Buffer ETFs: Downside Protection in Uncertain Markets

Executive Summary Buffer ETFs offer a strategic option for investors seeking to balance risk and reward, particularly in volatile markets. Buffer ETFs are specialized exchange traded funds designed to provide investors with downside protection while capping potential gains. They achieve this by investing in a stock market index, such as the S&P 500, and utilizing…

Historic Underperformance Nearing an End?

The S&P 500 is a market capitalization weighted index, meaning that larger companies have a higher weighting in the index and therefore can have a greater impact on returns. In 2023, the Magnificent 7 (Mag 7) dominated the S&P 500 returns. The Mag 7 made up approximately 30% of the S&P 500 and consisted of…

Fears and Opportunities

Is a Recession Coming? Safe Places to Stash Cash… A Word About Schwab…   Soft Landing or Recession? There are many economic indicators that show weakness in the economy, but the Conference Board’s Leading Economic Indicators (LEI) brings everything together to give a complete picture of where the economy is heading. Here is a description…

SECURE 2.0 – What it is and how it affects you

SECURE 2.0 was signed into law by President Joe Biden on Friday, December 29, 2022. While the changes in Secure 2.0 are not as drastic as those in the original SECURE Act from 2019, there are several items that will affect retirees. Most of the provisions, however, impact workers and employer plans. Secure 2.0 includes…

What Would We Do Without Experts?

What the Experts Said Remember what was supposed to happen last year? 2022 was going to be the first year the world opened back from the pandemic. Inflation was said to be transitory, earnings would increase, and the market environment looked good: A Reuters poll of strategists in December 2021 predicted a 7.5% gain in…

Last Chance To Get A 9.62% Guaranteed Interest Rate

All About I Bonds “A series I Bond is a non-marketable, interest bearing U.S Government savings bond that earns a combined fixed interest rate and variable inflation rate (adjusted semiannually). Series I bonds are meant to give investors a return plus protection from inflation.” Investopedia.com The current fixed rate is 0%, but the current inflation…

Perspective

Chart data of 10/3/2022. This chart was generated using data aggregated by MetaStock.   If you feel exhausted and disgusted by the stock market this year, above is a visual representation of the up and down nature of the S&P 500 for 2022 through September. The fact that the downturns far exceeded the upturns is…

Time to get Tactical

Originally published as a letter to clients on 9/8/2022.   Investors have a lot of choices. They can invest in stocks, bonds, mutual funds, and exchange traded funds (ETFs). They can invest in passive indexes or with active managers. They can pick from an almost unlimited number of investment styles (growth, value, international, small-cap, etc.)…