I’ve been listening to a lot of Wall Street “experts” saying that we’re stuck in a 2% growth rate due to demographics. The premise is the aging Baby Boomer generation is not consuming as much as they get older thus hurting growth of the economy because it is approximately 70% consumption. Sounds reasonable, doesn’t it?
New clients often ask me when the best time of the year to invest is. As you know, I think it’s not prudent to be focused on the short-term returns. That being said, I came across this chart which confirms what I’ve experienced through the years regarding market trends. Historically, the fourth quarter, followed by the first quarter, has seen the strongest markets.
I came across this fascinating chart and thought I would share it with you. Using the rule of 72, a simple calculation of how long it takes an investment to double, at today’s interest rates, it would take an amazing 46 years to double your investment in a treasury bond. How’s that for a retirement plan!
Just like you have a check-up at a doctor’s office, I thought it would be a good time to do a check-up on consumer finances. Since it is approximately two thirds of our economy, it is important to know if consumers are in good enough health to drive our economy higher.
I came across this chart, and I thought I would share it with my readers. The chart below shows rolling 10-year stock market returns (S&P500) and historical 10-year low returns. As this chart illustrates strong returns have followed historical lows. If history repeats itself that should be the case this time. Although there are no guarantees, I like our chances.
Einstein stated that the power of compounding was “the eighth wonder of the world” and I believe it.
The chart below particularly shows the difference in returns from the S&P500 when you reinvest dividends – it’s a huge difference.
I came across this chart and thought I would share it with my readers. As my long time clients know, one of the things I have always believed about successful investing is
“TO NOT FOLLOW THE HERD MENTALITY BUT EMPLOY CONTRARIAN THINKING”.