Legacy Investing & Wealth Management Market Mondays – 12/24/18

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

I’m going to get right to it with a special edition of “In Market News” as I have a lot to do this evening for the little ones. It’s the holiday season, the night before Christmas and everyone is supposed to be full of cheer…not so for the stock market. Today was the worst Christmas Eve sell-off ever recorded, the S&P 500 just went into a bear market and the NASDAQ entered one the other day. A bear market is when the index plummets at least 20% from its most recent high. There’s a lot going on so I’ll try to summarize it then follow up with technical levels to look out for.

First and foremost the Federal Reserve is pulling back significantly on the program that pumped the market up and helped get us out of the Great Recession. In addition, they are raising interest rates and did so again last week. The market was hoping they would not raise and scale back interest rate hikes for 2019. Instead, they said they are raising twice and did not do a good job of reassuring investors that it will be data dependent and monitor the financial markets.

Next, we have a continued circus in the current administration. The President is seen causing another government shutdown, the constant revolving door of high-level officials and appointees, the trade war between the US and China, the Treasury Secretary making comments about liquidity in the banks (which many thought he should have never mentioned) spooking the markets, as well as many other issues.

Finally, we have been in a late cycle bull market with a slowing world (and US) economy and many fearing that a recession is on the horizon. The stock market is forward looking meaning that it tries to anticipate the future. If it feels a recession is a year or so away it will start selling off early sending us into a bear market. With a bear market stocks go down most days but will sometimes have sharp, violent rallies.

For you short-term traders out there here is a look at the technicals. Today the S&P 500 closed at 2,351, down 20% from the all-time high of 2,940 hit in September. The 2,300 level is another area of support but if we can’t hold it than we could have a long way further down to go. If we hold and bounce then I would sell any short-term positions around 2,500 and look for a retest of whatever level we bottom out at. We broke out to new highs back in April, 2013 and some think we could revisit somewhere between 1,575 and the 1,900 area in the next 1-2 years. Approximately 1,576 was the level we broke out from which was the prior high of the last bull market ending in October, 2007.

Once the market breaks down 20% or more it takes quite a bit of time to recover. We’ve had instances where we sold off that much or more and were not in or heading into a recession. If we made it all the way down to those levels mentioned above that would be more than a 45% decline, in line with prior bear markets combined with recessions. Although the economy is slowing, most US companies are doing well, we’re almost fully employed, consumers are spending, and the widely followed 2-year/10-year yield curve hasn’t inverted yet.

If you have a 401k the best thing to do is to stay the course and keep contributing. The stock market will recover and eventually make new highs but it will take some time. Depending on your age you should always be mixed in stocks and bonds. The general rule is to take 100, subtract your age and that is the percentage you should have in stocks. The left over should be invested in bonds. History has repeatedly shown us that it does not pay to trade in and out of 401k’s.

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Step out of your comfort level and get your finances in shape this year! Let’s connect and build generational wealth together. Have a wonderful Christmas and I wish you a Happy New Year!

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Legacy Investing & Wealth Management Market Mondays – 6/25/18

Hello, hello everyone! Thank you for tuning in and I welcome you to my Market Mondays relaunch. This is the written version of a video I did previously. Market Mondays is a standard blog where I talk about different topics related to finance, the stock market and issues that get in the way of us becoming wealthy and living a lifestyle that I believe we all deserve. I started this blog because I am a Registered Investment Adviser in the state of Maryland and also the owner of Legacy Investing & Wealth Management. God gave me a vision to start the company to help empower the newer investor, coach those who have an interest in becoming debt free and wealthy, show you how to make a living and retire investing in the US Stock Market or manage a portfolio for you. The new format of Market Mondays will continue to feature an easy to understand topic related to the stock market or general finance as well as give you the most recent stock market analysis. For more information on my company or to see past blogs, please go to www.LegacyInvesting.net.

Now before I start I gotta give a lil disclaimer: I’m not giving investment advice here and you can lose money investing, especially if you don’t know what you doing. Also, I’ve talked about past personal annual returns but that’s never a predictor of future returns. Alright it’s almost been 3 years since I’ve started Market Mondays and I’ve covered a lot of topics but today I want to talk about something I haven’t really covered at length before and it’s simply titled CASH! I’m holding up a wadfull of money but I’m not trying to floss or perpetrate like I got it like that. What I’m showing you right now is how we’re now saving between $1000 and $1500 a month. You’re probably wondering how I know that huh? Well I track all of our expenses on a spreadsheet and I’ve been doing it now for over 4 ½ years.  For most of that time we’ve always paid for everything with credit cards. Using credit cards is easy, it’s convenient, just about everyone accepts them so it just makes life simpler right? Amazon and all these online companies only accept credit cards so that’s the way business nowadays is done and the only way you can do it online. Debit cards are another option but I don’t recommend using those for online purchases. That’s another topic we might talk about one day. Do you know that for the first time ever credit card debt in the US has gone over 1 trillion dollars! That’s more than it was right before the Great Recession and it’s alarming because people are going deeper and deeper into debt with credit cards. People charge stuff on their cards until their maxed out. Then you have the daunting task of paying them back but doing that at the monthly minimum would take decades to pay off. Too many people are falling into this trap and will not be able to get themselves out.  In tracking my expenses I saw first-hand that we spend a lotta money using credit cards. When you don’t actually see those Benjamins constantly leaving your pocket, psychologically you feel like you’re not spending as much.  In February, we challenged ourselves as a family to go old school and go back to using cash for everything we could. I’ve read that using cash forces you to use less money but I wanted to literally put it to the test. That cash that I showed you earlier is our allowance for groceries, eating out, and most other necessities. We plan out a certain amount to use over a two-week period and once that’s gone it’s gone! Doing this makes you really evaluate any purchase you make…is it important, do you need it and are there any cheaper options. Dollar Tree has become one of my favorites lol.

So who is up for the CASH CHALLENGE?? I’m going to keep ours going through the end of the year and report back how much we save on a monthly basis compared to last year.

The second segment is called In Market News. This is a report on how the stock market is doing and what may be causing it to do what it does, which is go up, down or sideways. Early this year we had a stock market correction, which means from it’s peak in January to it’s trough in February it lost over 10% of its value. Anytime that’s happened even in a bear market its always a good time to buy stocks and ETF’s on sale. Since we’ve recovered we haven’t hit any new highs this year but instead we’re in a upward sloping channel. The stock market has been drifting lower over the last 2 weeks but today we dropped pretty hard.  We’re at the lower end of this channel which to me means were either going to bounce of the 2700ish area of the S&P 500 which is a level of support or keep going lower for a while. The 2700 area was a big area of support is as it the bottom of the upward sloping channel and also where the prices fluctuated above and below since April. We have been in an expansion since March of 2009 and this has become one of the longest expansion periods in history. No one knows when it will end and recession sets in but we do know an end is coming. The end usually happens with what’s called a blow-off top where euphoria sets in and everyone is overly optimistic. This coincides with a huge market rally then then bear market begins. Those usually last anywhere from about 6 months to several years. I don’t think we’re there yet since corporate earnings and growth are still very strong right now. However, there are a lot of things that are watched and what is being talked about a lot now is the yield curve of the interest rates. Simply means the difference between the 10-year Treasury Bond Note and the 2-yr Treasury Bond Note. It has been flattening, meaning the 10-year Note are not rising as fast as the short-term Note and once it inverts that is a big sign and the stock market will react by going lower, usually sending us into a recession. The Federal Reserve which controls Monetary policy and tries to keep our economy running smoothly is increasing the amount of short-term interest rate hikes to keep inflation from getting out of control and overheating our economy. Because of that, they help cause the inverted yield curve which will still stocks into a bear market during late cycle expansions.

Hopefully that made sense so let me know your thoughts. If you haven’t already please check out the website at www.LegacyInvesting.net and contact me today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about my services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Step out of your comfort, take that step! We have 6 more months left this year to get on track. Let’s connect and build generational wealth together. Have a prosperous week!

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Legacy Investing & Wealth Management Market Mondays – 2/5/18

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

Today was an unprecedented sell-off in the stock market and I wanted to try to explain it for those who are wondering what’s really going on. I realize we have newer investors here and I want to first explain what these stock indexes are that you may hear about on the news. The Dow Jones Industrial Average or better known as the DOW is a stock market index of 30 large US companies and is one of the 3 largest indexes. As you may know the other two are the S&P 500 and the NASDAQ Composite. Briefly, the S&P 500 stands for the Standard and Poor 500 and is another index based on the market caps (the market value of a company’s outstanding shares of stock) of 500 large US companies listed on the New York Stock Exchange or NASDAQ stock market. The NASDAQ Composite is the newest stock market index that is also widely followed and trades on the NASDAQ stock market.

We had what some may call a flash crash and it is becoming more and more common in modern day trading, partly because we have a lot of automated and algorithmic trading often moving huge amounts of money. Stock prices are based on supply and demand meaning that when everyone is fearful and selling their stock it causes a large amount of inventory to flood the market. When no one wants to buy the inventory then the prices have to drop. When still no one is buying the prices drop further and further. It’s almost like a snowball rolling downhill. As it moves down it gets bigger and bigger, moving faster and faster. Today at one point the DOW had dropped almost 1,600 points which numerically is the biggest drop in history. Sounds like a big move but to put it into context, the DOW has gone up almost 7,000 points since last January so it just sounds scary and makes a great headline. The amount of points is not as important as percentage moves, which is really what affects your money and 401k values. That intraday move of 1,600 points lower was around 6% which is a big one-day move but it pales in comparison to the biggest percentage move in history which happened in 1987 as the DOW fell 22% in one day! If that were to have happened today that would be more like an almost 6,000 point decline! Thankfully, new protocols have been implemented so that type of decline doesn’t happen again, at least not in one day.

In some of my earlier blogs I have mentioned that we have gone a really long time without a correction or significant stock market pull-back. A correction is defined as at least a 10% move lower (peak to trough) and anything up to that percentage is a pull-back. So far the DOW has actually had a 10% correction and the S&P 500 is very close to that. We may fully get it tomorrow as the futures (the level the market may open at in the morning) are indicating a lower open once again. Without going into all the reasons why we dropped, this decline was way overdue and really is something that is needed in healthy markets. Here are the reasons I think it’s short lived:

  • The world economy is still recovering
  • Unemployment is at record lows
  • Wages are starting to expand
  • Corporate profits are exceeding expectations
  • The tax cuts haven’t been fully factored into upcoming company earnings
  • Personal tax cuts will encourage more spending which will continue to boost our economy
  • Infrastructure spending package likely in the next few years

I think this is a good time to get in the market and I see a higher stock market later this year. To further explain why this decline was necessary here is a picture of the S&P 500 with a few technical levels I added. Think of this chart like a hockey stick. When you see the right side of that stick curving up really high it’s only a matter of time before you get to the end and fall off lol. I believe we are either coming down to the 200-day moving average (a widely followed technical level) or the bottom of the red trend line that I drew (in between the yellow 50-day moving average line and the 200-day moving average) or even somewhere in between.

2-5-18

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Step out of your comfort level and get your finances in shape this year! Let’s connect and build generational wealth together. Have a prosperous week!

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Legacy Investing & Wealth Management Market Mondays – 12/18/17

Happy Holidays!

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

It’s been a few months since my last blog and I’ve been busy as ever. Don’t worry, you’re going to start hearing from me with a little more regularity soon.

This is a special debt busters edition as I have a testimony to share. A while back I posted a blog about making sure your income was a lot more than your expenses. Since I like to practice what I preach, I took a part-time job at the beginning of the year. A new administration took over and there was a lot of uncertainty on what taxes would look like among other things. Although I didn’t really need a part-time job there was a method to my madness. For starters, I wanted to do something I’ve never done before: Pay off my new 5-year auto loan in 8 months. Every month, I made a large additional principal-only payment and do you know this month my car is now paid off 4 years and 4 months early! Since I’ve achieved everything I set out to do, I let go of the part-time job just in time for the holidays!

The same thing can be achieved with a mortgage, student loans or any other type of debt. As you can tell, I hate debt and love the idea of living without any financial worries. I strive to be able to pay cash for everything one day, including cars and other big-ticket items. As long as you’re in debt you’re not totally free (Proverbs 22:7) and I want the most fulfilling life for myself, my family, and for you too! I hope this encourages someone to do what may seem like the impossible and tackle your debt. Having a plan and sticking with it is key to achieving anything you want in life.

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The S&P 500 has gone up over 200 points or roughly 8% since the last time I blogged. We ended the day today at an all-time high of 2690. We still haven’t had a meaningful correction which is a little scary because whenever it happens it could be more than what we want. All small dips have been bought and the market keeps marching higher.

Here is what’s moving the market higher: Passage of the tax overhaul with the centerpiece being the much lower 21% corporate tax rate, much better-than-expected retail numbers, and continued global growth. I don’t see anything stopping the rally and any sell-offs will probably be short lived and once again buying opportunities.

Bitcoin has continued higher and has probably been the best investment for those early believers this year. I give anyone props who bought below $1000 in January and held all year long. We are now flirting with $20,000 per Bitcoin, up a whopping 2,200% this year alone!

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape in the New Year! From my family to yours I wish you a happy holiday season and the best and brightest year ahead.

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

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Legacy Investing & Wealth Management Market Mondays – 9/4/17

Happy Labor Day!

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

I’ve seen some interesting opinions on different rules of thumb for saving and financial management and I wanted to share a few from my perspective. It’s important to have discipline when you’re trying to achieve financial goals. Writing down a plan, establishing a system and sticking to it for a certain amount of time (usually at least a month) creates a habit and makes it easier to maintain. And that first rule of thumb applies to just about any scenario.

This is common sense but saving at least 10% of your income in an account that you do not touch or withdraw from is a must. The hard part is actually committing to doing it. Once it becomes a habit you will start seeing the benefits and it encourages you to continue saving. This was one of many important financial lessons my mom taught me and it is being passed down as we speak.

Having a good rainy day fund is so important to wealth building! Living paycheck-to-paycheck is a sure-fire way to making the same mistakes of so many others. You should strive to save at least six months of living expenses in case there is an emergency, layoff or other unfortunate event. Remember, when you fail to plan you’re planning to fail! It’s usually not a question of if but when emergencies occur, preparing yourself will sustain you in so many ways and prevent you from digging a hole that is extremely hard to overcome.

As you are saving in your 401k or comparable retirement savings plan you should have at least 3x your annual salary saved by your mid 40’s. By your mid 50’s, 5-6x your annual salary saved should be sufficient. To accomplish these goals you would generally need to have started in your 20’s. Many people don’t begin saving until later in life and it’s ok, you just have to save aggressively and max out your annual contributions. The bulk of your money should be in stock funds which have proven to give more long-term growth than what I call the sloooww money bonds. Bonds are what people add in more to their portfolio as they get older. You should plan on spending about 80% of whatever your annual income was and even more in your first few years. Obviously, the earlier you decide to draw Social Security, the more personal savings you will need. Building your retirement plan solely on Social Security is not a wise strategy as it may or may not be around in its entirety as we age.

Finally, when buying your home you should spend anywhere between 2.5-4x of your annual income. For example, if you make $75K a year your house loan should be NO MORE than $300K. The smaller the home loan, the bigger the amount of equity you have, the better your chances of being able to keep your home lol. The goal should be to pay off the mortgage (preferably a 15-yr loan) as quickly as possible and not refinancing every 5 years. As interest rates continue to rise home affordability may skew more toward the lower side of that range. One reason the housing collapse was so devastating is because so many people were sucked into predatory lending programs and getting in way over their head. You never want to buy more house than you can afford and room should always be left in your budget for repairs and unexpected emergencies.

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The S&P 500 ended this week at 2476, up about 2% from my last blog on July 4th and is near all-time highs. Outside of a North Korean missile test here and there and back-and-forth Presidential smack talking, the market has been quiet. Many of the big fund managers are on vacation and trading volume is light especially at the end of summer which can keep us in a trading range.

September is usually the worst performing month of the year and there is the potential for a pull-back. It has been over a year since we’ve even gotten a 5% pull-back and with the escalating tensions between the US and North Korea, that could be the catalyst to make it happen. Based on history, chances are much higher that we get that 5% or more before the end of the year. Devoid any other black swan events, the continued discussion on corporate tax cuts should keep the major indexes on track of closing on a high note by end of year.

SP500-9-4

The above chart is the S&P 500’s performance over the last year. Is your bank account moving higher like this?? Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together.  Enjoy your holiday and have a prosperous week ahead!

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

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Legacy Investing & Wealth Management Market Mondays – 7/4/17

Happy 4th of July!

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

There are many ways to invest and it’s important to be diversified in your strategy. I thought I was doing a pretty good job of that until my eyes were opened to other ways of investing. As you invest it’s important to also have a network of likeminded people around you as trading can get lonely and make you feel you’re on a deserted island. Garland Dabney, one of my friends from church and also a Howard University grad (HU, You Know!) became an investment partner and recently schooled me on Bitcoin.

Bitcoin is a form of virtual decentralized currency founded in 2008 and is used for electronic purchases and transfers. Similar to using a credit card for online shopping, Bitcoin can be used the same way with businesses that accept Bitcoin as payment. The difference is the middle man is gone meaning there are no transaction fees as you would have with banks and credit card companies. Many large companies worldwide are beginning to accept Bitcoin as payment and it’s widely considered the currency of the future. Here is a video link that explains it in layman’s terms – https://www.youtube.com/watch?v=LuA3xb-L8r8.

People also trade Bitcoin as they would a stock or currency and because it’s in its infancy stage, many people have made (or lost) enormous amounts of money. As of the time of this blog Bitcoin is trading over $2,500 per Bitcoin. Here is a chart for the past year and you’ll see what I’m talking about lol.

BitcoinChart

Those who invested in January of this year at around $1,000 and sold in June at $3,000 were extremely excited. Or even better, think about those who bought at around $200 per Bitcoin in January of 2015 and sold recently! The extraordinary run-up this year was mainly due to countries in Asia beginning to accept Bitcoin (along with speculative trading) and that trend should continue worldwide. You cannot trade Bitcoin in a regular brokerage account but there are ways to do it. If you decide to trade this you should start small and be disciplined due to the wild price fluctuations. Contact me for more information.

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The S&P 500 ended yesterday’s session at 2429 up slightly since the last blog at the end of May. The market has basically moved sideways over the last month waiting on direction. Since November, any sideways movements have resolved themselves by eventually moving higher and making new all-time highs.

The world economy has been improving and the large US banks all recently passed their stress tests which had not happened since before the global financial crisis. Interest rates have been moving higher with more rate hikes to come and the massive central bank money printing operation (Quantitative Easing) which helped the US recovery is coming to an end. Rising interest rates are a sign of a stronger economy and this helps to curb inflation. Stock markets can continue moving higher as this happens but higher rates do eventually hurt corporate profits. The proposed tax reform which will help just about all corporations is another reason why I think US stocks will keep moving higher into next year. There will be small corrections along the way but unless something drastic happens investors are looking for more gains in the quarters ahead.

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the financial markets. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together.  Enjoy your holiday and have a prosperous week ahead!

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

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Legacy Investing & Wealth Management Market Mondays – 5/29/17

Happy Memorial Day!

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

Why is financial planning important for your future? Why should you have a written financial plan and monitor/update it frequently? If you gave a blank stare on both questions then it’s time to take an honest look at your personal finances and start planning for the future. If you’re ok with working until you’re in your 80’s and robbing Peter to pay Paul then no planning is needed on your part lol.

Back in 2010 I began mapping out our financial future year by year, factoring in unexpected expenses and steering our retirement. To help me do this I developed a formula-driven spreadsheet (Roadmap to Financial Freedom) detailing where we’ll be each and every year for as long as I want. I know when we’ll become millionaires and approximately how much each of our accounts will be worth at any given time. My Financial Freedom package offered on my website includes these tools to help you get started.

People are always looking for a get rich quick scheme but investing and planning for your future is the total opposite. It’s a slow calculated process where if you are diligent you will reap the benefits and assure yourself the early retirement you deserve. There is a bible verse that I added to our spreadsheet that says “Money wrongly gotten will disappear bit by bit; money earned little by little will grow and grow – Proverbs 13:11 (Contemporary English Version).

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The S&P 500 ended the week at 2415, another all-time record close. Last week it sold off to around 2350 over concerns about what a possible impeachment of the President would mean for the tax reform and overall Republican agenda. Those fears quickly subsided and now we’re back to breaking records almost daily. Wall Street could care less about who is in office as long as the tax reform plan is still in place.

Last week I banked my largest single trade ever. Take my class and I’ll reveal some of my money-making trades ;). I’m also testing some other types of investments with more to come on that.

Gold is back on the rise and technicians see a break out to the upside soon. Some people think gold is not an investable asset but it most certainly is. It’s actually done much better than the S&P 500 since 2007. Generally, most asset classes have been rising with the exception of a few.

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the stock market. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together.  Enjoy the rest of your Memorial Day holiday and have a great week!

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

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Legacy Investing & Wealth Management Market Mondays – 4/10/17

Legacy Investing & Wealth Management Market Mondays – 4/10/17

Happy Monday!

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

Sorry that I’ve been missing in action but my work schedule has been crazy. I will get back to more of a regular schedule soon.

I’ve seen some really good articles recently on ways of saving money and eliminating debt. From the Pennyhoarder article I shared on Twitter last week here are a few ways of eliminating debt. I’m also adding a few of my own:

First, if you have a million credit cards all with high varying interest rates, either consolidate them by getting a personal loan or do a balance transfer to one credit card. Personal loan rates (depending on your credit score) can be in the single digits compared to the average credit card rate. Before you do a balance transfer make sure you check the terms. Most will offer no interest for a certain period of time then jump you up to 15% or so lol. The devil is in the details!

Another way is to use Dave Ramsey’s debt snowball method – paying off the smaller credit card balances (while still paying the minimum balances on the others) then moving on to the next credit card. Even if the interest rate is not that high on the smallest credit card balance you are wiping away credit cards one at a time. Here is what I would add; as you’re paying the credit cards off you should be closing some of the cards with the highest interest rates. Leave the ones with the lower interest rates open for credit score purposes. The challenge while you leave some open is to stop using them unless it’s for small purchases that you pay off early every month. This will get your credit score moving up again.

Negotiating your bills down is a strategy I’ve never used before but could be worth a try. There is even a free app called Clarity Money (looks like only on iOS right now) to help you find and cancel wasteful accounts, get organized, manage and lower your bills by taking advantage of discounts you may not know you’re eligible for and get better deals on credit cards. You can also create a savings account with automatic transfers to encourage saving but you can do that with most online banking.

Making extra payments on any existing loan will cut your payment schedule and also the amount of interest you pay. This is especially true if you’re a homeowner. You would be surprised at the number of years you cut from a 30-year mortgage from paying lump sum amounts to the principal. We had a 30-year loan and cut about 7 years from making extra payments once a year. I’m just talking about paying up to $5,000 per year for about 5 years straight. Whatever strategies you use to pay off debt there needs to be patience and diligence. It’s not going to happen overnight, but it will so keep focused and you’ll look up one day and be debt free!

stock-chart-INMARKETNEWS

Since the last Market Mondays post, the S&P 500 went up several percent and is currently trading at 2357 as of today’s closing. It’s been trending lower since making an all-time high on March 1st. Looking at the charts, the S&P 500 is forming a wedge and its either going to break down or break out. See the picture below and look to the right at the red lines drawn to see the wedge pattern.

Since we haven’t had a correction in so long (since election night) we’re overdue and it very well could have started in March. It would be healthy and everyone is looking for it. Once that happens then I think the market will resume higher but I’m not very invested until then.

SP5004-10

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the stock market. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together.

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

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Legacy Investing & Wealth Management Market Mondays – 2/6/17

Happy Monday!

My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

Saving money is one of the wealth pledges you can find on my website under “The Legacy” tab and what I feel led to discuss today. Now more than ever, saving money is especially important if you want to build wealth. There is a new Administration and trust me, the middle and lower classes will not benefit from the new policies Trump is planning on implementing. First, making all things “American”, implies less overseas trade of cheap foreign goods and services which will drive up the cost for just about everything, creating inflation. Inflation simply means it will cost more to purchase things you consume. Second on his agenda is cutting taxes for the wealthy as well as business taxes. None of us fully know the President’s ever evolving platform but we do know his intent on slashing government programs. This will be devastating for our communities creating more poverty than what we experience today. This Ronald Reagan style “trickle-down economics” didn’t work before and it’s not going to work today. The more money that is given to the wealthy, the more money they keep. This wealth doesn’t spread or flow into the economy as one would think. However, it’s been proven time and time again that stimulus given directly to the middle and lower classes flows right into the economy and expands the middle class.

Many of us do not have a money cushion to refer to in case of hard times nor any consideration for retirement. That is one reason why debt has gotten so out of control, and disproportionately in the Black community. Did you know Whites are about 16x wealthier than Blacks?! According to a recent Forbes study, a typical White household is worth $111,146 while a Black household has $7,113 in wealth! Again, we don’t know how policy will unfold but entitlement programs (i.e Social Security, Medicare, etc.) may be cut or even eventually phased out which is why saving money and investing now is absolutely imperative.

I don’t just preach this stuff and not do it myself which is why during these uncertain times I’ve even taken measures to cut our own spending, focusing on saving more and creating multiple streams of income. Worrying about how I’m going to make ends meet is not something I’m going to deal with as I get older; so taking steps now is vitally important!

stock-chart-INMARKETNEWS

Roughly 2239 was where the S&P 500 ended the year in 2016 and we are up about 2.5% (2293 as of the mid-day). We have been in a consolidation pattern since mid-December, meaning we are trading sideways in a fairly narrow range. The rally that started Election Day has stalled and the market is waiting on another reason to go either higher or lower. We may have a small correction which could be around 5% but due to our current political landscape, I think the general direction of the stock market will be higher over the next few years. That is given this Administration doesn’t get us into big trouble.

A few trades that have been working out are stocks in Industrials, Banking, Technology, Emerging Markets, and even Gold, Copper and other materials. They should continue to work in this environment and I would be buying them when the stock market pulls back. As everything changed when Trump was elected, be careful on Gold since inflation and uncertainty concerns are the only real reason this has been rising. Rising interest rates and stock market prices as well as a rising dollar are the reasons Gold investors should be careful.

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the stock market. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together.

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

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Legacy Investing & Wealth Management Market Mondays – 1/2/17

Happy New Year everyone!

I hope you had a spectacular holiday season and I wish you all the best as we begin a new year. My blog brought to you by Legacy Investing & Wealth Management gives you a quick and easy read focusing on stock market education, empowering the newer investor as well as giving you the most recent stock market analysis. For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.

Since it’s a new year I want to start with talking about cleaning up your credit or establishing credit and preparing for investments or major purchases in your future. If you have really bad credit and are thinking about hiring a credit restoration company, do your research on them. I discussed this in a prior blog but personally, I do not recommend it. There are lots of things you can do yourself to improve your credit rating without paying someone else to do it for you. If you don’t already check your credit annually, go to www.annualcreditreport.com and see what creditors are reporting about you. Anything that is inaccurate needs to be disputed and removed as soon as possible. The creditor has 30 days to look into your claim and if they do not respond then it can come off your credit report, which will start increasing your credit score. Repossessions, bankruptcies and foreclosures have a specific time limit they can be on your credit report so make sure you check the statute of limitations. Sorry y’all but the student loans do not come off…ever, until they are paid off.

If you don’t have much credit but are renting, make sure your rent payment history is being reported to the credit bureaus. If it’s not here is a link with more information on making sure it is being tracked – www.experian.com/rentbureau. If you’re paying your rent on time this should absolutely be reported which helps you in the long run. They say credit cards are the devil and that can be true if you have no discipline but having at least one or two can help you significantly increase your credit score. Build your credit score by keeping low credit card balances and paying them off completely every month. This helps you avoid finance charges and allows the monthly reporting about you to be a credit score booster. Finally, make sure you have at least several utilities or other bills in your name that you are consistently paying on time. For the older kids still at home, teach them about credit early and transfer that phone out of your name to theirs. Start making them responsible for making their payments on time and they will be simultaneously building good credit.

stock-chart-INMARKETNEWS

The last blog I wrote was the day before the US General Election and the media as well as the majority of us thought Hillary Clinton would be our next President. As we got the surprise of our lives, the Dow quickly dropped over 800 points but staged a stunning recovery and rally the next day which continued through the end of the year.

A Trump victory was believed to be supportive of a recession but a Republican run House AND Senate was not factored in so the uncertainty around more gridlock and business-friendly policies subsided. This is the reason the stock market rallied so heavily and it may continue in 2017 as tax cuts and aggressive fiscal policies become reality. In essence, a recession will happen at some point but it doesn’t appear as likely as it did before the election. Economic expansion is likely to continue for now as employment is at multi-year highs, wage growth is appearing to be on the rise, the housing market and corporate profits are strong, and US GDP (Gross Domestic Product) is expected to increase due to big corporate tax cuts and heavy infrastructure spending by the new administration. This could continue for some time before growth begins slowing and the stock market starts falling.

I attached a monthly chart of the S&P 500 performance since the Great Recession with trend lines drawn to show areas of support and resistance. I’ll talk more about that in future blogs but for now support is the bottom red line and resistance is the top line. Our current situation is at the far right side where we are in the middle of these trend lines. We have some room to go either to the upside or downside but any selling we have should be fairly brief as we keep moving higher. This is of course given we don’t have some major catastrophe to deal with.

I added some notes on this chart with areas where investors would have made serious money buying and selling the market. This is an example of technical analysis which we will talk more about later. Trend lines and moving averages are just a few of the technical indicators I use when buying and selling the stock market.

sp500sincerecession

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the stock market. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape for the New Year. Let’s connect and build generational wealth together.

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

 

 

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