For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. While the events of the “lost decade” are now behind us, they can still serve as an important reminder for investors today.
It’s been approximately a decade since the Great Recession began. By year-end 2008, the U.S. Federal Reserve had lowered the target federal funds rate to near-zero hoping to resuscitate the economy. The Fed has now begun to reverse course, restoring its policies and gradually rising rates.As an investor, what can or should you do to prepare if rates do continue to rise? For that matter, what can or should you do if they don’t?
Several years ago, I started working with a business owner who managed 20 to 30 employees in the manufacturing industry. I worked with him individually on investment management, and every year he made contributions to his personal accounts. At first, we didn’t have any understanding of his business beyond a means of generating cash flow.
Overall market temperatures have been so mild for so long, many newer investors have yet to weather a perfect market storm. Even if you have, you may have forgotten how panic-inducing those times can be. This worries us. Experience and evidence alike show us how severely bear markets test investor resolve. Here are 10 timely actions you can take when financial markets are tanking … and, frankly, even when they’re not.
After nearly a decade of leaving the federal funds rate at zero percent, the time finally came on December 16, 2015. Since then, the Fed has made several modest increases. But what do these rate changes mean to your financial well-being? Is there anything you should “do” to your investment portfolio when they occur?
For a number of investors, 2017 was a paradox. The harder they tried to enhance their results by paying close attention to current events, the more likely they failed to capture the rate of return the capital markets offered. Keep informed on current events as a responsible citizen but let the capital markets decide where returns will be generated.
No matter how the 2017 Tax Cuts and Jobs Act (TCJA) may alter your tax planning, we’d like to believe one thing will remain the same: With or without a tax write-off, many Americans will still want to give generously to the charities of their choice.