retirement

The first half of 2024 is in the books – what vibe is ahead?

jim Financial advisor, Investing, Investment Management, investment strategy, Market Brief, retirement, Retirement Income Planning, Retirement Planning, wealth management , , , , , , ,

Happy belated 4th of July! Having recently come together to celebrate the spirit and freedom our great nation offers. I hope you took some well-deserved time to relax, recharge, and appreciate time with loved ones. Independence Day is a refreshing, early-summer break, lighting up not just the evening sky. As well as, reigniting our sense of balance, relaxation, and well-being. The hot summer vibe is here.

Much like a holiday provides solace from your daily grind, a financial sanctuary offers peace in our economic landscape. It’s a place where you can rest easy, knowing your finances are secure, allowing you the freedom to rejuvenate without constant worry.

1. Safety Nets: As your home shields you from the elements, an emergency fund protects against unforeseen financial storms.

2. Growth Spaces: Just as gardens bloom with care, diversified investments foster growth and long-term security.

3. Withdrawal Zones: Contributing to a Roth IRA now can allow you some well-timed tax advantages later when relaxation requires spontaneity and indulgence.

Let the summertime vibe propel you into a continual journey towards stronger, smarter financial habits. As read on social media and media outlet headlines, it seems every week there’s a new acronym to label the US economy. The “vibe” of the general population, this week it’s FOGO: The Fear of Getting Old.

But the movement gained traction years ago with FOMO, created to describe millenials’ (or anyone’s) fear of missing out. Then the pendulum quickly swung in the other direction as JOMO, the Joy of Missing Out, took over during the pandemic. You may also have heard of DINKs (double income, no kids), FIRE (financial independence, retire early), and HENRY (high earner, not rich yet). How about HIFI (high income, financially insecure)? Or ALICE (asset limited, income constrained, employed)?

Acronyms distract from the core issue: How to cope with the natural fears that arise when taking risks and living life to the fullest. The good news is you don’t have to fear aging or missing out. Together, we can assess the level of risk you’re comfortable with when pursuing your financial goals, leaving you with a sense of faith and freedom. Here’s to creating your sanctuary of financial well-being!

Last Week

As for last week, the Dow Jones Industrial Average was up 1.6%, the S&P 500 gained 0.9%, and the Nasdaq was higher by 0.3%. Year to date, the Dow is higher by 6%, the S&P is up 18%, and the Nasdaq is higher by 23%. Also, last week included good inflation news. CPI was 3.0% for June, down 0.3% from May. Core CPI dropped 0.1% from the prior month. Mortgage rates fell to 6.89% for the average 30-year fixed-rate mortgage. Gas prices rose a penny to $3.49 per gallon for the average price of regular gas. The Atlanta Fed indicators are forecasting growth of 2.0% for the 2Q.

The Week Ahead – Earnings Vibe

Wall Street and the rest of the nation will continue to monitor developments regarding the attempted assignation of former President Trump. Wall Street will continue to ponder whether an interest rate cut is likely in September, as a case for a cut seems to be building. Chairman Powell speaks on today in Washington, D.C. and his remarks will be telecast live. Though he spoke on Capitol Hill last week, but those comments were before key data showed consumer inflation slowing. Tomorrow, Retail Sales data is released. Then housing data and industrial production later in the week.

Earnings reports kick into high gear this week, starting with financials. Today, Goldman Sachs and BlackRock report. Tuesday it’s Bank of America, Morgan Stanley, and PNC Financial. Only 5% of S&P 500 companies have reported so far. General expectations are for 8%-12% earnings growth for 2Q. This follows 8% growth in 1Q and 10% growth in 4Q23.

The next Fed rate decision comes on July 31, with odds at 6% for a cut. Not very likely at the moment. By mid-September, there is a big jump in the odds to 96% for a rate cut. Accordingly, this spike follows the good news on inflation last week and the jobs report the week prior. For the November meeting, the odds are 99%, according to the CME FedWatch Tool.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

Erie CO Financial Advisor; investments, wealth management, retirement income planning; Boulder, Broomfield, Louisville, Niwot, Windsor, Berthoud, CO

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers. This is not a solicitation or offer of service in states we are not licensed in.

New Year, New Rates? Market Brief February 28 2024

jim Financial advisor, Investing, Investment Management, Market Brief, retirement, Retirement Income Planning, Retirement Planning, wealth management , , , , , , ,

Given the choice between more time or more money, which would you pick? This question is not just a thought experiment but a reflection of the trade-offs we make daily in our pursuit of happiness and success. How you answer can significantly impact your saving, spending, and goal setting.

Research shows that our sense of happiness and fulfillment is directly linked to how we spend our time and money. When we prioritize time over money, we may find more joy and satisfaction in our lives but may have less financial security. On the other hand, prioritizing money may leave us feeling unfulfilled and stressed.

new year new rates

Since 2024 is a leap year, you’ll have an additional day. Why not spend some time on that day considering one practical action to optimize your resources?

Onward to rates… Interest rates affect us all. Whether you’re seeking the highest rate for your savings or the lowest for your mortgage or credit cards, knowing how to manage this aspect of your finances is increasingly important in an ever-changing environment.

Though most forecasters expect the Fed to cut a benchmark short-term interest rate soon, rumors of “higher for longer” rates persist. And although we can’t predict the future, we can prepare for it. Are you ready for when this change happens?

Understanding key financial concepts is important to maintaining not just your financial health but also your financial confidence and happiness. And interest rates are more than just numbers in the news; they’re the heartbeat of your financial wellness. More on the current interest rate environment in the Market Brief below.

Feel free to share if you know someone who could use guidance. As always, I’m available for any questions or ideas you have regarding financial strategy.

Market Brief – New Year New Rates

Another week is behind us in 2024, while stocks have seen more recovery highs and the major indices have seen more all-time highs. The week ending Feb 23 saw the S&P 500 rise 1.7%, the Nasdaq added 1.4%, and the Russell 2000 lost 0.9%. For the S&P 500 and Nasdaq indices, last week was the 15th of 17 on the upside. During the 17 weeks, the S&P has gained 23.6%, and Nasdaq is up over 26%. Those are great returns for a full year!

In other news, Amazon.com replaced Walgreens Boots Alliance in the 30-stock Dow. New home sales in January 2024 rose 1.5% from December to a seasonally adjusted annual rate of 661,000 units. The median sales price was $420,700 and the average sales price was $534,300.

As for a recession, it is likely that the U.S. economy will avoid one into 2025. The Federal Reserve will likely start to lower interest rates later this year, and earnings growth is poised to accelerate over the next few quarters. There are fundamental risks to be sure, such as geopolitical developments (Russia, Mideast, China), high interest rates (the Fed hasn’t cut yet), the chance of recession (always a possibility), not to mention the upcoming 2024 U.S. presidential election.

The Fed’s next rate decisions come at the end of March and May. For March, odds of a rate cut are only about 4%, according to the CME Fed Watch. For May, odds go up to 26%. That’s also much lower than was the case over in last few weeks. Year-to-date the S&P is up 6.8%, Nasdaq up 7.9%, and Dow up 2.9% through intraday today.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers. This is not a solicitation or offer of service in states we are not licensed in.

Financial Advisor Erie CO focus on investment and wealth management, retirement planning; Boulder, Louisville, Niwot, Lafayette, Windsor, Berthoud, CO

Markets reach All-time Highs

jim Financial advisor, Investing, Investment Management, Market Brief, retirement, Retirement Income Planning, Retirement Planning, wealth management , , , , , , ,

all-time highs

Happy New Year, happy January, and welcome back to All-time highs! As we embark on this fresh chapter, consider this, it has been two years since we last reached this threshold. A lot has happened since then. In some areas of life, value is unlocked by starting, while in others, it’s found in the finish. What’s your focus for 2024 and beyond? Whether you need to kickstart new financial habits or follow through on existing plans, I’m here to help you navigate the journey.

Financial success often hinges on effective beginnings and successful completions. Starting on the right foot positions us for a year of financial achievements. This year let’s work together to initiate valuable habits like automatic savings, strategic budgeting, and a tailored financial strategy aligned with your long-term goals. If there’s anything left unfinished from 2023 – unsure what changes to make, coverage to put in place, accounts to contribute to, when to save, etc. – let’s tackle it head-on for a more financially fulfilling year ahead. Even minor adjustments to your financial strategy today can make a big difference over time.

The second Friday of every January is infamously known as “Quitter’s Day.” It’s the day on the calendar by which most people have already abandoned their freshly made resolutions. Hopefully you powered through and are still on track with your 2024 goals. Truthfully, it’s not hard to believe. As we’ve all experienced at one time or another, it’s easy to get discouraged with our goals, especially after the initial enthusiasm starts to fade. The secret to staying power is breaking down your long-term goals into smaller, more manageable milestones. What can you do today that will improve your situation by December?

As always, if you have questions any day of the year, reach out to me. Together, we can create an action plan tailored specifically to you. As the saying goes, winners are not people who never fail, they are people who never quit. Here’s to unlocking value and achieving financial success in 2024!

Market Brief – All-time Highs

This is a huge earnings week, with many big-name companies reporting. The week also features important inflation data, and talk about the Fed’s next rate move will heat up ahead of the rate meeting next week. The FOMC decision on January 31 is widely expected to result in unchanged interest rates, while future rate-cut expectations have become less optimistic. Last week, the Dow Jones Industrial Average was higher by 1%, the S&P 500 up 1.2%, and the Nasdaq up 1.6%.

Mortgage rates dropped slightly last week, to 6.6% for the average 30-year fixed-rate mortgage. Gas prices fell a penny to $3.06 per gallon for the average price of regular gas. The Atlanta Fed GDP indicator is forecasting for 4Q and calls for expansion of 2.4%.

Stocks headed higher today with the S&P 500 on track to hit another all-time high. The stock market blasted off late last week, propelling the S&P 500 to an all-time high. It has been a long recovery (over two years) for the index, as its last All-time high was on January 3, 2022. The Nasdaq still has work to do to reach their all-time high from late 2021 and early 2022. Year-to-date, the DJIA is now up 1%, the S&P is up 1%, and the Nasdaq is up 1.6%.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers. This is not a solicitation or offer of service in states we are not licensed in.

Erie CO Financial Advisor; investments, wealth management, retirement income planning; Boulder, Broomfield, Louisville, Niwot, Windsor, Berthoud CO

#investing #marketbrief #stockmarket #retirement #wealthmanagement #financialadvisor #retirementplanning #investmentmanagement #retirementincomepla

Corporate Earnings On Deck – Market Brief April 18, 2022

jim Financial advisor, Investing, Investment Management, Market Brief, retirement, Retirement Income Planning, Retirement Planning, wealth management , , , , ,
corporate earnings

Investors seek value as rising rates hurt growth stocks. U.S. equity performance was mixed in a shortened week as inflation and interest rates weighed on sentiment. Corporate earnings season accelerates, with Q1 reports due from companies in several key industry groups, including banks, trucking, airlines, metals, and technology. The Dow down 0.78%, S&P down 2.11%, and Nasdaq down 2.62%.

Last Week

The S&P 500 declined for a second straight week as the market offered little optimism to investors with climbing inflation and mixed Q2 earnings reports. Materials were the best performing sector in the S&P 500 during the week while Information Technology lagged. The yield on the ten-year treasury bill climbed to 2.83%, over 100 basis points higher than a year ago. This dampened growth stocks during the week. Oil spiked over $10/barrel over three days as peace talks between Russia and Ukraine stalled. Energy stocks beat the market last week. J.P. Morgan kicked off the 2Q22 corporate earnings season with quarterly profit that was 42% lower than a year ago.

In economic news last week, key data included Retail Sales, the Consumer Price Index (CPI) and University of Michigan Consumer Sentiment. Retail Sales rose 0.5% in March, slightly below the consensus forecast and down from the previous month. Sales at gas stations accounted for much of the increase, with an 8.9% rise from the prior month. Not surprising given the jump in oil prices. The Consumer Price Index rose 8.5%, its highest rate since 1981, up from 7.9% in February. The sharp increase reflected an 11% jump in energy prices. Some economists believe that recent high inflation may be the peak. However, the March data is far above the Fed’s long-term 2% target and moving in the wrong direction. University of Michigan Consumer Sentiment rose to a better-than-expected 65.7 in April, up from 59.4 in February.

Week Ahead – Corporate Earnings

The stock market opens today with corporate earnings season ramping up. Banks and financial companies will lead off, including Bank of America and American Express, as well as many regional banks. Other companies reporting this week include IBM, Halliburton, Lockheed Martin, Johnson & Johnson, Tesla, Alcoa, Procter & Gamble, AT&T, Verizon, Netflix, American Airlines, and United Airlines. The wide range of reporting companies will help give economists a sense of how different sectors are weathering inflation, rising interest rates, and the impact of the war in Ukraine and economic sanctions on Russia.

Key economic data due this week include Housing Starts, Existing Home Sales, and Leading Economic Indicators (LEI). For Housing Starts, economists expect March to be down from February. For Existing Home Sales, the consensus also calls for March to be down from a month earlier. While the housing market has been red-hot for many years, it has started to cool in recent months. Housing could face further pressure from aggressive Fed rate hikes. Economists see LEI coming in at 0.3% for March, in line with the February rate.

Year-to-date index performance; Dow down 5.2%, S&P down 7.8%, and Nasdaq down 14.7% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

Erie CO Financial Advisor; investments, wealth management, retirement income planning; Boulder, Broomfield, Louisville, Niwot, Windsor, Berthoud CO

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Market Volatility: Keep Calm and Carry On

jim Financial advisor, Investing, retirement, Retirement Planning, wealth management, wealth planning strategies , , , , ,
keep calm

I don’t know about you, but this isn’t exactly how I thought we’d be approaching autumn. The Delta variant is causing some of us to pivot and alter plans once again. Amid reports of extreme weather as seasons change along with up and down markets, I’ve decided that I’m heading for much higher ground. Are you with me?

The fact is, storms of life come – often quickly and unexpectedly. And while we can’t stop the storms, we can do our best to prepare for and weather them until they pass. Destruction and loss will cause added stress, and that’s not the best environment in which to make decisions. The optimum time to prepare is now, before the next storm hits, focusing on what we can control and the best route upward. 

Markets naturally go up and down. Over the long run we all know they go up a lot more than they go down. But in these times of market volatility it can be stressful on all of us. The key to managing stress from fluctuations in the market is to ignore noise.

We create portfolio’s based on the clients long term goals. This way clients don’t need to worry about occasional market dips which newspapers and other media tend to sensationalize. Investing is about long term returns not short term ratings.

In fact stocks are actually on sale, so now could be a good time to go shopping. Although significant market dips can be attention-grabbing, they can also present a buying opportunity. If you have any questions about your strategy in light of recent events, let’s talk.

Please let me know if you want to discuss anything at all, from this weeks’ market news to specifics about the portfolio we have implemented.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.