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The Markets We’re off to a slow start. December is usually the best month of the year for the stock market. It has been since 1950, according to Randall Forsyth of Barron’s, but not so far this year. Two issues made investors particularly uncomfortable last week which helped trigger a sell-off that pushed major U.S. stock indices lower.
Historically, these maturities have inverted seven times. In one instance, the country was already in recession. On the other six occasions, recession didn’t occur for more than two years. Barron’s reported the Standard & Poor’s 500 Index gained an average of 20 percent over the 24-month periods following these inversions. Investors’ negative response to last week’s news may have been overdone. Financial Times reported European and Asian markets firmed up a bit Friday “…as buyers stepped back in after some savage falls on Thursday.” about time and money. Elizabeth Dunn, associate psychology professor at the University of British Columbia in Vancouver, Canada, and Michael Norton, associate marketing professor at Harvard Business School, have been studying whether people should spend money differently. Their goal is to figure out how to get the most happiness for the dollars spent. In Happy Money: The Science of Happier Spending, they explained their experiments:
“…We started doling out money to strangers. But there was a catch: rather than letting them spend it however they wanted, we made them spend it how we wanted…changing the way people spent their money altered their happiness over the course of the day. And we saw this effect even when people spent as little as $5…Shifting from buying stuff to buying experiences, and from spending on yourself to spending on others, can have a dramatic impact on happiness.” In addition, buying time can improve happiness. How do you buy time? By paying someone else to do tasks you don’t like to do – cleaning, grocery shopping, home maintenance, and other tasks. This can relieve time pressure and free up time to do what you really want to do – and that can make you happier. The authors suggest individuals ask a simple question before making any purchase: How will this purchase change the way I use my time? Make sure the answer aligns with the goal of having an abundance of time. Weekly Focus – Think About It “Happiness is when what you think, what you say, and what you do are in harmony.” --Mahatma Gandhi, Leader of Indian independence movement Securities offered through Mutual Securities, Inc., Member FINRA/SIPC. Supervisory office located at 3140 Windsor Ct., Elkhart, IN 46514. Investment Advisory services offered through Guidance Investment Advisors, LLC, doing business as Guidance Wealth, LLC, a registered investment adviser registered with the Securities and Exchange Commission. Guidance Investment Advisors, LLC and Guidance Wealth, LLC are not affiliated with Mutual Securities, Inc. Sources: https://www.barrons.com/articles/the-latest-jobs-report-will-tie-the-feds-hands-next-year-1544208693?mod=hp_DAY_1 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/12-10-18_Barrons-Its_the_Stock_Market_Stupid-Footnote_1.pdf) https://www.economist.com/finance-and-economics/2018/12/08/a-trade-truce-between-america-and-china-is-over-as-soon-as-it-began (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/12-10-18_TheEconomist-A_Trade_Truce_Between_America_and_China_is_Over_as_Soon_as_it_Began-Footnote_2.pdf) https://www.barrons.com/articles/dow-drops-4-5-but-the-market-is-probably-overreacting-1544234320?mod=hp_DAY_6 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/12-10-18_Barrons-Dow_Drops_4.5_Percent_as_the_Market_Panics_Over_Everything-Footnote_3.pdf) https://www.ft.com/content/2cda1c8a-f9be-11e8-8b7c-6fa24bd5409c (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/12-10-18_FinancialTimes-Trade_War_Concerns_Keep_US_Stocks_Under_Pressure-Footnote_4.pdf) https://www.simonandschuster.com/books/Happy-Money/Elizabeth-Dunn/9781451665079 (Click on About the Author) https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/12-10-18_Book_Excerpt-Happy_Money-The_Science_of_Happier_Spending-Footnote_6.pdf https://www.brainyquote.com/quotes/mahatma_gandhi_105593 * These views are those of Carson Group Coaching, and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice. * This newsletter was prepared by Carson Group Coaching. Carson Group Coaching is not affiliated with the named broker/dealer. * Weekly Market Commentaries are sent as mass email communications by the designated email address weekly_update@guidancewealth.com * Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate. * Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features. * The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index. * All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. * The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index. * The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. * Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce. * The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. * International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets. * Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. * Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. * Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. * Past performance does not guarantee future results. Investing involves risk, including loss of principal. * You cannot invest directly in an index. * Stock investing involves risk including loss of principal. * The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete. * Consult your financial professional before making any investment decision. * To unsubscribe from the Guidance Wealth Newsletter please reply to this e-mail with "Unsubscribe" in the subject line. WMC121018 Comments are closed.
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