Monthly Archives June 2016

What Happens After a Big Drop on a Friday?

Information from https://lplresearch.com After a 3.6% drop on Friday, the S&P 500 dropped another 1.8% yesterday, for the worst two-day decline since late August 2015. Here is where things get interesting: the CBOE Volatility Index (VIX) surprisingly dropped 7%. Remember, the VIX tends to trade inversely with the S&P 500—especially when the S&P 500 drops significantly—as the need to hedge portfolios increases, and thus, the VIX usually gains. Yesterday, that didn’t happen. Why is that? One answer is, there was so much worry and fear on Friday (and over the weekend) of an upcoming Brexit-related drop on Monday, that a nearly
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Market Update: June 28, 2016

Information derived from https://lplresearch.com Market Update Stocks, oil reverse course. Global equities are taking a breather from the steep selling pressure over the last two days as U.S. markets rise in tandem with WTI crude oil, which is finding support around its 50-day moving average, and European indexes, which are up 2-3% across the board. Today’s action comes on the heels of a second day of declines on Monday that left the S&P 500 down another 1.8%, as materials and financials continued to lead the retreat. Overnight, Asian markets recovered from a rocky start; the Nikkei Index closed near flat and
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Maybe Sell in May and Go Away has Some Validity After all… or at Least Avoid June

Source: LPL Research FactSet 05/26/16 Indexes are unmanaged and cannot be invested in directly. Past performance is no guarantee of future results.Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted.The Standard &
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Wait… We’re in a Recession?

Recessions are typically defined as two quarters of negative GDP growth.  Currently, the US is experiencing anemic GDP growth, but it has not been negative, as would be indicative of a typical recession. (Thank God for higher Healthcare costs to help stimulate the GDP -see figure 1 ) The recession we are currently experiencing is an earnings recession.  An earnings recession is categorized by two negative quarters of earnings growth. Important take away: not all earnings recessions have been preceded or followed by an economic recession although 9/12 have experienced an economic recession. For more please click here Timothy Picciott CFP®  CRPC® The opinions voiced in this material
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Where Are Interest Rates Going?

*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the article may not develop as predicted and there can be no guarantee the strategies promoted will be successful.   All charts can be obtained from www.federalreserve.gov The dots in the charts represent the estimations of future interest rates by Federal Reserve Open Market Operations Committee members referred to as the FOMC Where are interest rates going? Click for Video When people talk about interest rates rising what they are generally
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How much you need to save to be a millionaire

Ever wonder what it takes to become a Millionaire? Here is a very simple and helpful tool to get your there. Its important to play around with the inflation rate, especially for Millennials. Simply put… a 30 yr old who wants to save $1m by retirement at age 65 would only have the purchasing power of around $375,000 assuming a modest 3% inflation. Find out how to become a millionaire here
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