Investing Wisdom: Why Rebalancing Your Portfolio Is Crucial

2024-08-02

Economist Claudia Sahm developed the “Sahm Rule,” which states that the economy is in recession when the unemployment rate’s three-month average is a half percentage point above its 12-month low. As shown, the latest employment report has triggered that indicator.

So, does this mean a recession is imminent? Maybe. However, we can now add this indicator to the long list of other recessionary indicators, also flashing warning signs.

As discussed in “Conference Board Scraps Its Recession Call,” the Leading Economic Index (LEI) has a long history of accurately predicting recession outcomes. As we showed, each previous decline in the 6-month rate of change in the LEI from the Conference Board has aligned with a recession. We are currently in one of the most extended periods on record

2024-07-30

Earnings season continues with 39% of S&P reporting this week; by week’s end, 79% of companies will have shared results…and the buy back window opens anew. The Fed meeting begins today, with a slim chance for a surprise rate cut; a more dovish tone will encourage markets, however, and anticipate rate cut by September. Commentary on markets’ 3% correction & Japanese Yen carry trade effects. Addressing the correct response to correction: Average returns are not the norm; risk on/off behaviors. Anchoring life events: What’s the best anchoring for portfolios? Lance and Jon discuss a common mistake investors make when evaluating their portfolio performance, and explains why comparing your returns to the overall market is not always the best approach: The worst thing investors do is compare

2024-07-26

Rich & Danny recap Danny’s recent accident; Rich’s market summary includes a preview of today’s PCE release. Markets are awaiting confirmation of a trend. Dealing with the election fallout on your money; markets have already priced-in everything you know. PCE will move markets today; there is still $500-billion in unspent government funds from the Inflation Reduction Act. Dealing with data breaches. Retirees’ biggest worry is about income: What is the biggest source of income for most Americans? Their house & home equity…and SS, a forced pension. Benefits of a HELOC–get one early, and don’t touch it. The best use of "buffer assets." Thinking of HELOC’s and reverse mortgages as "unfreezing" liquidity in the frozen asset of your home. Retiremnent is about depleting assets; you’re no

2024-05-23

All eyes are on NVDIA’s quarterly report: Why did we trim our position? How might this company disappoint investors? It’s all about the guidance. FOMC Meeting Minutes also could trigger markets, based on what they reveal about the Fed’s interest rate intentions. Markets are at all-time highs, trading in a tighter range. Markets have gone 315-days without a 2% correction; we think they’re primed for a pullback. Lance’s wife is home; hilarity ensues. Millennials’ ‘quiet vacation’ ploys. Is recession coming? Most investors and economists think not. (We are still within the window of opportunity following yield curve inversion). Trying to eliminate recession from the business cycle; why recessions are needed. American’s favorite investments vs Mattress Mac’s investment philosophy. Where Dave

2024-05-17

When you have a high-earning husband and a wife who never worked, the husband should claim his benefit at FRA, not age 70. The rationale—assuming both spouses are the same age—is that if he waits until age 70 to claim his benefit, she must also wait until she is 70 to claim her spousal benefit.

Hosted by RIA Advisors Director of Financial Planning, Richard Rosso, CFP, w Senior Advisor, Dany Ratliff, CFP
Produced by Brent Clanton, Executive Producer
——-
Articles mentioned in this report:
"Stimulus Today Costs Dearly Tomorrow"
https://realinvestmentadvice.com/stimulus-today-costs-dearly-tomorrow/
"Moving Average Crossovers Suggest The Bull Is Back"
https://realinvestmentadvice.com/moving-average-crossovers-suggest-the-bull-is-back/
"Equities Bounce Back Ending The April Correction"

2024-05-16

Let’s weigh both sides for an even balance. Discussing negatives and positives, economic data, and market trends is crucial for understanding the full picture. #balancedviewpoints

Lance Roberts dives into the essentials of balancing perspectives for market success. Gain insights on navigating both positive and negative market indicators effectively.

– Importance of weighing both sides of market perspectives
– Discussion on negative economic data
– Analysis of positive market trends
– Maintaining an even balance in market understanding
– Emphasis on paying attention to market activities

➢ Listen daily on Apple Podcasts:
https://podcasts.apple.com/us/podcast/the-real-investment-show-podcast/id1271435757

➢ Watch Live Mon-Fri, 6a-7a Central on our Youtube Channel:

2024-05-09

Did you know that all the earnings growth in the S&P 500 is mainly driven by just seven stocks? Check out the eye-opening chart shared on Twitter this morning. #StockMarket #EarningsGrowth

Join Lance Roberts as he jumps into the intriguing world of earnings growth among top stocks. Discover how the performance of just a few companies is shaping the overall market landscape.
– Explore the impact of the "magnificent seven" stocks on overall earnings growth.
– Understanding the true state of earnings growth since Q4 2022.
– Identifying the seven stocks driving market earnings.
– Analyzing the consequences of removing top performers from financial calculations.
– Insights into the overall health of the stock market without its top earners.

➢ Listen daily on Apple Podcasts:

2024-05-06

Strong economic growth in the 60s and 70s led to higher inflation rates. Current data doesn’t show stagflation, but concerns persist. GDP fell to 1.6 on a real basis. #EconomicInsights #Inflation #GDP

Description: Join Lance Roberts as he delves into the complex relationship between economic growth and inflation. Understand the current economic dynamics and dispel the myths surrounding stagflation.
– Explanation of how inflation correlates with economic growth
– Analysis of current economic data to assess the presence of stagflation
– Discussion on public concern and media coverage of stagflation
– Insights into the impact of GDP and PCE price index figures
– Evaluation of investment strategies in relation to economic conditions

➢ Listen daily on Apple Podcasts: