October 13, 2019
When preparing for retirement, where do you start? That is a question submitted by Tony. Today, on Monday Morning Money we'll answer it.
"I'm 60 years old and want to retire in a few years. My wife and I have been saving in our 401k's, but the thought of retiring seems overwhelming. I need to figure this out, where do I start?"
To learn more or submit your question, please visit: http://flemingwatson.com/where-do-you-start/
September 29, 2019
On any given day a headline—or even a tweet—can move the stock market. And sometimes those moves are extreme. But what really drives stock prices over the long-term? Spoiler alert: Earnings matter.
In this episode we discuss:
- Do Presidential Tweets move the market?
- There is a lot of noise, but over time, profits drive the market.
- A strong correlation between stock prices and earnings
- Business in America is good.
To see more including the charts we mention in the podcast, visit: http://flemingwatson.com/earnings-matter/
September 9, 2019
In the investing world, things are often not as bad as they seem. The data doesn't always match the headlines.
Today we talk about:
- August was not good, but was it really bad? It felt really bad.
- The worst month for stocks (so far) this year is...
- Have we even had a correction in stocks yet?
- Don't look now, but the US stock market is having a really good year.
- So is everything else.
- The fourth quarter is the "money quarter" for the stock market.
To learn more and look at pretty pictures, visit: http://flemingwatson.com/not-as-bad-as-it-seems/
September 5, 2019
There has been a lot of attention lately about the more than $17 Trillion of debt with negative yields. Much of that is issued by foreign governments. But there is about a trillion dollars in corporate debt with negative yields
So does this mean you are paying these countries for the privilege to loan them money? Better yet, why would anyone buy these bonds with no return? We'll talk about it on today's episode.
Note: Monday Morning Money is also broadcast on our local radio station, WMOA (1490 AM and 101.3 FM) each Monday at 11:07.
August 14, 2019
Recent volatility in the stock market has many investors looking for "safety". Many turn to government bonds. But is now the right time to invest in these notes? Today we'll talk about the hidden risk in bonds.
Key Concept 1: Yield
When talking about bonds, the first key concept is yield. Yield is the return you will earn when you buy a bond. It factors in the current price, the interest rate, the date it matures, and the return of principal.
If you buy a bond with a 2% yield and hold it until maturity, that is the return you will realize.
Key Concept 2: The Relationship Between Yield and Price.
The second concept is the relationship between yield and price. Bond yields and bond prices are inversely related. This means when bond prices go up, yields go down. And when yields go up, prices go down.
Where is the Hidden Risk In Bonds?
Bond yields are near historic lows. And it is hard to imagine them going lower. When they increase, it could create a very difficult situation.
Those who buy these longer term notes will face two choices. The first is to accept a low rate of return over the next several years. The other option is to see the value of their investment decline as yields move higher.
If you would like to see an example of how rising yields impact bond prices, check our post at:
August 8, 2019
Investing in emerging technology sounds exciting. At least one of our listeners thought so. He submitted a question wondering how we could invest in the following areas:
- Artificial Intelligence
- Internet of Things
We'll share some ideas on this week's episode of What's Happening Now.
For a list of exchange traded funds which specialize in these emerging technologies, please visit the following link: http://flemingwatson.com/investing-in-emerging-technology/