A strong Friday rally pushed both indices to record highs. The Dow closed over 28,000 for the first time today and the S&P 500 eclipsed 3,100 for the first time. Earlier this week, Bank of America described the rally over the last few weeks as the Fear of Missing Out (FOMO) rally. Many institutional investors were convinced recession was right around the corner over the summer and are trying to catch up to the broader indices. The concerns about a US or global recession have declined and investors have started moving money back into equities. For the week, the Dow gained 1.2% while the S&P 500 increased 0.9%. Read More
The SEC announced this week it is turning its focus towards retirement plans run for teachers nationwide. Several companies, including an AIG subsidiary, cover certain costs for school districts in return for being allowed to offer financial advice to teachers and staff. Large insurance companies and most financial firms do not have a fiduciary responsibility to clients. They are not required to put client interests ahead of their own. The SEC is concerned, likely correctly, that these firms are targeting consumers that aren’t overly financially savvy and pitching high-fee products. My business is structured as a Registered Investment Advisor (RIA). RIAs have a fiduciary obligation to clients and we are legally required to put your interests ahead of our own. RIAs make up only 6-7% of all advisors though. It’s a shame how many regular investors receive questionable financial advice and are sold poor investments based upon advisors making higher commissions on certain investment products. Read More
Oil increased 0.8% this week to close at $57.86/barrel. The yield on the 10-yr Treasury moved lower, closing at 1.83%, from 1.94% last week. The average rate on a 30-yr fixed rate mortgage moved higher to 3.75% from 3.69% last week.
Personal Finance Articles
- Nine Questions to Ask Your Advisor
- When Should You Start Taking Social Security?
- Why You Should Do An IRA Rollover with an Old 401k
- Should You Take a Pension Buyout?
- Why Term Life Insurance is the Only Life Insurance you Need
- How Much Life Insurance Do You Need?
- Why You Should Never Buy a Front-End Loaded Mutual Fund
- How Much House Can you Afford?
- The Importance of Non-Retirement Savings