Legacy Investing & Wealth Management Market Mondays – 6/20/16

Happy Monday everyone!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a regular blog giving 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.  Please tune in to my Facebook Live and Periscope ONLINE EVENT on Sunday, June 26th beginning at 8PM EST (note the day and time change). 

A lot of wealthy people hire Investment Advisers to manage their investment accounts for a small fee.  And if you have a good adviser you’re normally making a lot more than the fee you’re paying out.  Is the first thought coming to your mind some of the clowns you might see on the show American Greed?  A stand-out is (or was) popular Investment Adviser, Bernie Madoff as he MADE OFF with a lot of people’s hard-earned money.  What he did first (as well as what lots of other crooks do) was earn the trust of his prey.  He then gets them to turn over their hard-earned money….(blank stare).  Next, he comingles the money with all the other victims and sends them bogus statements showing what their money is supposedly doing (really hard SMH)  So…..lesson #1 – never give someone your money (without having full control of your account) and expect that they will do right by you.  Don’t get me wrong, there are a lot of honest people out there and this rarely happens but you don’t want to be one of the sorry few.  This probably reminds you of how you’ve lent money out never to see it again huh?  You should ALWAYS have access to your money and be in control of it even if someone else is managing it! Common practice with most Investment Advisers is you open up your investment (brokerage) account(s) which will always be linked to YOUR personal checking or savings account, not theirs lol.  Their job is to trade and hopefully make you money.

On the flip side, managing your own accounts is actually a lot easier than you may think.  The #1 reason I hear people tell me why they’re not investing is because they don’t understand the stock market.  Hey, I didn’t either until about 8 years ago…and I trained myself; so if I can do it, so can you!  If this describes you then here is where I come in.  For a one-time fee I can get you started and give you the tools you need to be a lifelong successful trader.  I also will give you access to expense and forecasting tools that have helped me significantly.  The Word says write the vision and make it plain and that is exactly what I did regarding my finances, outlining where I want to be in 5-10 years.  For that one-time fee you will gain from me what took years to find out and develop.  It’s a small price to pay for something so potentially life-changing.  Check out my website for more info at www.legacyinvesting.net or just tune in this Sunday.

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The S&P 500 ended this past Friday at 2071, about 1 ½ percent lower from where it was 2 weeks ago. The Feds decided not to raise interest rates at the recent meeting which was not a surprise and the stock market had already priced that in over the last month or so.  The talk over Greece and whether they will exit the European Union (EU) is back in the news and there will be a vote later this week by the British on the possibility of the UK leaving the EU.  There is anticipation that the UK will remain which could spark a short-term stock market rally since the market is undecided on what will happen.  The fear index in the market, called the VIX is has been moving higher which usually implies a lot of nervousness that the stock market is currently selling off or that a sell-off is anticipated.  Gold has been moving higher for quite a while now which has also been an indication that there is building fear in the market.  I’ve made a practice of investing in the gold miners which always sees amplified moves compared to gold itself.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Don’t forget to tune in this Sunday evening and I’ll walk you through everything.

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 – 6/6/16

Happy Monday everyone!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a regular blog giving 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.  I’ve shifted these to several times a month during lower periods of stock market volatility.  For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.  Our main Open House will happen this Fall but I will host a Facebook Live and Periscope ONLINE EVENT on Saturday, June 25th beginning at 1PM EST.

One of my family members asked me a question about stocks a while back and I thought it was a very good one so I decided to talk more about what makes a stock’s price go up or down.  Generally, a stock’s price moves higher or lower based on supply and demand.  The same way food or gas prices move works exactly the same for stocks.  The more people who want to buy a particular company’s stock, the more demand it creates for it.  If there is a limited supply or shares of stock then the stock’s price will usually rise.  If people are dumping their shares of stock and we don’t have enough buyers of it then there will be an excess supply of stock and the price will fall.

Here are just a few of the reasons that may cause excess or limited supply of stock.  If a company has a really good quarterly earnings report which exceeds the expectations of the bank analysts who follow them, then prices will likely go higher.  If the company decides to buy back their shares or if you have the super-rich buying millions of shares then this will create a limited supply and cause the prices to move higher.  Usually if you have a game-changing company with great management and limited competition (like Apple, Facebook, or Netflix, for example) making tons of money, beating analyst’s expectations, and they are able to remain relevant and continue to grow over time then the stock’s price will grow exponentially.  For example, Apple (AAPL) is up some 20,000% since it started trading in 1980.  In other words, a $10,000 investment in Apple then would have given you around 20,000 shares (at $.50 a share) which today would have been worth around $2,000,000!

Share prices will go down for the opposite reasons that I listed above.  Just a few quick examples are the company has a horrible earnings report, the CEO gets caught in a scandal, the company gets caught falsifying their earnings, or they have repeated bad earnings reports, the business model is let’s say…messed up lol (think Radio Shack, Circuit City, or any 8-Track Player companies you know of lol), or other similar companies are in a declining market (i.e. stores in shopping malls).  Other reasons could be increased competition with declining profits, bad forward guidance by top management or overall bad management, too much debt, majority share holders dumping their stock or even a recession.

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The S&P 500 ended this past Friday at 2099, moving higher the past few weeks.  We are still in a range and unless we either move higher than the May, 2015 high (2134) or we move lower then we were this past February (low 1800’s) then we will continue to be in this range.  Even if we’re moving sideways which is what this pattern from the last few years is called, a lot of money can still be made.  For the type of trading I do range-bound patterns like this work beautifully J.

We only created 38,000 jobs in the month of May, typically a pretty good month for jobs.  We’ve been averaging over 150,000 jobs going back several years.  If we see more months like that it could spell trouble for the economy and the stock market.  The Federal Reserve was expected to raise interest rates later this month but with a jobs report like that it looks iffy.  The stock market could rally up until the Fed meetings as they are now anticipating rates will not rise this month.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Start investing in your future today!

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 – 5/23/16

Happy Monday everyone!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a regular blog giving 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.  I’ve shifted these to several times a month during lower periods of stock market volatility.  For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.  Our main Open House will happen this Fall but I will host an ONLINE EVENT on Saturday, June 25th.

There are a lot of investing apps popping up designed for people who want to invest right from their smartphone.  Some allow you to pick your own stocks and others you can totally leave that up to a professional advisor who manages the funds you would select from.  When getting started a common question you’re asked is what your preferred style of investing?  Investing styles can range from conservative to risky and they all usually follow the same account opening process as regular brokerage accounts as discussed in the last blog.  An example of an app that is stock-specific is Robinhood, meaning it will allow you to pick individual stocks/ETF’s, etc.  This one right now happens to give you free trades and it makes its money from the idle cash that are in the accounts.  There are some apps that act as true portfolio managers and manage your money according to the style of investing you prefer (Acorn or Betterment, for example).  Fees appear to be nominal for both.

This type of investing could be a great choice for many on-the-go people who don’t have the time or simply don’t want to learn how to invest for themselves.  Also, some people may be intimidated with meeting with an Investment Adviser and using an app can take away some of the anxiety associated with investing.  Whether or not you want to have direct contact with customer service is also something that needs to be considered.  As with most apps, customer service can be very limited.  When dealing with money I want a company who I can meet face-to-face with or easily call to get a live body – ijs lol.  Investing with competent, honest people who understand the stock market and have a proven track record of results are some features of using conventional Investment Advisors.  This is why I believe there will always be a place for people like me, as my goal is to either invest your money OR put you in control and teach you how to do it yourself.

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The S&P 500 ended this past Friday at 2052, a little lower but very close to where it was 2 weeks ago.  Most of 1st quarter earnings are out and we’re moving into a quitter period as far as company news.  We will still be getting economic news and Federal Reserve decisions which could move the market in the coming weeks.  The Feds recently said in a statement that the US economy appears to be doing fine right now, inflation has risen to its 2% target and overall employment has hit its goals, signaling more interest rate increases.  The market now sees a bigger chance of a small June interest rate hike and that could send the stock market lower for the short-term.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Start investing in your future today!

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 – 5/9/16

Hello and Happy Monday!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a regular blog giving 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.  I’ve shifted these to several times a month during lower periods of stock market volatility.  For more information including past blogs please go to www.LegacyInvesting.net; look for the Market Mondays tab under “The Legacy” for all blogs.  Our main Open House will happen this Fall but I will host an ONLINE EVENT on Saturday, June 25th.

I want to discuss opening your brokerage account (for the beginning investor).  A brokerage account is an account where you can trade stocks, ETF’s or mutual funds, bonds, options, and other securities.   There are a lot of them and they all have different rules, capability of trading (some you can trade all securities and some you can’t), fees, type of trading software available, etc.

You will need your social security number, driver’s license or passport info, employment status and financial statement (assets and liabilities).  Most applications are quick and can be completed online.  You will also need to indicate your level of investing experience and level of risk tolerance which will affect the type of account you are approved for.  For example, if you say you have 5 years of experience and you are only looking for aggressive growth or speculation, chances are you could be additionally approved to short stocks and trade options.  If you select asset/capital preservation and no experience, you probably won’t be approved to trade options, various other securities or short stocks.

You have to also shop around as many brokerage firms now do not have a minimum opening deposit.  Some charge rather high commissions for trading and some charge very little.  I personally like Interactive Brokers as their fees are lower than a lot of others.  You should always start with your personal bank as many of them have a brokerage side of their business and may give you a break on commissions because of your relationship.  For example, Bank of America uses Merrill Edge (Merrill Lynch) and if you meet certain criteria some of your trades could be reduced or even free.  Always check out the background of your brokerage firm before you open an account with them by going to www.finra.org/brokercheck or by calling (800)289-9999.

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The S&P 500 ended this two-week period on Friday at 2057 which is virtually flat on the year.  That is also 34 points or almost 2% lower than where it closed two weeks ago.  It appears we are range-bound until a catalyst comes along to move the markets.  It’s anyone’s guess right now what that will be.  The catalyst could come this month as May in years past has been the start to big sell-offs.  Or it could come around June 15th when the Federal Reserve has their meeting.  If the interest rate is raised it could then spark a sell-off; or if it’s not a rally to all-time highs could happen.  My point here is that any number of things can happen to move the market higher or lower.  Normally, I have an upward bias to the stock market but as I’ve said before we’ve had a 6-year rally, we’re on the higher range of the S&P 500 valuation, and a new president is coming.  Because of that I am a little cautious on the overall market and I play it in other ways.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Have a great week and I wish you many happy returns!

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 – 4/25/16

Hello and Happy Monday!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a weekly blog giving 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 been trying to plan an Open House where you can learn about investing in the stock market but I’ve been a lot busier than I thought so it will likely be this Fall.  I will do an ONLINE EVENT in late May or June with details coming soon.

Just about everyone knows by now that the music legend Prince died last week.  To me he was on the level of Michael Jackson and was a musical genius who will be greatly missed.  I did some research on how he handled his money and ran his business.  He was in the top 10 of wealthiest music artists with a net worth of at least $250 million.  His catalog is said to be worth up to $1 billion.  With thousands of unreleased material, record sales that are skyrocketing due to his death, the royalties he receives from his material plus the countless artists he has written for, his already massive estate is set to get even bigger.

He wanted to control his music, own his publishing and copyrights, and was a pioneer for artists controlling their own musical career.  He wasn’t going to allow the record companies to pimp him where many artists have made that mistake.  I truly admire him for being bold enough to put his destiny into his own hands.  This is the recipe for success in business and most areas in life.  Prince had enough money to leave family which is one reason why I invest in stocks.  I am planning now and growing our accounts so that I can pay for my children’s college expenses and have something to leave them, my grandchildren, or better yet, my great-grandchildren J .  If you don’t have a pot to piss in or not enough cash to sustain you in retirement, or money to leave to children/family, then you should definitely be investing.  Don’t look up years from now and wish you had done something.  Control your own destiny!

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The S&P 500 actually went higher over the last two weeks, ending at 2091.  I’ve been expecting a lower market for a while now and that’s how the market does sometimes.  It acts irrationally, and sometimes for long periods of time.  I still believe we are going lower, especially as we move into the next presidential cycle and no one (including me) can time the market with complete accuracy.  So since we’ve been drifting higher past all the areas of resistance over the last few months, we should expect to get to all-time highs again before the market moves significantly lower.  The infamous “sell in May and go away” is coming so anyone buying stocks at these high levels should be careful.  We’ve had some pretty nasty sell-offs in the summer.  Personally, I’ve been selling as we’ve gone higher and locking in profits.

We are in the middle of earnings season and analysts who study various companies have lowered the bar so much that some companies are beating.  It’s the theory of less bad is pretty good and that is having a positive effect on stocks.  Other than that it’s been pretty quiet in the stock market.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Have a great week and I wish you many happy returns!

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 – 4/11/16

Hello and Happy Monday!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a weekly blog giving 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.  Our next OPEN HOUSE is coming soon so please plan on coming by to learn more about investing in the stock market.

So as a Black man I’ve been asking myself this question since becoming an investment advisor but especially more recently — why are Blacks more risk adverse than our White counterparts?  Legacy tip – risk adverse means avoiding risk.  An article written back in 1998 (Why More Blacks Don’t Invest in the New York Times Magazine by Glenn Coury) pretty much summed it up.  He noted a 1997 Yankelovich study on 1,232 Black and White households with annual incomes above $50,000.  The survey found by a two-to-one margin that Blacks considered real estate to be the better investment vehicle than stocks, where with Whites it was just the opposite.  Moreover, high net worth Blacks put relatively more of their retirement savings into whole life insurance, a notoriously low-return investment.  It was also very common for many other Blacks in all social classes to stuff money into their mattresses where the net return was 0% and will always be 0% lol.

Generally, Blacks compared to Whites lack the knowledge of investing in the stock market which suggests why so few do it.  Stocks have proven (since the early 1900’s) to be the best investment one can make, creating more millionaires than real estate or any other investment type.  I talked briefly last year about the housing crisis during The Great Recession and how Blacks and Hispanics were disproportionately affected as many lost their homes and never have recovered.  Eight years after the recession most real estate has not bounced back to the prices it was back in 2006, but the stock market has and is still not far off its all-time high from May, 2015.  The S&P 500 skyrocketed from about 667 (around March 9, 2009) to over 2,100 last year.  If the only risk Blacks (in general) are willing to take is buying a house (which IS a good thing) or buying whole life insurance, and we won’t learn about investing in the stock market, we will continue to lag just about every other race in wealth creation.

There are other psychological factors which contribute to the risk adverseness of Blacks going all the way back to slavery.  That is a discussion too long for me to cover in this blog but the DVD I was giving away last year called Generation One: The Search for Black Wealth does an excellent job explaining how institutional racism played a significant role in how Blacks currently view investing and overall money management.  The burning of Black Wall Street in 1921 and many other injustices gave a vivid demonstration of how everything could be taken from you and further encouraged the ideology of many Blacks spending all they make and not wanting to trust others to invest their money.

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The S&P 500 ended the week at 2047, a little over 1% down for the week.  A move lower is warranted given the 200+ point move in the S&P 500 we saw over the last several months.  A lot of news will be coming out over the next several weeks which could move the markets.  1st Quarter GDP, data expected from China, as well as all 1st quarter earnings for all publicly traded companies will start coming out.  We will either break out to possibly new highs or continue moving lower.  Again, considering the big move higher we’ve already had I think we go lower for the short-term.  Don’t get it twisted though, stocks for the long-term are the place to be, especially after any pull-backs or corrections.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Have a great week and I wish you many happy returns!

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 – 4/4/16

Hello and Happy Monday!

Market Mondays, brought to you by Legacy Investing & Wealth Management is a weekly blog giving 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.  Our next OPEN HOUSE is coming soon so please plan on coming by to learn more about investing in the stock market.

This week I want to talk about what is a fair valuation for the S&P 500 and I’m combining the education with Market News since they’re related.  I’ve been bearish of the market overall since the beginning of the year based on the large stock market decline we had recently, the technical damage it caused (broken trendlines, 200-day moving averages, etc.), the fact that many other countries are currently in recession, the valuation of the S&P 500 seems stretched, and also the decline in actual earnings (since 2014) from all the companies that make up the S&P 500.

Every company in the S&P 500 has to report quarterly earnings and when you add up the forecasted earnings for the year some are estimating it to be around $120.  I actually think that is a little too high because last year we were at around $106 (down from $113 in 2014) and I’m estimating we’ll end up around $115 or lower.  A multiple is added to give the S&P 500 a valuation.  Historically, a 17 multiple is around the average.  If you multiply 17 by $115 (forecasted total S&P 500 earnings for 2016) you get an S&P 500 valuation at 1,955.  As of Friday we were at 2,072.  That 17 multiple will vary, meaning sometimes it’s more or less depending on a lot of variables in the economy.

This is one tool you can use to see if our stock market is fairly valued or not.  You won’t know what the actual earnings are in 2016 until all the companies report their 4th quarter in early 2017 but you can get a sense for what’s currently going on by watching quarterly earnings from some of the biggest companies.  If you notice a lot of earnings misses consistently quarter by quarter, then that will tell you that the overall S&P 500 forecast for the year may be a little too high.  We also typically get a pull-back or at least a mild recession as we are changing presidents.  This happens because policies may be changing and consumers and companies alike often pull back on spending until there is clarity on what their political agenda will be.

One thing the stock market is good at is moving up too high or down too low and staying irrational for very long periods.  This is why looking long-term is essential for investors but reading the tea leaves of the economy and the current position of the stock market is also important so that you don’t buy when you should be selling.  Although the market is now up slightly for the year, we’ve had a big move higher and I’m still expecting another sell-off or a slow drift lower.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Until next time, have an awesome 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 – 3/28/16

Hello all! I hope you had a great Easter.  I was on a much-needed vacation last week so that’s why you didn’t hear from me.

Market Mondays, brought to you by Legacy Investing & Wealth Management is a weekly blog giving 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.  Our next OPEN HOUSE is coming soon so please plan on coming by to learn more about investing in the stock market.

So far this year I’ve talked about the different types of securities, 401k’s, the overall markets and options.  Today I want to talk about what to do when you’re older and you haven’t started saving for retirement.

Saving for retirement is essential to living a good life during retirement and also being able to leave your children/grandchildren an inheritance.  You cannot depend on social programs to fully sponsor you during retirement as many do today.  People are living longer and a ton of baby boomers are retiring and looking to draw Social Security.  Because of this, among other issues, there is a real chance that it could be reduced, possibly even discontinued or changed in other ways.  The more likely outcome is that the age limit to start drawing it could be increased in the future because the program is running a cash flow deficit.  With that said, who knows what it’ll be once you become of age…will it be 75, 80, even 85?  Even if the program is not reduced, as cost of living continues to go up, Social Security may not rise with it.

A major benefit to saving for retirement is you put your destiny into your own hands.  If you save up for retirement you can possibly stop working a lot earlier than if you didn’t save.  I know I’m not working until I’m 70+ years old lol.  I’m trying to be in the Caribbean somewhere with my feet up, sipping on a cool beverage.

Most companies offer a 401k or similar program.  If not, then you can go to your local bank and open an IRA (or Roth IRA).  When you start is not important, you just have to get started if you’re not already saving.  You’d be surprised how quickly money can grow over 10+ years.  If you’re older then try to contribute the maximum you can.  You may not get to eat out as often now but you’ll look up decades later and thank yourself for the discipline you exercised.  We have to start planning for our futures and not just living day to day.  I can help you get started so take advantage of your free consultation today.

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The S&P 500 ended the week at 2035 and over the past two weeks we’ve been little changed.  We’re in a trading range and sitting on the higher end of that.  For those who are waiting to buy I would wait until the market comes in and moves to an oversold condition.  Then you can gradually start initiating positions.  You should never commit all or a large portion of your money to buying something.  Always scale into a position.  I’ll talk more about that soon.

There hasn’t been much news in the financial markets which may be why they haven’t moved much.

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.  I can help get your finances in shape so let’s connect and build generational wealth together.  Until next time, have a great, productive 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 – 3/14/16

Greetings! Market Mondays, brought to you by Legacy Investing & Wealth Management is a weekly blog giving 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. Our next OPEN HOUSE is coming soon so please plan on coming by to learn more about investing in the stock market.

The last few weeks we’ve been talking about options and how to trade them. I just gave you the basic strategies but I have quite a few more so you’ll have to purchase the package to get all the info J. This week I want to show you how people use options as insurance on their portfolio.

If you have a lot of your portfolio tied up in various stocks and the market is up big, maybe even overbought, that is always a great time to insure your account against a pullback in stocks. What you would do is buy 1 or several put options on the SPY (tracks the S&P 500), QQQ (tracks the Nasdaq) or other general market tracking ETF. I advise using one of these because any given stock will trade in the direction of the general market up to 80% of the time. The expiration date you select should be at least 4 or more months out. Buying puts when the market has been in rally mode is cheaper because the premium is lower, meaning it costs less to insure your portfolio. If stocks sell off your put will gain in value, hopefully offsetting any losses from your other stocks you own. Once the market has sold off and becomes oversold you can sell the put back and bank the profit.

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Last week I mentioned the S&P 500 may continue to rally and we ended higher, closing at 2022. We closed near a lot of overhead resistance so I’m expecting a pullback soon. It remains to be seen if we see lower lows or if the recent low of 1810 was the near-term bottom. My bias is still lower for the foreseeable future.

One way people calculate the range the S&P 500 will trade in is to look at the earnings of the companies that trade in the S&P500. This is one reason I feel this will be a flat to down year and I’ll talk more about that in the coming weeks. I have a special request about saving in your 401k so I am going to cover that in the next edition. If you have any other topics you would like covered please let me know.

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. I can help get your finances in shape so let’s connect and build generational wealth together. Until next time, have a productive and prosperous 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 – 3/7/16

Hello all, Market Mondays, brought to you by Legacy Investing & Wealth Management is a weekly blog giving 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. Our next OPEN HOUSE is coming soon so please plan on coming by to learn more about investing in the stock market.

Last week we talked about call options and here is a little review. An option is a contract that gives you the right, but not the obligation, to buy or sell a stock or ETF at a particular price on or before a certain date. Investors buy and sell options just like stocks and there are two basic types — call options and put options. This week we will focus on put options.

A put option (the opposite of a call option) is an option contract giving you the right, again not the obligation, to sell a specified amount of the underlying security at a certain price on or before a certain expiration date.

For example: Apple (AAPL) is trading at $95 per share and you believe the stock will go DOWN really soon. You could short the stock (which technically gives you an infinite amount of risk) or you could buy a put option and choose a strike price of $90, for example. One put option gives you the right, but not the obligation, to sell 100 shares of AAPL for $90 per share. What you pay upfront is the options premium which is usually less than 5% of the cost of shorting 100 shares of AAPL @ $90 p/share which would be $9,000.

If you are right and the stock falls to $80 per share before option expires, you could exercise your option and sell 100 shares at $90 per share for an immediate profit of $10 per share ($90 – $80 = $10 profit) minus the small premium cost for the option. Most people just simply trade the option for a profit (which means to sell the option before the expiration date) without actually shorting the shares of stock. If you end up being wrong and the stock went nowhere or shot up to the moon, you could simply let the option expire and your only loss is the cost of the option. Buying puts is the recommended option because again, you have infinite risk if you short the stock and it rallies forever lol. That means you just keep losing money until your account is wiped out. Now you can see why outright shorting a stock is so dangerous. People also use puts as insurance on their portfolio which I’ll cover next week.

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The S&P 500 ended the week higher and definitely partied like its 1999. For the week it gained over 50 points, and it’s not overbought yet which leads me to think it could run a little higher before moving lower again. There is a ton of overhead resistance at the 2025 level so I think it gets there before stopping. It’s not normal for the market to just move straight up without retracing so I think that once the momentum runs out we return to at least 1900. Once we get there then we reassess but I do believe we are still in a downward trending market.

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. I can help get your finances in shape so let’s connect and build generational wealth together. Have a great week, take charge of your financial future and please tune in next Monday.

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.

Posted in Legacy Investing, Legacy Investing & Wealth Management, Market Mondays, Stock Market, Uncategorized | Tagged , , , , , , , , , , , , , , , , | Comments Off on Legacy Investing & Wealth Management Market Mondays – 3/7/16