Last week's Presidential election brought volatility to financial markets and the most damage was inflicted on the Mexican Peso. With threats of renegotiating NAFTA and taxing Mexicans citizens to pay for a border wall, the Mexican Peso dropped over 10% in one day and became the worst performing emerging market currency in 2016. While this is terrible if you live south of the border, it can mean great things if you are planning a vacation. Since last year, the Peso has fallen over 23% which means huge potential savings for American travelers! It's time to pack your bags and brush up on your Spanish because 2017 should provide money saving opportunities for the savviest travelers. Here are 3 tips on planning your future getaway.
The subject of investment advisory fees can be confusing. While researching online, I observed that it is difficult to find average fees published anywhere so I hope that you find this blog post helpful.
As we move past Election Day, financial markets should be able to refocus on what truly matters: company fundamentals. This should serve as a catalyst to push equity prices higher with earnings finally back on the rise. It has been a tough period for earnings because of the strength in the US Dollar and extreme volatility in crude oil prices. This trend appears to have finally stabilized. The energy sector is expected to post a flat quarter after posting huge losses for the previous four quarters.
Halloween has come and gone. My two witches and one Ghost Buster put in an impressive two hours of trick or treating in our neighborhood and have the candy to prove it. Yet, people are nervous. At least judging by the frequency of questions we're asked about the implications of the upcoming Presidential election, it's the two "ghouls" staring down November 8th that have investors more scared than in any other election of my lifetime. With less than a week to go before heading to the voting booths, here's a little data and perspective.
One of the most important decisions you have to make in your 401(k) plan is asset allocation -- that is, how much you put in stocks, bonds, and cash. Asset allocation is the strategy of dividing your investments across various asset classes in order to reduce risk through diversification. Here are two simple approaches to get you started.
Your 401(k) could make you a millionaire. By making small, regular investments starting in your 20s or early 30s, your savings will grow tax-free for 30 to 40 years. Unfortunately, people tend to procrastinate because they are focused on bills that are due today and the things they want right now. We human beings are notoriously bad at wrapping our minds around far off events.When it comes to investing, time is a big advantage. Here are three reasons why.
We have all seen pharmaceutical commercials on TV where a listing of common side effects may include diarrhea, nausea and drowsiness. In today's financial markets, central banks are expanding their balance sheets by trillions of dollars annually and new side effects are on the way. This week saw a new milestone in the world of negative interest rates, when Henkel and Sanofi became the first public companies to sell new Euro bonds for more than the buyers will get back.
When it comes to trying to reduce risk in your 401(k), the phrase "don't put your eggs in one basket" applies. Therefore when selecting investments, it's important to diversify.
Earlier this month, I was invited to make an appearance on CNBC's "The Closing Bell" to discuss the topic "Is this the end of a stock picker's market?" I enjoyed the lively debate with Ross Gerber and Evan Newmark. In case you missed it, click the video link below. Since one can only say so much in a 4 minute segment, I'd like to share some additional thoughts with our loyal Runnymede readers.
Many articles have been written about the shift from active to passive investing. The thesis is simple. The majority of active mutual fund managers underperform their index and also charge a higher fee. This is a double whammy for an investor's bottom line. Therefore, the solution seems simple: move your money into low cost index funds and that should lead to higher returns over the long term. Unfortunately, it's not that easy. Let's take a look at the potential pitfalls of passive investing.
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