The coronavirus has caused more than 150 countries to shutdown their economy to fight against the virus. This has caused the stock markets around the world to drop the fastest more than any time seen in past history. What has also cause the steep drop in stock markets around the world is the drop in the price of a barrel of oil.
This newsletter is intended to help investors understand the stock market decline during a very devastating coronavirus that has cause thousands of deaths worldwide. The stock market dropped more than thirty-percent, it was the fastest drop in the stock market in history. Financial Advisors have had their hands full helping investors stay invested and helping their clients make the right investment decisions.
Market corrections are not easy. In a perfect world the market would go up and up and we would never have to worry about down turns. With global fear of the coronavirus, a 2020 election, fears of recession, and instability in the bond market, the market has begun a down turn similar to the financial crisis of 2008. The Dow Jones Industrial Average dropped 3500 points during the week of February 24 th -28 th . That’s a steep drop.
One of the major concerns for retirees or individuals approaching retirement is healthcare. As people live well into their 80’s and 90’s healthcare can have a drastic impact on retirement planning. Fidelity Investments has done a study on healthcare expenses during retirement. The study demonstrated that a couple aged 65, will need approximately $280,000 to cover healthcare expenses over the course of their retirement. That number can vary based on how healthy a person is and potentially where they live.
The Stock market in December of 2018 dropped enough to add it up to a stock market correction (worst stock market performance in month of December since 1931) due to investors sentiment fears of a slowdown in US Economy in 2019 even though companies fundamentals are still strong.
Have you ever heard someone say… “My financial adviser has me in some sort of index, but they reassured me that I can never lose money even if the market goes down!” You may think to yourself…that sounds like a scam and I’m glad that guy is not my adviser.
To all of our CFE Finances customers and to all investors. This month of October has been a tough month to be invested in the stock market. We at CFE Finances want to help all investors through this stock market downturn. This month of October has put fear into investors. The fear has caused the market sell-off. Why wouldn’t investors have fear after seeing their profits in stocks, mutual funds and ETF’s (exchange traded funds) go down 13 days out of the last 15 days.
In the world of investing, there are many types of investment solutions. Have you ever watched a PGA golf tournament on Sunday afternoon and noticed how many commercials there are for financial institutions…Fidelity, Schwab, even Pacific Life, which ends its commercial with their logo…a whale jumping out of the water. Each company advertises a financial concept ranging from overall financial planning to stock trading, or even the misunderstood annuity. With so many investment solutions it can be difficult to match a solution with a need.
This newsletter is intended to help investors understand the price to earnings ratio. A question was posed by a CFE Finances customer; who asked if a P/E ratio of 1 is the best P/E ratio. It is a great question so lets dive in.
This newsletter is intended to inform investors that some stocks have become expensive to purchase because the market has gone up by more than 10 percent (nearly 2000 points) since the presidential election.
It has been a while since our last newsletter and a lot has been happening within the stock markets. There has been an increase in the amount of volatility due to concerns about rising interest rates and the ongoing Greece financial crisis. The question is what should we as investors do as the markets move up and down? First of all we need to review our portfolio and determine how our stocks have performed over the last quarter. Ask ourselves is it time to add more shares to stocks we already own since their prices may have dropped or do we take some profits. As long as we keep informed with our companies’ stock price, news, sales and earnings growth we will be able to decide what to do. There are always going to be news related to the stock markets which are going to cause either new markets highs or a drop in stock prices.
Will the Dow Jones Industrial Average (DJI) reach 20,000 in 2015? An economics professor from Wharton School of Finance [Jeremy Siegel] was recently interviewed on CNBC.com and believes the Dow could get to 20,000 should the US economy grow by three or four percent this year. Siegel also believes the market is under-valued and markets usually go beyond fair market value before retracting. For the Dow to reach 20,000, a few things may need to happen. Most notably: no inflation. Other factors include: low interest rates, low unemployment, low oil and gas prices and finally no supply constraints.
Investors are being encouraged to save their money for retirement through a company 401k plan or in an IRA account. This is an excellent and necessary investment strategy for retirement but there aren’t enough people investing in after tax stock brokerage accounts. Why is it important and what is the benefit to investing in a stock brokerage account?