Managing Associate K.C. Smith, CFP® and Senior Associate Jarrett McKenzie, CFP®, CWS®, bring to the table a conversation on whether investors should really want to beat the market. They discuss risk exposure, long-term strategies and passive vs. active investing.
The markets kicked off the week by closing in the red zone on Monday. Corporate earnings likely drove some of the bigger moves of the day. The next day, the indices landed in green territory, as the Dow Jones Industrial Average maintained gains while the NASDAQ closed at a new record high. Technology brands led Dow advancers while energy stocks traded lower on slipping oil. Mid-week saw Financial stocks pressuring the Dow. It’s likely investors are still awaiting policy changes; however, some analysts believe investors have been weighing recent improvements in earnings and economic data to concerns about an uncertain political landscape. The markets closed at record levels on Thursday with Financial and Energy stocks leading the advance. In other news, initial jobless claims decreased last week, as Department of Labor data showed new claims declined by 12,000 to 234,000 versus an expected 250,000 claims. The week closed with indices at record high levels on Friday as Energy, Materials and Industrials stocks boosted the S&P 500 index. Meanwhile, consumer confidence is on the wane so far this month. In a preliminary reading, the University of Michigan’s consumer sentiment index hit 95.7, versus expectations of 98.5.
The “Money Talks” hosts address a listener’s question on health spending accounts and whether opening one would be a good idea if you’re covered by a high-deductible insurance plan. The experts also provided their opinions on some of Vanguard’s health care funds and if investors should seek actively or passively managed funds.
This week on “Money Talks,” Troy Harmon, CFA, CVA, is joined by Principal Jennifer J. Thomas, CFP®, and Senior Associate Jarrett McKenzie, CFP®, CWS®, to discuss the significance of the Dow reaching the 20,000 benchmark. They also talk about sector earnings performance, new and existing home sales and the Semi book-to-bill ratio. Jarrett and Jennifer lead a discussion on how 401(k) allocations can get “out of whack” even if you’ve been following your adviser’s recommendations. The experts also discuss a listeners’ question on prepaying his mortgage versus investing in a Roth IRA.
Principal Jennifer J. Thomas, CFP®, and Senior Associate Jarrett McKenzie, CFP®, CWS®, lead a discussion on how 401(k) allocations can get “out of whack” even if you’ve been following your adviser’s recommendations.
Indices closed in the red zone on Monday, likely a result of President Trump’s comments that he would “shake up” trade, taxes and regulations. The market indices closed with gains on Tuesday, with the Dow Jones Industrial Average climbing back toward the 20,000 mark while the S&P 500 and NASDAQ both ended trading at new record levels. By mid-week, the Dow hit an all-time high, closing above the 20,000 mark. The S&P 500 and NASDAQ also ended the session at record levels. Crude oil slipped on a jump in inventories, as reserves increased by 2.8 million barrels last week versus expectations of a lesser uptick of 300,000 barrels. The market ended trading with mixed moves on Thursday. The Dow landed above the 20,000 mark again while the S&P 500 and NASDAQ shed some points. In other items, new home sales decreased in December as sales slipped by 10.4% last month to a rate of 536,000 versus expectations of 595,000. Additionally, initial jobless claims ticked up last week. Department of Labor figures showed new claims increased by 22,000 to 259,000 versus expectations of a lesser gain of 246,000. The market ended Friday mixed, but were up across the board for the week. The Dow and S&P 500 shed some points while the NASDAQ added marginal gains on Friday. Energy brands retreated on a dip in crude oil prices. Gross domestic product numbers failed to inspire the session when Commerce Department data showed GDP rose at an annual rate of 1.9% in the fourth quarter. The results were down from 3.5% growth in the third quarter. Looking elsewhere, consumer confidence ticked up in January. A final reading showed sentiment hit 98.5 this month, up from a preliminary estimate of 98.1, and well beyond expectations for the reading to remain unchanged.
The “Money Talks” experts discuss a listeners’ question on prepaying his mortgage to pay it off within 15 years or should he invest the extra money in a Roth IRA.
This week on “Money Talks,” Troy Harmon, CFA, CVA, is joined by Principal Jennifer J. Thomas, CFP®, and Tax Manager Dan DiLuzio, C.P.A., to discuss inflation indicators, the Producer Price and Consumer Price indices, retail sales, and consumer sentiment. Dan leads the show’s case study conversation on what files individuals need to keep when it comes to financial receipts and statements. He also discusses how to dispose of files and offers tips on the best way to store important documents. The experts also answer listeners’ questions about veterinary drug maker Zoetis and medical equipment provider Henry Schein. They also explain the tax benefits behind saving to your retirement plans.
Tax Manager Dan DiLuzio, C.P.A., leads the show’s case study conversation on what files individuals need to keep when it comes to financial receipts and statements. He also discusses how to dispose of files and offers tips on the best way to store important documents.
For most of last week, the market was fairly lackluster. While the U.S. markets were closed Monday in honor of Martin Luther King Jr., the British pound dropped to a three-month low, which led to a decline in the FTSE 100 and Stoxx 600 in Europe. On Tuesday, investors were cautious ahead of President-elect Donald Trump’s inauguration—a bit of a reversal of the market’s movements since the November election. By midweek, the indices closed with mixed results. The Dow Jones Industrial Average traded slightly lower while the S&P 500 Index and NASDAQ posted gains. The mixed moves were likely prompted by Federal Reserve comments at San Francisco’s Commonwealth Club, as Federal Reserve Chairwoman Janet Yellen said a few interest rate hikes per year may be likely through the end of 2019. The markets ended in red territory on Thursday, with stocks trading lower ahead of the presidential inauguration. In housing news, housing starts ticked up in December, as new construction numbers rose to an annual rate of 1.226 million versus expectations of 1.188 million. Indices traded into green territory on Friday with equities rallying on Inauguration Day, recouping most of the value lost earlier in the week. Nevertheless, the NASDAQ and the Large-Cap Dow and S&P 500 each ended the week in the red compared to the prior week.