Trending
1. What Does a Second Trump Term Mean for the Markets?
In this post-election edition of the What Does It Mean podcast, Lindsey Bell, Bob Lang, and Chris Versace discuss the market's immediate and future predicted reactions to the recent election where former President Trump has regained the White House and the Republicans have taken back the Senate. — What Does It Mean?
2. Three Analogies To Use in Volatile Markets
Obviously, the stock market’s volatile and you’re going to encounter volatility your entire career. It’s the normal part of the market. Even though volatility is normal, it makes clients very nervous. Fear is a bigger emotion than greed. One of the challenges for you in volatile markets is that clients can slip into a behavior called anchoring. When clients give you a specific amount of money, that becomes the anchor amount of their portfolio. They refer back to that initial amount when evaluating any ups and down in value. Let’s say hypothetically that a $100,000 portfolio falls in value to $90.000. Right away, they think to themselves, “Oh, it’s broken.” Something’s wrong.” — Don Connelly
3. Investing in America: Thriving Beyond Election Results
The USA will have a new president-elect, likely by this time next week. While this has driven high anxiety across television displays, the internet, and dinner tables, the markets have remained remarkably calm, exiting October essentially where it began. Surprise! For investors, this should act as a true reveal. Private sector activity matters more than presidential activity. US GDP grew 2.7% last quarter. S&P 500 earnings grew 5%+. Neither show signs of slowing. Regardless of who wins The White House, those invested in US companies will continue winning as long as Americans remain dynamic, industrious, and innovative. That’s a bet worth making, and is historically rewarded—no matter who occupies 1600 Pennsylvania Ave. — David Waddell
4. Is $500 Billion in Annuity Sales on the Horizon?
LIMRA recently reported that total U.S. annuity sales climbed to a record $216.6 billion during the first half of 2024, up 20% from the previous year.1 Not surprisingly, after hearing this stat, I witnessed a positive mood from the attendees associated with the annuity industry at the recently concluded LIMRA Annual Conference in Nashville. — Scott Stoltz
5. How Google Dies
Remember life before Google (GOOG)? Me neither. My whole adult life, any time I needed to know anything—a recipe, a fact, directions—I “Googled” it, just like billions of other people. Google controls 90% of the search market. By selling targeted advertising to its billions of users, it arguably became the greatest business in history. Google makes so much money, it’s able to outspend all other companies on R&D… incubate “moonshots” like self-driving cars (Waymo)… make big acquisitions (YouTube)… carry a bloated staff… and still have plenty left for fat 30% profit margins. — Stephen McBride
6. Why Americans Aren't Feeling the Benefits of a Strong Economy
If the U.S. economy were a pop star, it might be peak Taylor Swift. On nearly every major measure of economic health, the economy is in great shape and far ahead of its developed market peers. Real GDP is growing solidly, inflation is approaching the Fed’s 2% target and job growth has been robust even with a sub-4.5% unemployment rate for the last 3 years. — Stephanie Aliaga
7. Betting Against America Has Never Been a Winning Strategy
In his 2022 Berkshire Hathaway shareholder letter, Warren Buffett wrote that in his 80 years of investing, he had “yet to see a time when it made sense to make a long-term bet against America.” Buffett’s words have rarely been more relevant. With today's presidential election, history shows that regardless of who’s in power, the U.S. has consistently outperformed its global peers and rewarded those who stayed the course. — Frank Holmes
8. Navigating Earnings Season: A Tale of Three Companies
Every earnings season, there is something odd that emerges. This time around one of the most intriguing is the difference in fortunes seen by companies that are supposed to be sensitive to the interest rate environment. From autos to housing to recreational vehicles, different sectors enjoyed different tailwinds during the COVID recovery. Some are seeing their fortunes reverse. Others are riding surprising shifts in sentiment, challenging the perceived weakness in the economy or their specific end markets. — Samuel Rines
9. The Election Is Over. Here’s What to Focus on Next
Save for some House and Senate races that have yet to be called at the time of this writing, the 2024 election season can now be put to rest. For many advisors, clients and investors, the sentiment is “good riddance” and understandably so. Sure, there’s no denying that equities like the results of the presidential contest. The S&P 500 gained 2.53% on Wednesday. Bonds, not so much. Ten-year Treasury yields rose 3.19% in the first post-election trading day. One day of price action doesn’t necessarily mark the beginning of a new trend and it pays to remind clients of that fact. — Todd Shriber
10. Do Clients Wonder Why Everyone Else Can Spend So Much?
Your clients are doing well for themselves. The reason is obvious. They have enough assets to have an individual financial advisor. When you look around and see products advertised, many clients cannot afford them! They wonder who are all these people with all this money? — Bryce Sanders
11. How the Start of the Fed Rate Cut Cycle Could Impact Investors
History shows cash yields decline rapidly following the start of cutting cycles, falling by 2% on average just twelve months later. U.S. stocks have delivered a positive return of 7.2% one year after the initial cut, though depending on whether the economy avoids a recession or not within that year has led to starkly different results (+19.6% vs. –2.7%). As of today, the economy shows no signs of an imminent recession, but this has the potential to change. However, as illustrated by longer-term returns, regardless of where the economy lands this cycle, patient investors should not be deterred from confidently staying the course. — Lincoln Financial Group