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!

About legacyinvesting2015

Doug Hayes has always had a mindset of entrepreneurship and wealth building. He started his first business (a community newspaper called “Doug’s Monthly”) at 12 years old. Having always shown an interest with numbers and budgetary management, Doug pursued a Bachelor of Business Administration degree at Howard University, graduating in 1996. By the age of 23, he bought his first house and by 25 he was running his own successful limousine and sedan service in the Detroit, MI area. Doug invested in more real estate beginning in 2006, then in 2008 he saw many good companies substantially undervalued in the stock market because of the financial crisis. It was absolute panic so he took a chance on a few companies, knowing we would eventually come out of the recession and made a profit. He educated himself on investing in the stock market through continuous research and surrounding himself with other traders. He took control of his own 401K and established an IRA account by transferring old 401K’s into it. This gave him flexibility to use various strategies to yield better returns. Doug's own finances have seen highs and lows so he designed a budget system he calls The Roadmap to Financial Freedom. This system helped him to stay focused in paying down debt, saving money, and planning for an early retirement. Seeing an absence of financial literacy in our society coupled with his Christian roots, Doug developed a passion for helping others become successful in financial management. Through the experience he’s gained trading the stock market, he wants to help people develop a road map for building generational wealth. He says "many people have a misconception of the stock market because of their lack of knowledge, but it has proven to be the biggest wealth creator known to man." With Doug’s 20-plus years of experience in financial management, customer service and sales, he wants to educate and help you create a legacy that can be passed down for generations to come. Contact Legacy Investing & Wealth Management today for a free consultation.
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