Tech stocks have weighed so heavily on the market in 2022, there is a strange disconnect between the Dow Jones industrial average, the S&P 500, average, and the NASDAQ index. – Dow Jones -5% YTD – S&P 500 -15% YTD – NASDAQ -27% I am guessing we have not seen a split like this since the ‘dot-com boom’ busted in the year 2000. Statistics show … Continue reading Time For A Santa Rally?
My son sent me this hopeful chart today. It shows how the stock market has fared following a 25% decline in the S&P 500 over the last 70 years. Of course, as they say, past performance is no predictor of future performance. Still, it is nice to see that big market drops have historically turned back to growth rather quickly. I had hoped that our … Continue reading When Will It Turn?
We’ve had a new round of bad economic news, but I can’t get too excited about it, even though it seems like a pretty severe storm. I think I’ve fallen victim to “bad news fatigue” after two years of the pandemic, rising inflation & interest rates, and declining investments. Just in the last couple weeks … ⁃ The stock market erased all the gains since … Continue reading Weathering The Storm
If I had only paid more attention to my own behavior, I would probably be a much better investor. I noticed on the Amazon website that it lists your annual orders under the ‘purchase history’ feature. My own use of Amazon seems to mirror their stock performance. As I jumped from just 3-5 orders a year to over 100, their stock shot from $12 a … Continue reading Amazon Explosion
It’s hard to find good financial news lately, so today I thought I would take a step back and look at a longer period of time. It’s easy to get get caught up in the day-to-day headlines, but if you are going to reach financial independence and retire early (FIRE), you have to be focused on the big picture. The chart below shows the S&P … Continue reading Taking The Long View
They say, “a stitch in time, saves nine,” but sometimes waiting to do something pays off even bigger. In investing, it’s a bit of luck. My broker had been calling over the last 8 weeks to ask what we wanted to do with a big chunk of cash that came our way through a real estate sale. I’m lucky I didn’t decide what to do … Continue reading Timing Your Stitches In The Stock Market
I’ve written before about cryptocurrencies when they were growing, so I thought it only right that I also comment on them when they are falling. Bitcoin is now trading at less than half of what it was at last November. It’s gone from a peak of $69K/coin down to just $30K. That’s a sad drop for a digital currency that was supposed to help protect … Continue reading Are Cryptos Blowing Away?
The bears are running through the financial media, with the 5% drop in the S&P 500 over the last week. I saw a headline on Friday that one of JP Morgan’s top analysts was predicting a 20% stock market sell-off. Another Wall Street ‘expert’ – John Hussman – believes that we could see a 70% market crash, led by sky-high tech stocks. The issues are … Continue reading Bears Starting To Run?
I complained a lot about the economy in 2021. I didn’t like the trillions in debt-driven government spending and the ensuing inflation. Still, I acknowledged that the markets continued to rise – as the ‘Trump Bump’ became the ‘Biden Bump’. Yesterday, I tallied up how we finished the year with our portfolio. Our retirement savings were up an impressive +15%. Our gains were led by … Continue reading New Year’s Assessment
Prices are going up. Consumer price inflation ballooned to 6.8% in November as massive increases in government debt and supply-chain issues over the last year were reflected. The Fed & Biden believe they can get back to a 2% annual average target, but clearly that’s going to take some doing. Retirement plans are especially susceptible to rising prices as fixed investments, pensions, bonds, and social … Continue reading What’s The Impact Of Inflation On Your Retirement?