How Stocks Fare on Inauguration Day & Beyond
Wednesday is Inauguration Day (ID), a time of supposed new beginnings and a fresh start for the country. The truth of the matter is that stocks have been behaving as if there has been a new administration since the day after Election Day which they typically do. That’s how the four-year Presidential Cycle works in the markets. The markets don’t wait until January 20th and then realize there is a new sheriff in town. Intuitively, you would think that with […]
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Date: January 19, 2021
Do You Really Need a Financial Advisor? Investing Mistake #1: Not Considering Inflation!
As a financial advisor in Woodbridge, CT, as well as the founder and president of Heritage Capital, I see some of the same dangerous mistakes made by DIYers (and sometimes bad financial advisors) when putting together a financial plan. It is not properly factoring in the detriments of inflation. Inflation is a general rise in prices over time, which reduces your purchasing power. In other words, it cuts your standard of living. It’s been tame for years, but don’t be […]
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Date: January 18, 2021
Pullback is Here – Foundation Strong
The stock market looks to open mildly lower and the media is blaming incoming President Biden’s recently unveiled $1.9 trillion spending bill. Yet again, that is pure and utter nonsense. The market already knew his plan would be in the trillions and that it is already dead on arrival in its current form. It’s almost as if any down day needs an explanation as they are no longer allowed. Since October 30th when I pounded the table that this was […]
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Date: January 15, 2021
Dotcom Era Euphoria Doesn’t Mean Imminent Bear Market
The short answer is yes. Epic greed and euphoria remain in the markets. Bitcoin may have mildly pulled back and Tesla hasn’t made a new high this week, but that won’t correct what is the single worst sentiment backdrop since the Dotcom Bubble. However, unlike the Dotcom era, the stock market’s foundation remains fairly solid. Recall that when the Dotcom stocks soared, they were the only game in town. The vast majority of stocks peaked in May 1998. Today, the […]
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Date: January 13, 2021
All Smart Eyes on the Dollar – Top 15 Resolutions Video is Up
As you know, I offered my full Top 15 Financial Resolutions for 2021 on Fox61 last week and I actually sped through the entire list. Over the weekend I made a video of that list and went into more detail on each of the resolutions. Here it is below. Top 15 Financial Resolutions for 2021 Since Friday’s blog post, there is nothing that has changed any of my thinking regarding the markets. Stocks look like they will open down by […]
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Date: January 11, 2021
Easy Money and Fun
So far in this young year, we have seen a new variant of highly contagious COVID, a blue sweep in Georgia resulting in unified government in DC and a massive protest gone awry with the United States’ Capitol being stormed by lunatics and destructive people. If I read you those headlines from Japan, Germany or Brazil and asked you to guess how their stock markets were performing, I think it is safe to say those most would estimate at least […]
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Date: January 8, 2021
What Santa Claus, Q4 and 2020 Say About 2021’s Market Return
In November and December the media was all abuzz with the Santa Claus Rally (SCR) and January Effect. Now that the SCR has ended and there is a result, no one seems to care about it. That’s very typical. If you are keeping score at home, the SCR which is technically the final five trading days of the year and first two of the new year, yielded +1%. Revisiting Yale Hirsch’s old adage, “Should Santa Claus fail to call, bears […]
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Date: January 6, 2021
The First Downside Catalyst of 2021 – Georgia on My Mind
Here we are in 2021 and nothing has changed as the calendar turned. The stock market remains in an epic state of greed and euphoria, the likes of which we haven’t seen since the Dotcom era although January 2017 and 2018 as well as Q4 2019 were close. The market’s foundation was very solid, but there are a number of cracks appearing the lead me to believe we will see at least a short, sharp pullback of 4-8% in Q1. […]
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Date: January 4, 2021
Investing in Volatile Markets: Heritage Capital Addresses Concerns
Market volatility is constant, yet it’s common for investors to forget during strong bull markets. We all got a reminder in 2020. With a new year upon us, investors are now asking: What if another 2020 happens? How do long-term investors prepare for volatility? As founder and president of Heritage Capital, I’ve been helping investors since 1988. Volatility fluctuates over time, providing opportunities and challenges for investors who tend to feel more uncertain during highly volatile markets. It is like […]
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Date: January 4, 2021
Pay Attention – January Has The Most Stock Market Trends of The Year
Welcome to 2021! I hope you had a safe and at least a semi-enjoyable New Year’s. After a delicious dish of langostinos with squid ink pasta in a spicy sauce that I think had some bacon and an amazing 2007 Shafer Relentless, I fell asleep on the couch from 8 to 10pm. When I awoke, the Shafer was long gone and my son and I started watching some random show that turned out to be really great and highly recommended. […]
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Date: January 2, 2021
