History books are filled with examples of what can happen to investors under the direction of poor national governance. The real challenge is, once we are aware of poor governance, how do I respond as an investor?
Recent events have highlighted the potential for trouble in an investment portfolio. Commonly known as political risk, this may be any event triggered by a government’s executive, judicial or legislative decisions that has the potential to negatively affect the stock or bond holders of that country.
As international investing has become broader and more accessible to investors, these issues have become front-and-center questions for the average investor. A recent Economist article sought to quantify the impact of “bad governments” on that same nation’s investors, and cited some specific examples (Argentina, Iran, and Russia in this research) to study their impact relative to their global peers. Read the rest of this entry »
The relationship between supply and demand is widely understood in economics. But does an aging America mean future stock returns will be lower as older Americans sell stocks for day-to-day needs in retirement?
Most economists I’ve spoken with on the matter in recent years have expressed concern about this very dynamic. It’s also a rational, simple explanation for several things. But while supply and demand are still present forces, this thesis makes a number of implied assumptions. The foremost being that baby boomers will be the only supplier of savings (capital) to the productive businesses that need it (in the form of stock purchases in the primary/secondary markets). Read the rest of this entry »
What does the financial news media mean when they say, “brace for more market volatility”?
Over several decades in the investment business, I have consumed many thousands of hours of financial news from the likes of CNBC and Fox Business News. Over that same time period I have heard the term “market volatility” used ad nauseam by news anchors and Wall Street analysts in reference to every kind of investing situation. I would guess you have, too.
Here are several recent examples from a CNBC print article on their website Brace for More Market Volatility in the Second Half of 2013. http://cnbc.com/id/100848558
“Investors, buckle your seat belts. Markets in the second half could be driven by more volatility, though most strategists expect equities to ultimately end the year higher than their current levels.” Read the rest of this entry »
Last week I wrote about the importance of receiving advice from a professional without conflicts of interest– putting the client’s best interest first. Today I’d like to focus on the scenarios in this capacity that can save you money.
Without a Sales Commission…
When working with a financial planner that doesn’t earn a sales commission, their only form of compensation is the fee you pay for their service. There are several ways to pay, but the two most common are paying an hourly rate for service rendered or at an annual rate based on your net worth or investment balances. This is how clients pay for advice at Callahan Financial Planning.Read the rest of this entry »
Callahan Financial Planning has officially opened its doors! Please come visit us at our brand new office in Midtown Crossing. You’ll find a sales free environment and group of knowledgeable financial planning advocates looking out for your best interest. We’re open Monday – Friday, 9:00 am – 5:00 pm.