How Have The Markets Performed This Year?
Like a rollercoaster.The S&P500 index is actually up 2.7% on the year. That’s not enough to cover the fees that many financial advisors and mutual funds charge. Additionally, there have been two periods of dramatic dives. In early February and again on October 10-11, 2018, the Dow Jones Industrial Average dropped 5%. (more…)
On November 19, 2018, the NASDAQ Composite Index dropped 3.03%. (The Dow Jones Industrial Average lost 1.6%.) Some of the Top 10 sell-off volume leaders were elite members of the coveted FANG*, where the most outstanding returns over the past few years have been. Today, Wall Street dropped again, this time losses were more concentrated in the Dow, with losses of over 2%. What’s going on, and, more importantly, what should you do about it? (more…)
This Is The Key To Real Financial Freedom
We had two agendas in Panama City last week.
First, we shared all the practical information, collective experience, and hard-won wisdom we were able to cram into our three days together with the specific objective of arming the crowd in the room with everything they need to know to be able to process, filter, consider, and vet a potential overseas property investment.
It has never made more sense to own real estate overseas than it does right now. The advantages in today’s world are compelling.
Real estate is a hard asset that can appreciate in value while earning cash flow.
That’s true of real estate anywhere. However, real estate in another country is also an investment in your lifestyle. (more…)
October Spooks Investors. A Tale of Bubbles, Speculation and Greed
On October 24, 2018, stocks wiped out their gains for the year. The NASDAQ Composite Index dropped 4.4%, and the Dow Jones Industrial Average dropped 608 points. What happened was a tale of …Bubbles, Speculation & Greed
The average P/E of the S&P500 Index from 1936 to today is about 17.18 (source: S&P Dow Jones Indices). The technology stocks that crashed on October 24, 2018 were all trading at a much higher price to earnings ratio than the average, and most were above 50. Growth stocks can certainly take a higher valuation based upon forward earnings potential. However, when the growth dries up, if valuations are too lofty, then you get rapid corrections such as we saw on Wednesday. In today’s world of high frequency trading and novice options traders and speculators, the correction in a few stocks can trigger a cascade in the larger marketplace. (more…)
I Was Almost Too Afraid To Get Out Of The Car
I sat across the street in my car staring at the door to building number 824. I was 21 years old.
If I didn’t go inside soon, I’d be late for the interview.
But the scene gave me pause. When I was a kid, this was one of Baltimore City’s no-go neighborhoods. In fact, though I’d spent all of my 21 years living in Baltimore, I’d never driven down East Baltimore Street before. (more…)