China's stock market may have another 50% leg down according to major traders and chartists. China now buys about an eighth of the world’s oil, a quarter of its gold, almost a third of its cotton and up to half of all the major base metals. The fear that China’s appetite for commodities, from copper to coal, is falling after a decade of breakneck growth has sent prices tumbling and help sent stock markets into turmoil in trying to adjust. Get some facts on what's really happening in China and how it is impacting the world, from oil to stocks to gold. In the Q & A segment, Steve reviews 3 important questions investors have about annuities, such as "Does the insurance company keep my money when I die?" (hint: not if you choose the right annuity)
Sam Stovall of S & P Capital IQ points out while many investors may think the worst is over, September September is the only month in history in which the S&P 500 fell more frequently than it rose. What's more, in the 11 times that the S&P 500 fell by more than 5 percent in August, it declined in 80 percent of the subsequent Septembers, and fell an average of nearly 4 percent. And why might this month be true to form and true to history? End-of-quarter mutual fund window dressing, a projected 4 percent decline in third quarter S&P 500 operating earnings per share, and the renewed possibility that the Federal Reserve may begin its rate tightening cycle at its upcoming mid-September Federal Open Market Committee meeting. Oh yeah, and China. Steve and Sinclair review Mr. Stovall's insights. In the Q & A, Steve breaks down how to achieve an extra $2,000 a month for life, using 75% less capital, while maintaining access to your money and not disinheriting your heirs. (Invest the other 25% for capital gain, or create an increase in an estate by up to 30% to 50%)
Here come the machines...the speed at which robots are gaining in sophistication is moving at the pace of Moore's Law. Fortune Magazine's Geoff Colvin's new book, Humans Are Underrated reveals that robots are capable of recognizing emotion and giving it back. Strange deflationary things are happening in the economy. The St. Louis Fed reports that men of prime working age—the group that historically has been the most thoroughly employed—are suddenly losing jobs faster than any other category. Gartner, the high tech consulting firm and Bill Gates founder of Microsoft both are saying that more than 45% of today's jobs will be non-existent in ten short years--by 2025. Steve and Sinclair review the book and the chilling facts. In the Q & A segment, CFP® Murray Titterington with IQ Wealth joins the A-Team to discuss the viability of Social Security.
A stock buyback, also known as a "share repurchase", is the act of a company buying back its own shares from the marketplace. On the positive side, you can think of a buyback as a company investing in itself, or using its cash to buy its own shares. But as Barron's columnist Ben Levisohn says “Like the Wizard of Oz, who was revealed as nothing more than a man behind a curtain working some cool special effects, stock buybacks might not be the great and powerful market force they were thought to be.”
Suddenly, buybacks appear to be suffering from diminishing returns. Why aren’t buybacks working like they were? A big part of the problem might be their popularity. Prior to share buyback mania-statistics show that companies that have a track record of repurchasing their own shares have historically outperformed the market. Steve and Sinclair dig into share buybacks and their effects on the market. In the Q & A, Steve reviews what goes into a comprehensive financial plan, and what separates a good plan from a mediocre one.
The week after the flash crash, global economic fundamentals remain the same--China could head fifteen percent lower, the Fed is still in hold mode, emerging markets are submerging, and big economies are growing slower. Markets are volatile as we head into the fall, which means there is big trouble when everyone wants to sell at once. During the heavy decline last Monday, TD Ameritrade was so overwhelmed it was taking twenty minutes to log in. Schwab got shut down for nearly an hour. Vanguard had to put extra staff on to handle calls. The message? If you are retired or nearing retirement, most of your assets should be unaffected by daily market moves. Your serious money should be kept out of harms way for now. Nick Grovich gives interesting insights into the Gold market and its reactions. He explains that platinum's supply is so tight, it has to be specially ordered. In segment 4, Steve talks about how liquidity works with market makers on both stocks and bonds.
The Wall Street Journal reports that luxury apartments are currently the dominant trend in the rental markets with renters paying upwards of $3,000 to $4,000 a month for a two bedroom in larger metro areas and $2,000 a month in markets like Phoenix and St. Louis. Renters are suddenly spending more of their total budget on housing than they have in years, squeezing out their budget for stocks and other purchases. Will it affect the markets and the economy. Steve and Sinclair review. This is another squeeze painting the deflationary picture we live in, and why this economy is stuck in "flat." As an investor you need to know your situation and foresee what's coming next. In the Q & A segment, real estate attorney Stephanie Wilson joins the A team to discuss the risks and issues with mold--both from the victim's and investors perspective.
China now buys about an eighth of the world’s oil, a quarter of its gold, almost a third of its cotton and up to half of all the major base metals. The fear that China’s appetite for commodities, from copper to coal, is falling after a decade of breakneck growth has sent prices tumbling and help sent stock markets into turmoil in trying to adjust. Get some facts on what's really happening in China and how it is impacting the world, from oil to stocks to gold. In the Q & A segment, Steve reviews 3 important questions investors have about annuities.
Over $2 trillion in value is sitting in farmland in the U.S., but is farmland a good investment? Goldman Sachs, TIAA CREF and other big names suddenly think so. Many university pension plans are placing dollars into midwest farmland that has seen a decline in pricing over the past three years due to bumper crops and other factors. With prices down, investors are stepping in. Farms are now in the price range that make sense, according to sources quoted in the Wall Street Journal. Steve and Sinclair review the details, and what to be careful about before or if you think about investing. In the Q & A session, CFP® Murray Titterington joins Steve and Sinclair to discuss several little known facts about the file and suspend claiming strategy
…If you weren’t paying attention to the stock market before Monday, you are now. ..”A 1,000-point drop in the Dow Jones Industrial Average will do that,” says best selling author Jason Zweig writing for the Wall Street Journal. The market recovered somewhat on Tuesday, but when we see blood red arrows pointing down for several days in a row, it is very easy to suspect the worst. Being sensitive to bad—or potentially bad—outcomes can be helpful, but reacting in herky jerky fashion can be costly. Big sounding numbers scare people. Experiments have shown that people believe cancer is riskier when they are told that it kills “1,286 out of 10,000 people” than when they hear that it kills “24.14 out of 100 people.” Hearing “1,286” immediately brings a large number of victims to mind, while “24.14” is simply a much smaller number. Actually, 24.14 % would affect far more people. Steve and Sinclair review Mr. Zweigs article and then review the facts about bear markets and corrections. In the Q & A segment, high powered attorney Christopher McNichol joins the A-Team to discuss options on real estate, and how they differ from first rights of refusal, and first rights to offer. Steve wraps up in segment 4 with historical market perspectives.
With the stock market getting blasted, many investors are wondering what's coming next. Many are looking at gold as not only a safe haven, but as a potential upside position. The price of gold is sitting near its cost of getting it out of the ground, and half of the world tends to look to gold as a safe haven as currencies gyrate. Some investors are buying gold. Precious Metals expert Nick Grovich reviews important fundamentals in segments 2 and 3. Steve and Sinclair wrap up the numbers in segment 4.