Global Economic Indicators

 

 

 

Small Print: This is purely for educational purposes and does not constitute a recommendation to buy. As always, do your own research before making any decisions. The results below are year to date.

 

Global Stock Markets as of June 10, 2009. Percentage increase since 12/31/08 and market index. Data from The Economist.

 

Russia                  77.5%         1,218                    

Brazil                    70.5%       53,410

Indonesia             69.2%          2,108

India                     65.3%       15,466

Chile                     53.4%       15,406

 

Vanguard best performing stock mutual funds year to date:

Precious Metals and Mining        43.76%

Capital Value                                      41.29%

Emerging Markets                             39.73%

Capital Opportunity                         21.54%

Energy Fund                                       26.61%

 

Precious Metals as of June 15, 2009-from Kitco.com

                                Bid                          Ask

Gold                      928                         929

Silver                    14.02                     14.07

Platinum              1205                       1215

Palladium              241                         247

 

Interest rates being offered on 10 year Government Bonds as of 6/10-data from The New York Times.

China                     3.40%

France                   3.99%

Japan                    1.53%

Germany               3.67%

India                      7.35%

Britain                   3.91%

Russia                   10.24%

Hungary                10.15% 

Brazil                     6.16%

Greece                  5.51%

 

 Bon chance!

How to Put a Security Freeze on Your Credit

 

If you live in California, you now have the right to put a “security freeze” on your credit file. A security freeze means that your file cannot be shared with potential creditors. A security freeze can help prevent identity theft. Most businesses will not open credit accounts without first checking a consumer’s credit history. If your credit files are frozen, even someone who has your name and Social Security number would probably not be able to get credit in your name. This easy to follow ‘how to’ link includes sample letters specific to California residents as well as toll free numbers to all three credit reporting bureaus, Experian, Equifax and Trans Union.
View credit freeze information for CA.
Click here for information outside of California.

Financial Wellness

It’s hard to predict what the economy will look like two, five or ten years from now. It’s even harder to predict what the stock and bond markets will look like down the road. So with all that uncertainty, it’s better to focus on what you do have control over vs. what you have zero control over.

Abundance of Investment Choices

You may have noticed the vast amount of new products being churned out by Wall Street lately.  Now I’m all in favor of more options, yet the amount of new “products” being introduced to investors on a daily basis is staggering. Besides regular old fashioned mutual funds, stocks and bonds, we now have a slew of ETF’s, ETN’s,  ishares, global ETF’s, brand new sector funds, and the list goes on. The marketing departments of these large investment houses are well aware that investors like the shiny new objects in the window and as such are catering to our need for buying something new and exciting. Index funds, diversifying your portfolio is so 2008 they’ll tell you, come over here and play the new game…

Top 5

Below are some Top 5 listings that may be of interest to you. This is purely for educational purposes and does not constitute a recommendation to buy. As always, do your own research before making any decisions. The results below are year to date:

Top 5 Performing Vanguard Mutual Funds:

1)      Capital Value: 31%

2)      Emerging Markets Stock Index: 27%

3)      Precious Metals & Mining: 25%

4)      Energy Fund: 17%

5)      High Yield Corporate: 16%

Top 5 Performing Global Stock Markets:

1)      China: 52%

2)      Brazil: 51%

3)      Russia: 42%

4)      Indonesia: 39%

5)      Chile: 31%

Top 5 Performing Bear Funds:

1)      Direxion Financial Bear 3X: 73%

2)      ProShares UltraShort Financials: 73%

3)      Direxion Small Cap Bear 3X: 68%

4)      ProShares UltraShort Industrials: 66%

5)      ProShares UltraShort Real Estate: 58%

What to do…Buy, Sell, do nothing?

Is this a bear market rally we’re witnessing in the stock market or the beginning of a stock market recovery? Do I get back into the market now or wait a little longer? If I do get back in, what do I buy? These are just a few of the many questions I’ve been asked recently. After the recent drubbing we received from the stock market crash, these are not decisions to be made lightly. Here are some ideas on how best to proceed.

Doubling Down

I have an old friend that loves to gamble. His game is blackjack and he actually win’s quite often. He was a math and physics whiz in college and believes he has the advantage in any casino he enters. That said, he does have one particular old habit that causes him to lose and lose big at times. If he’s on a losing streak, he’ll keep doubling down in order to make up for the losses he has incurred. At times, I have watched him lose spectacular amounts of money with this strategy. So what does this have to do with financial planning and investing you ask; allow me to share with you what I see happening at the moment.

Planting Seeds of Prosperity

As I was asking a new client to describe her earliest memory around money, she started recalling how her parents dealt with money. She remembered how often they disagreed about managing their money, how often she remembers hearing her Dad say how “you kids are going to drive us into the poor house”. She grew up in Long Island and was raised in a Irish Catholic family with 9 kids. There was a constant sense of scarcity in her life and that feeling of never having enough stayed with her as adult and permeated her relationship with money in many ways that were unconscious. At the current age of 58, and by all intents and purposes, very well off financially, she still feels, after all these years, that if she’s not careful, she’ll wind up in the “poorhouse”.

Stay Vigilant

With the stock market finally showing us some love after a brutal 8-9 months of wild rollercoaster rides, it’s easy to slip into old habits and trick yourself into thinking the good old days are around the corner. As President Obama said today, there are glimmers of hope that the economy may be turning a corner. Add to the mix a general consensus form many leading economists that the recession may end in September and you have a positive outlook for the future.

The Buck Stops with You

With the recent stock market rally, it seems that people are starting to come out of hiding, or maybe out of shock is a better word, and assess the financial damage to their personal finances. I’ve noticed a steady increase in calls and emails from potential clients regarding financial planning. Most people have one thing on their mind-tell me how bad the damage is and how do I plan going forward.