MCM securities analyst, John Meyer, tells The Cincinnati Business Courier that tasty Kroger/Whole Foods merger deal is unlikely to happen. Will investors go hungry?
For a limited only, new MCM clients who qualify are eligible for one full-year of free equity and ETF trade commissions, making now a great time to refer someone you know!
Personal referrals are MCM’s primary source of new business growth. We are actively seeking to grow so that we can bring more of MCM’s great benefits and services to more people. We are very thankful for each referral we receive and for all of our existing clients who joined the MCM family via referral. If you appreciate someone who shared MCM with you, it’s likely someone you know will also appreciate the gesture. So…share the wealth, figuratively of course, by referring someone you know. They’ll be grateful, and we will too.
If you live in the United States and have yearly family income of $150,000 or more, a recent study by Nielsen Global Consumer Insights reveals that there is a 25% chance that you have little or no savings because you consume every last dollar you earn. This is called living hand-to-mouth or, to put it bluntly, you’re basically broke. Isn’t that hard to believe?
The average family income in the U.S. is just under $47,000 as of 2014. It would be reasonable to think those fortunate souls making over $150,000 would not be struggling each month to make ends meet. Not so, according to Nielsen. Far from it, in fact. The same study revealed 33% of households making between $50,000-$100,000 and 50% of households making less than $50,000 are in the same hand-to-mouth situation.
A common concern among investors is running out of money in retirement. Combating this concern, the “4% rule” is widely presented as a simple way to help your money last. Created in 1994 by financial planner William Bengen, the 4% rule says if you withdraw 4% of your nest egg each year, adjusted annually for inflation, there is a 90% chance your money will last at least 30 years. Yet despite its notoriety, the 4% rule is not without issue.
Society has an activity addiction. We constantly need to be entertained. So much so that the average human attention span is only 8.25 seconds – down from 12 seconds a decade ago and almost an entire second less than a goldfish’s, according to Statistic Brain. Undoubtedly, millennials bring this average down a bit. 77% of people aged 18-25 said if nothing is occupying their attention, they will grab their phone, compared to only 10% of those over age 65. Begrudgingly, I can attest to this. I’m currently working to complete my MBA degree through Ohio University, which is rewarding but includes a lot of paper writing. Although I’m thriving, I’ll admit if I had a nickel for every time I checked my phone, answered a text message or opened an off-topic internet tab instead of focusing on a paper, I wouldn’t need to earn my MBA…I’d just buy one.
*stops writing this post to research the going price for MBA degree*
Obviously I can’t actually buy a graduate degree and as easy as it is to joke about the fact that many of us can’t pay attention anymore, this notion made think (impressively, for more than 8 seconds) about how investors are affected by short attention spans. This mindset makes investors hypersensitive to trading frequency (“Why didn’t my investment adviser buy anything today!?”) and short-term price movements (“She bought that for me last week, why is it already down -1%!?”). This mentality can cause investors to “act just to act,” or worse, act solely on short-term volatility.
Men own penny stocks on Mars and women have a money market account on Venus.
At least I think that’s how the saying goes…
Okay, maybe not quite like that but the point is, there are noticeable differences between genders when it comes to investing strategies. Many of these came to light just recently, since for years it was the norm for the men to handle most couples’ finances. As women became a bigger presence in the work force, waited longer to get married and couples began divorcing more frequently, women found themselves solely in charge of their own finances. Once they began to invest, based on their own values and goals, it became evident they (typically) invest much differently than their male counterparts. As an investor, a professional investment adviser and a woman myself, this idea is intriguing to me, so I decided to explore these differences…what they mean…and what to do about them.
Could this be the golden age of the mobile app? Maybe. Only time will tell. What is clear is that mobile application software (“app”) is transforming everything from how we reserve a table at our favorite restaurant to how we track our activity, sleep, health and much, much more. Financial services like banking, personal finance (e.g., budgeting, bill-paying), and investment management, are participating in big ways in the mobile revolution.
To that end, automated investment platforms called robo-advisors are proliferating rapidly. Nearly all major brokerage firms, mutual fund companies, and even some banks have an up-and-running robo-advisor solution for their customers. They have intuitively appealing names like “Intelligent Portfolios” etc., and they use a simple algorithm to automatically re-balance portfolios back to a fixed asset allocation determined by each user. In a nutshell, robo-advisors are an automatic, set-it and forget-it, mobile investment technology aimed at the mass market. Continue reading “Do You Robo? There’s An App for That”
Publicly-traded companies buying their own shares (share “buybacks” or “repurchases”) increase earnings per share by reducing the total number of shares outstanding (identical earnings spread over fewer shares). It’s commonly positioned as “returning value to shareholders,” because investors who maintain their shares end up owning a larger percentage of total company shares; in turn owning a larger percentage of future earnings. As of February 10th, S&P 500 companies have announced plans for $99 billion dollars of share buybacks in 2016. The largest start to the year ever. Get ready to receive some serious value!
Not so fast – Continue reading “Share buybacks. Good, Bad, or Ugly?”
My chops for penning this blog are that I am both a baby boomer and an employer. The social media biosphere is replete with (mostly) well-intentioned advice for what millennials need to do to excel in the workplace. These “rules” are usually handed down by older people who are well-established in their careers and hold positions of power and authority–in short–by baby boomers, who constitute a large majority of today’s professional power brokers, successful entrepreneurs, corporate executives, etc.
Boomers are notoriously work-centric, goal-oriented, self-reliant, and competitive. Too often they find millennials self-absorbed, lazy, entitled, and narcissistic. Is it any wonder that the two generations might butt heads in the office? I think not–and that’s assuming a millennial can win a job from a boomer hiring manager in the first place.
“…Well all my friends were doing it!”
“If all your friends jumped off a bridge, would you too!?!”
As kids, we all had some variation of this conversation with our parents, right?
So, as adult investors, we know that we shouldn’t blindly purchase a stock just because everyone else is, right? Unfortunately, no. Over time, individual investors consistently buy-high and sell-low, despite trying hard to do the opposite. The root of this trend is that, even after lectures from mom and dad, human beings find comfort in numbers.
“But Mommmm, everyone else is buying that stock!!”