Element Retirement & Investment Consultants

12/04/2024

It's just a round number, but the Dow Jones Industrial Average closed above 45,000 for the first time today. I've been in this business for 3 decades, and remember when it closed above 5,000 for the first time (in November 1995).

That's 9 times growth over 29 years, or a 7.9% annualized return, over a timespan that includes the so-called 'lost decade' (2000-2010) when stocks had a negative return!

When it comes to investing, long-term thinking pays off.

01/15/2024

The SEC approved 11 spot bitcoin ETFs for trading, after a decade of debate since the first application was submitted. This closed the loop on the issue and comes after long-standing funds that could invest in bitcoin futures contracts as well as closed-end funds that owned crypto. The controversy had been based on fraud detection capabilities, as well as philosophical questions about how crypto would be regulated—as currencies, commodities, securities, or none of the above. One dissenting SEC commissioner described the decision as “unsound,” summing up the feelings of skeptics concerned about risks in crypto-based products. The SEC commissioner himself described bitcoin as a “speculative, volatile asset that’s also used for illicit activity.” A variety of industry players, including big banks and fund families, have moved in on the action; this should be viewed less as an endorsement but rather as a marketing opportunity.

01/07/2024

Check out our latest post:

2023 is over, and was very positive, but now we look ahead. As usual, there is no shortage of talking points, some of which don’t change from one year to the next. A few are continuations from last…

05/20/2023

Here's a great 'timing the market' game that only takes a few seconds to play. You get to live through a random 10 year period of the stock market, and have one chance to sell, then buy back, all of your portfolio. I challenge you to try it!

We'll pick a random 10-year period and see if you can spot and avoid the downturn.

04/20/2023

I asked Bard (Google's version of ChatGPT) to write a sonnet about investing. Here is what it gave me:

The stock market is a fickle beast,
It can rise and fall with little ease.
You must be patient, and you must be strong,
To weather the storms and stay the course.

Investing is not a get-rich-quick scheme,
It takes time and effort to succeed.
Do your research, and choose your stocks wisely,
And never put all your eggs in one basket.

There will be ups and downs, that's for sure,
But if you stay focused and disciplined,
You will eventually reap the rewards.
So don't give up on your dreams,
Investing can be a great way to achieve them.

Just remember, the market is a marathon,
Not a sprint. So take your time, and enjoy the journey.

🙂

04/14/2023

I've had a few questions about cash at Schwab and other custodians. While brokerage accounts are not covered by FDIC insurance (which covers up to $250K/person at banks), they are covered by the Securities Investor Protection Corp. (SIPC) to the same cash limit ($250K per customer). [This, of course, does not cover stocks, bonds, mutual funds, or other securities as those assets are only held there and have their own valuations, and thus would not be impacted directly in the event of an unexpected firm failure]

Importantly, too, Charles Schwab (the custodian we use for our clients) also provides "excess of SIPC" coverage through Lloyd's of London for up to $1.15 million cash per customer.

04/06/2023

Good article:

Don't let a low bank balance discourage you. If you can check these boxes, you're on the right track financially, according to a finance professor.

11/02/2022

Check out our latest market commentary!

I look at the markets every single day; that’s my job. Many of my clients don’t, which has been especially good this year. However, I know that many peeked at their September 30th statements a few …

09/23/2022

The radio and television, filled with bad news: high inflation, war, social unrest over race, polarized politics, etc.

I’m not talking about today, though: I’m talking about the year 1968. Americans were going through really bad times 54 years ago. In many cases, far worse than today.

On this day in 1968, the Dow Jones Industrial Average was at 906, or 3% of where it is now. Holding on through the turmoil from that day until today (the lowest day in the stock market so far this year) resulted in a 6.7% annualized return.

This is not meant to trivialize today’s tumultuous environment as there are certainly problems and resulting stock market volatility. It is, though, to be a reminder that you should not let short term fluctuations deter you from staying with your long-term objectives.

04/30/2022

Check out our latest market commentary, called "Market Stress, 2022 edition"

It’s that time again in the cycle of the stock market that I’m hearing more and more fearfulness from people due to the market volatility and the frenzied news coverage of it. I’v…

02/18/2022

Check our our latest market commentary.

This is a question I get asked a lot, especially whenever there is volatility like there is right now. While I don’t know what’s going to happen today, or next week, or even next year, I can tell y…