Stock Market Archives - Page 2 of 2 - Cadence Wealth Management

Jun 06

Strong Jobs Report! All Good, Right?

By Cadence WM Blog

The most recent monthly jobs report came out last Friday and was solid on most counts. The pundits were very excited about it and used it as an example of how strong the economy is and where it’s likely headed. Heck, even the President tweeted that he was excited to see it (an hour before it was released.) So was the strong report actually a good thing? Of course. More people at work earning a living is always a good thing. There’s no debating that. The question is, what does that mean for the stock market and economy going forward?…

May 09

Ask Cadence: If I am not invested in the stock market, am I missing out on these returns forever?

By Cadence WM Blog

Any investor who has not been 100% invested in the stock market since March 9, 2009 has missed out on some amount of stock market returns. However, everyone knows very few people should ever be 100% invested in the stock market. Therefore, we are going to miss out on some amount of returns during any period where the stock market outperforms other investment areas. Whether it’s the U.S. stock market or something else, there will always be an investment that outperforms what we own – this is an important concept for investors to grasp. If the risk of an investment…

Apr 12

Ask Cadence: Where are the safe places to invest if I’m nervous about the stock market?

By Cadence WM Blog

As a reminder, there are no completely safe places to invest, as nearly all investments have the potential to lose value at times, but there are almost always some investments that are relatively safer than others. The first step in the process is to identify those places that are most expensive and therefore present the most risk of loss over longer holding periods. Currently those are the world’s stock markets, particularly the US stock market. The next step is to identify those places that offer more value from a risk/reward standpoint and that have a better chance of holding their…

Jul 18

Ask Cadence: Should I wait to invest given all the uncertainty in the world today?

By Cadence WM Blog

Although the rationale for this is sound, waiting to invest can be tricky because it’s always difficult knowing when the time is right to start putting money to work. Usually the best time to get invested is when the world feels scariest. The economy is struggling, the stock market is down significantly, and it’s possible that the stability of your income and financial well-being is also in question making the decision to invest money that you feel you can’t afford to lose a tough one. For this reason, we feel it’s important to always stay invested in a strategy that…

Jun 06

Ask Cadence: Is it possible the rules of the markets have changed and that they can go up for longer than in the past?

By Cadence WM Blog

Anything’s possible, but it’s extremely unlikely that the rules of the game have changed. At the end of the day, asset prices only go as high as people are willing to pay for them. The definition of a bubble is when prices reach levels that don’t seem to make sense, yet people keep buying simply because they feel prices will continue to rise. Rationale for why values are going up gets thinner and thinner. At some point, investors realize that what they’re considering for purchase has an underlying value that’s much less than what the price reflects. Whether this is…

May 15

How Expensive Is The Stock Market?

By Cadence WM Blog

We’ve incorporated our fair share of complicated charts and concepts into our letters over the months. This one, in our opinion, really keeps things simple. If we’re trying to figure out if the stock market is expensive, doesn’t it really come down to affordability for most people? When we look at the average earnings of workers across America – $21.90 per hour – the stock market has never been less affordable. It currently requires 109 hours of work to buy the S&P 500 (assuming one could buy 1 unit of the index at its current level of approximately 2,390). This…

Stock Market

Strong Jobs Report! All Good, Right?

Ask Cadence: If I am not invested in the stock market, am I missing out on these returns forever?

Ask Cadence: Where are the safe places to invest if I’m nervous about the stock market?

Ask Cadence: Should I wait to invest given all the uncertainty in the world today?

Ask Cadence: Is it possible the rules of the markets have changed and that they can go up for longer than in the past?

How Expensive Is The Stock Market?

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