MSFT is being punished again today....for no real reason. BUT....their earnings are going to happen soon.....and hopefully great results will stop the recent disrespect that I am seeing for this company and stock. And.....BONUS....as I have been reading and typing I see that the SP500 is now in the green. NOW.....lets work on pushing the NASDAQ to follow along into the green by the close today. It will take some tech stock...."reality"....to get the NASDAQ there.
A personal note.....my son and his spouse...just become small busines owners. He works for a major insurance company as a Senior Director......she is a financial advisor. They just purchased the company that she works for.......financing $3MILLION to do the purchase. Her boss wanted to sell and retire....and was willing to personally do the financing of the sale..... and she has been the Managing Director of the company, and primary rain-maker...... for some time now....so it worked out very nicely. I rarely ever talk investing with them....since she is in the business and when you are off work the last thing you want to talk about is.....work. But....as an advisor their company emphasizes the long term and operates as a FIDUCIARY......with their clients. They require a minimum of $500,000 to $1,000,000...to take on a client. I expect that the business will continue to do well and will take off from here. Their goal......to grow the....."value of the business"..... to $10MILLION to $15MILLION over the next ten years.
I watched that "Hired Gun"....TireSmoke. Pretty good documentary.......and accurate in general......although different types of music (mostly metal and pop)....than what I do. I just this morning got an email about a new music project......inviting me to rehearse. So....I will be starting out next week with them. I know the guitar/front-man, and bass player that are involved....but have never played in a band with either of them....although we have played together in various jams and little events in the past. I think it has good potential.....and...that is what I look for in any music project....long term potential. At least it will be something new.
A salute to the Mutual Fund....and I will also add....ETF's. probably the most common investment vehicle in the USA. The Next Century Depends On Mutual Funds https://www.realclearmarkets.com/ar..._century_depends_on_mutual_funds_1086496.html (BOLD is my opinion OR what I consider important content) "While 2024 was a year of notable events, it also marks a significant milestone in the financial world: the 100th anniversary of the mutual fund. Mutual funds were born in 1924 with the Massachusetts Investors’ Trust, a groundbreaking effort to bring the benefits of investing to ordinary Americans. Fast forward a century, and mutual funds have transformed the financial landscape, becoming a cornerstone of savings and investment for roughly 120 million Americans. Congress has the unique opportunity to strengthen mutual funds further, ensuring a secure retirement is within reach for every American. Even in the past year, mutual funds have shown their enduring appeal, with 2.3 million Americans opening new accounts. What was once the exclusive privilege of the wealthy – roughly 4 million Americans owned stock in 1900 – is now widely available. Thanks to low expense ratios and access to modern technology, mutual funds have never been more approachable for first-time investors and those looking to save for retirement. Nowhere is the impact of mutual funds more profound than in retirement savings. A staggering 87% of mutual fund investors cite retirement as their primary savings goal through their 401(k)s, highlighting the critical role these funds play in helping Americans secure their futures. Our 401(k) retirement system is working on overtime. Retirement assets per household are more than seven times what they were 50 years ago. From 2013 to 2022, retirement assets increased by $4.4 trillion or 13.3%, peaking at $44.3 trillion in 2021. By pooling resources and offering diversified investment opportunities, mutual funds enable millions to build the financial stability they need for a comfortable and dignified retirement. For millions of middle-class households, they’re an essential part of pursuing the American Dream. It’s no wonder the Employee Benefit Research Institute’s (EBRI) annual Retirement Confidence Survey found Americans in 2021 have near-record-high confidence in having enough money to live comfortably through retirement. In recent years, the mutual fund industry has also cultivated a diverse marketplace of investors. Around 40% of households who purchased their first mutual funds in the last five years are people of color – more than double the percentage from prior decades. Younger generations, too, are entering the fold, with 35% of Gen Z households now holding mutual funds. This diversity underscores how mutual funds have broadened financial inclusion, empowering individuals from all walks of life. Beyond individual households, mutual funds are also a driving force behind America’s economic success. They provide the capital that fuels business expansion, job creation, and innovation, turning entrepreneurial dreams into reality. They’re responsible for injecting over $30 trillion into financial markets, playing a pivotal role in making the last century one of unparalleled economic dynamism. This financial vitality extends to new investment products like exchange-traded funds (ETFs) and collective investment trusts (CITs) – all of which owe their existence to the ecosystem created by mutual funds. These innovations continue to offer Americans diverse pathways to participate in the economy’s growth. As we commemorate the centennial of mutual funds, it’s worth reflecting on how these financial instruments have not only reshaped markets but made financial aspirations attainable for millions. They’ve enabled generations to build wealth, invest in their futures, and reap the rewards of a thriving economy. But their story is far from over. The incoming Administration and a new Congress have a unique opportunity to build on this legacy and ensure the next century remains economically vibrant. By promoting policies that protect and expand access to mutual funds and 401(k)s, lawmakers can ensure these tools remain a bedrock of financial security for years to come. One hundred years ago, mutual funds were a revolutionary idea. Today, they are a testament to the power of innovation and inclusion in shaping a better future. Let’s celebrate their contributions and recommit to policies that empower Americans to invest in themselves and their country. " MY COMMENT YES....an amazing product.
It's very unusual for people in post-communist countries to invest in stocks, especially in foreign markets. It's changing slowly with an advance of technology and broker commisions being so cheap today, but still unknown area for majority of people. Since a silent generation and baby boomers managed to build and buy cheap real estate, during communist era, RE remained predominant investing vehicle even for younger generations. So for example, 90% of people in Croatia own RE, only 10% rents. In addition to that, there is no CGT after 2 years of owning a property. The same CGT relief applies for stocks.
Thanks Strathmore....interesting stuff. I had no idea RE was so big of an asset in Croatia and probably surrounding countries. Compared to the USA that 90% figure is amazing. You guys have a way better Capital Gains Tax than we do....how nice. Thanks...in real life....I have no ability to talk to foreign based investors.
I see that the markets especially the NASDAQ has made a good come-back as the day progresses toward the close. I think I have my smallest loss of the day right now. AND....that is in spite of only having three stocks in the green. With these moderate losses in six of my stocks.....I have good potential to end the day with an IRRELEVANT loss. Not quite flat....but close enough.
I dont consider this a good thing. Basically the end of HON as we have known it for a long time. In the end it seems like many of these....."creating shareholder value schemes".....do not end up creating a larger and more dominant company. About all they seem to do is eliminate an ICONIC company and replace it will a bunch of smaller niche companies that have far less staying power to weather business events. But....since I am no longer a HON shareholder.....what do I care. This company has been on a bad path for a long time now. that is why I got rid of it some years ago. Honeywell CEO: We're relooking at our businesses https://finance.yahoo.com/news/honeywell-ceo-were-relooking-at-our-businesses-193536877.html "At a time when industrial conglomerates with economy of scale are no longer rewarded with high valuations, Kapur said in October 2024 that Honeywell would spin off its advanced material business. The new pubic company is slated to begin trading at the end of 2025 or early 2026. It boasts about $3.8 billion in annual revenue. Apparently, that maneuver and promises of more weren't good enough for the activist community. Honeywell is reportedly planning to split into two independent publicly traded entities. One business would house Honeywell's automation division and the other its aerospace business. No formal announcement has been reached. This follows Honeywell saying in December it would explore the spin-off of its aerospace business." MY COMMENT The "activist community"....basically the modern version of corporate raiders. It is pretty sorry that....."economy of scale"...in a business is no longer valued. it is all about the quick buck for the....activists and often the company management. When company management starts to buckle under and play these sorts of games with the...usually very MINOR "activists"....it is time for me to get out of that business. As to HON stock......a gain of +27%...in FIVE YEARS. Yes, five years....what a joke. I guess it is a question of....it it the chicken or the egg. When management becomes focused on breaking up an iconic company .....are the dismal results why it needs to be broken up.....or....is management screwing around with breaking up the company........the real reason for the dismal results....which are than used to justify splitting up the company.
WOW.......DOUBLE WOW.....BOOM......that was a massive turn around in the markets in the last 15 minutes of the day. fifteen minutes ago I was in the RED. NOW.....I have closed out the day with a nice....small but solid gain. In the last 15 minutes....AMZN, MSFT, and NVDA....all turned green. I went from three stocks green to six stocks green. i did get beat by the SP500 today by.....0.28%...but I ended the day at a daily high. I will definately take it....I actually made some money today. I also assume that this is a very strong indicator for the markets tomorrow. I assume some of this is political since number of cabinet nominees are now looking good for confirmation.
Here is the financial media take. S&P 500 closes at a new record, Dow jumps 400 points as Trump pushes for low rates, oil https://www.cnbc.com/2025/01/22/stock-market-today-live-updates.html (BOLD is my opinion OR what I consider important content) "The S&P 500 rose to record highs once again on Thursday after President Donald Trump called for lower interest rates and cheaper oil prices. The broad market index added 0.5%, notching an all-time intraday high for the second straight session. The Dow Jones industrial Average advanced 408 points, 0.9%, on pace for its fourth straight winning day. The Nasdaq Composite advanced 0.2%. Stocks took a modest leg up after Trump said Thursday in a virtual address to the World Economic Forum that he would “demand that interest rates drop immediately.” The president also said he would ask Saudi Arabia to lower the price of oil, which pulled crude into the red. Short-term Treasury yields fell following Trump’s comments. The stock market has gotten a boost this week from excitement about potential tax cuts and deregulation under President Donald Trump, as well as signs of resilient economic growth. While tariffs remain an overhang, investors have been pleased with the lack of formal action on these levies during Trump’s first days back in the White House. “He really can’t control interest rates, but the market likes to hear that kind of stuff,” said Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. “So far, the market does seem to like what Trump’s policies are going to be, so we’ll just have to see if there’s some follow through.” The fourth-quarter earnings season is also off to a strong start, with Netflix and big banks offering positive reports. But American Airlines poured some cold water on that enthusiasm, with the stock tumbling more than 8% on Thursday after the company issued weak guidance." MY COMMENT Although...I am not sure about this excuse for the markets in the last 15 minutes of the day....since these remarks were made this morning. WHATEVER....I will take it. another green day all the way around and a new....ALL TIME HIGH....for the good old SP500.....BOOM.
I continue to.....ENDURE.....the new and recent all time highs in the markets. I say ENDURE because that is what you have to do in the good times.....and...the bad times. In the good times.....you have to not get all carried away and do something stupid. Stay the course.....and....ride the wave. "You've got to dance with the one that brung ya" ......or as Shania Twain would say....."Dance with the one that brought you".
Hey, W, I don't mind at all. I'm 44 years old. I work as an Operations Manager for a medium-sized engineering company. I consider myself very lucky as I really enjoy my job. I live in a small town in a rural area, and good jobs are hard to come by. I've worked here since I was 28. Yes, you are right! It's insane. I've looked at the details and the investments look really quite poor. Its biggest holding is Astrazeneca!! I'm hoping to move it soon but I'm told it's not so simple. I would just like a nice safe investment for my pension, something like the S&P would be perfect as W said.
I have just had another look at my pension statement. It wasn't a 65% drop, it was actually a 48% drop. Still awful, but not quite as bad as I made out.
I would find out who is in control of the pension. They should be releasing yearly reports with the holdings and performance. For the biggest holding to be a British Pharmaceutical company is very concerning. The 5 year return is only 39.2%! The S&P500 5 year return is 86.6%! I agree with W, the only companies I will invest in are US based.
Lori's post had me thinking back to when I restructured my 401K to be S&P 500 based, nearly completely except for a small % of company stock. I used to be about half into a Blackrock target date fund. In theory, especially starting off right out of school the target fund made sense as far as a dump money into it every pay for your entire career and not worry about it. In hindsight it is genius marketing because the majority of people aren't investors but do know about what age they would like to retire. The fund rebalances and gets more conservative as you get closer to your retirement date. The problem? HIGH FEES AND IT UNDERPERFORMS THE MARKET! The only person with your best interest in mind is YOU. Wealth is hard to generate and even harder to keep. The system is set up in a way to nibble away at your wealth. Look into what fee's you are paying and how to minimize them. At your age, even a fraction of a % equates to a sizeable amount over the next 20 years. Also look into your tax situation now and where you plan to be in retirement. I am an engineer as well and make decent money but due to investing and the beauty of compounding I will have a much larger yearly income in retirement than I do now so investing in a ROTH (post tax) account makes more sense from a tax standpoint. I think alot of people could benefit from a 1 time consultation with a good financial advisor. I just wouldn't do any long term deals or you will just have one more person chiseling away at your wealth.
Some good posts. The retirement investment discussion regarding how they are set up and what one has available is always a risky deal at times. There are many here in the US that really do not receive much guidance on the type of investments they can choose or what they are. Many must do that research on their own. There are also many that can do well with their research, while others just simply "pick" something. As TireSmoke mentioned, fees and what might be available is something to watch closely. I think a lot of this has gotten better and cheaper over the years, but it is vital to dig into it and know what it is about. I am still amazed how many are willing to give up almost a third of their wealth to someone just in fees. It is usually even more and underperformance. Fortunately, I manage my own investments, but I also have a nice pension in the oven as well. I still read through the many pages of reports and financial info regarding the pension, although I really can't control the actual investments. Of course they are managing all of that money broadly for the fund. Even with the pension, I felt long ago the need to start my own investment/retirement plan as a safety measure....cause you just never know. The pension is very well funded and has been managed well for many, many years. I still like to have a back-up plan. I hope Lori is able to figure out that employer plan. When I read her post....I like to fell over. You are doing the good thing Lori by investigating and exploring your options. Many never do this.
It is a good start to the day today. I see from the ticker that I have only three stocks down today and the one that counts NVDA is positive....at the moment. I also see that I got really lucky with my timing on the new PLTR shares in my daughters account the other day....up by 6.22% in two days. pretty irrelevant since short term....but I will take it and have a bit of a cushion in those shares to start with.
Thank you Lori. You are in very good shape at age 44. You have at least 16-20 years ahead of you till retirement and plenty of years to compound your money. I can see why you are a sharp investor.....operations manager is the type of job that requires discipline and good ability to manage and run things. ALL good skills for any long term thinker and long term investor. In England....are SP500 Index Funds available for retirement vehicles like yours at work? How does your retirement account work....is it like a 401K in the USA? Or is it more like a traditional pension? Government mandated...I assume?
As to what TireSmoke said: Personally I hate Target Date Funds and would never use one. BUT...that is just me. It has been a while but the last time I did a deep analysis of them....just out of curiosity....I was shocked by the high percentage of bonds they held even for people at young ages. I thought it was way out of line and a return killer. The fees were also high and the returns were not good at all by my standards. I stand by my personal favorite for retirement accounts.....everything in a simple SP500 ETF for life.
Good news if you have your house listed for sale. US existing home sales rise to 10-month high in December https://finance.yahoo.com/news/us-existing-home-sales-rise-150754700.html Still a slight sellers market in most areas. Mortgage rates settling into the normal historic range in the mid 6% area. Inventory still low by historic levels. Moving toward a NORMAL housing market. Home prices and values increasing. We had a home come on the market in my little neighborhood yesterday. Not identical but extremely similar to our home in square footage, number of beds and baths and finishes. Basically a variation of our home. It is listed at $1.5MILLION. I hope it sells quickly.
