make a NAFTA Deal in Time?
Today is the deadline for Canada's negotiations to join the recently renegotiated version of NAFTA agreed to by the United States and Mexico. If the Canadians can't find a way to come to terms with the new deal, the U.S. and Mexico will enact their own deal bilaterally. Canada's Foreign Minister Chrystia Freeland is leading negotiations for the country, and is upbeat about the process. Paul Vieira and Jacob Schlesinger report in The Wall Street Journal: Canadian Foreign Minister Chrystia Freeland spoke briefly to reporters Thursday afternoon during a break on the third day of the talks in … [Read more...]
The Amazon ❤ Affair
There is a deep love for Amazon on Wall Street. An obsession of sorts. Of the 50 analysts who follow Amazon and provide recommendations, 48 rate the stock a buy and 2 call it a hold. Not a single soul on Wall Street is brave enough to tell you to steer clear of the shares. Morgan Stanley (MS) was the latest big bank to publicly profess its love for the internet retailer. Yesterday, MS upgraded its price target on Amazon by a massive 35% to a Street high of $2,500 per share. That upgrade comes on the heels of a July upgrade from MS that brought the price target to $1,850. Has Amazon’s … [Read more...]
The Clear Value of the Right-to-Work
You have clear evidence in the table below that allowing workers to choose whether or not to join a union really does matter. Take a look at the 10-year trend of workers in their peak earning years leaving New England—a region with forced unionism. Workers simply don't want to be forced to pay dues to fund efforts by the unions which they don't support. Whether that be political speech or contract negotiations that could put the corporations employing the union members in jeopardy. The National Right to Work Committee explains the correlation between forced unionism and population … [Read more...]
Why a Balanced Portfolio is a Winner
Back in October of 1998 American markets were recovering from the Long Term Capital Management crisis. The Fed had organized a bailout, and things were getting back to normal. It felt like a good time then to remind investors of the benefits of a balanced portfolio. I wrote then: Why a Balanced Portfolio is a Winner As I have written often, my own target and my goal for you is a long-term total return of 10% to 11% (after fees and taxes). This target may sound conservative, but trust me, it is aggressive and not easily achieved. To have any shot at achieving this target, expenses and taxes … [Read more...]
Consumer Confidence Soars in the Trump Economy
Americans are back to work, and with their new jobs they are feeling extremely confident as consumers. The Conference Board's survey of Consumer Confidence shows American consumers feeling better than they have since December of 2000. Martin Crutsinger reports at the AP: Americans’ consumer confidence rose in August to the highest level in nearly 18 years as their assessment of current conditions improved further and their expectations about the future rebounded. The Conference Board reported Tuesday that its consumer confidence index rose to 133.4 in August, up from a reading 127.9 … [Read more...]
Is Global Auto Demand About to Collapse?
New regulations, tariffs and an emerging market economic slowdown are having a major impact on global auto sales. William Boston, writes at The Wall Street Journal that automakers are entering their first sustained slowdown since the financial crisis. The question is, will it remain just a slowdown, or will auto sales collapse even further? Boston continues: China’s once-booming car market is cooling, in part because of escalating trade tensions with the U.S. American demand for cars and trucks—long a bright spot for the global auto industry—has topped out, following a seven-year growth … [Read more...]
American Employers Ready to Give Bigger Raises in 2019
Low unemployment and a tight job market have employers ready to compete to attract and keep the best talent in 2019. A report compiled by Willis Towers Watson explains that employers plan to give slightly larger raises to their employees in 2019. The report continues: The 2018 General Industry Salary Budget Survey, conducted by Willis Towers Watson Data Services, found U.S. employers project to give exempt, nonmanagement employees (i.e., professional) average pay increases of 3.1% in 2019, compared with 3.0 this year. Nonexempt hourly employees can also expect larger increases next year — … [Read more...]
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