On the top 10 list of things to worry about, volatility is the 11th

On the top 10 list of things to worry about, volatility is the 11th

For the past several months, US stocks whipsawed with each presidential tweet about whether Trump is adding tariffs or suspending tariffs, talking to the Chinese or ordering US companies out of China. We’ve seen some days where the Dow fell over 800 points, which once upon a time was a big deal, but amounts to a decline of only 3% in a year when the S&P 500 is up 20.6%. When the Dow fell 508 points in October 1987, that was a decline of 22.6% in a day!

Recently a client called with a very serious concern. He intends retire soon, is worried that Trump will drive the country into recession next year, and wanted us to put all his assets into bonds and cash.

I gently reminded him of the value of working with our firm – coaching you to ignore noise and focus on facts. Sure, the day to day fluctuations SEEM dramatic. However, since January 1st, 2018, US stocks are up 14.3%, which works out to an annualized gain of 8.3% over the last 7 quarters – right in line with long term averages. For curiosity, we ran a study calculating the total return of the last 7 presidents from Inauguration day through the equivalent of 9/6/2019, so approximately 700 trading days per president.


What we see is that stocks generally go up regardless of who the president is, regardless of politics, and probably would go up even if my dog was the president.

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Heron Wealth Mid-Year Commentary & Panel Discussion with Liz Clayman - Asset.TV

Heron Wealth Mid-Year Commentary & Panel Discussion with Liz Clayman - Asset.TV

In June, US stocks reversed May’s 6.4% decline and rallied 7% to new all time highs, with the S&P 500 up 18.5% on the year. Half the gain is a reversal of the 5.0% decline in 2018, while the rest is a full year’s gain delivered in 6 months.

World markets in general are having a good year, and US bonds have rallied substantially since January. Full report here:

Regrettably, once again we have that “walking on thin ice” sensation, which we had prior to last fall’s near 20% correction.

David Edwards appeared on a panel discussion recently to discuss his outlook for the rest of the year.

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What You Need to Know About FAFSA (The Free Application for Federal Student Aid form)

What You Need to Know About FAFSA (The Free Application for Federal Student Aid form)

If you have a college bound high school senior in the house, here are some useful tips you should know about filling out the FAFSA form. The application for the 2019-2020 school year is now available as of October 1st. You can also use this estimating tool to get a sense of options without filling out the complete form.

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Q&A with David Edwards: How do I know if a stock is overvalued?

Q&A with David Edwards: How do I know if a stock is overvalued?

Question: To find the price-earnings ratio of a stock, I divide the current stock price with the last four quarters of earnings. If the current list price is higher than the number I get when I calculate the P/E ratio, what does that mean? Is the stock overvalued?

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Q&A with David Edwards: Does the Patriot Act require that personal investment accounts need to be disclosed before inheriting brokerage accounts?

Q&A with David Edwards: Does the Patriot Act require that personal investment accounts need to be disclosed before inheriting brokerage accounts?

Question: My mom recently passed away. She left myself and my siblings equal distributions from her brokerage accounts. Her financial advisor wants each of us to provide a detailed accounting of our current, personal investment accounts. He cites the need to comply with the Patriot Act. Does the Patriot Act require this?

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Five Finance Concepts A Savvy Investor Needs To Know

Five Finance Concepts A Savvy Investor Needs To Know

Not every investor is as savvy as they could be. Financial education is not taught in high school. In fact, it’s only taught to college students who proactively seek out to learn about this topic. A lack of knowledge can hurt your portfolio so read on for 5 key finance concepts you must know as a savvy investor.

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Q&A with David Edwards: How Can A Stay-At-Home Mom Generate Investment Income?

Q&A with David Edwards: How Can A Stay-At-Home Mom Generate Investment Income?

Question: I am a stay at home mom. Me and my husband have six children. My husband has a great job. However, I would like to generate some income without having to work outside the home. I have been learning about trading, I want to invest in the stock market. What is the best place to start?

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“Feathering” Our Portfolios: What Sailing Teaches Us About Investing

“Feathering” Our Portfolios: What Sailing Teaches Us About Investing

There are many similarities between sailing and investing. A lot has to do with preparation: it is much easier to manage unforeseen events by planning in advance. This will allow you to stay the course instead of reacting to the markets.

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