Being smart with $$ -- Dow 26,000 by 2026!

BOLD MARKET PREDICTION: The Dow will hit 26,000 or better by the year 2026!! Ok, maybe it's not so bold. In fact that's only a 5% annualized return, which is below the long-term average for the stock market. But if you think that prediction is entirely reasonable and perhaps conservative, maybe we can stop worrying about what the market is doing in January 2016.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Dips in stocks can be good

Successful investors buy when the markets are high and when they are low. Dollar-cost averaging is the strategy where an investor buys on a regular basis as the stock market rises and falls. Monthly deductions from your paycheck into your retirement plan is one way to accomplish that goal. If the Dow is at 25,000 ten years from now, then along the way I would rather buy stocks at 16,000 than at 18,000. Dips in the market let you buy assets cheaper on your path to retirement than if prices went steadily straight up.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Fear, greed and speculation

Stocks are down about 8% since the year started.  But what do we know today that we didn't know 3 weeks ago?  A little perhaps, but 8% worth?  In the short term, the markets trade on fear, greed and speculation.  In the long term, they trade on fundamentals.  If you are invested properly, you should be able to ignore the volatility.  If you are not invested properly, perhaps we should speak.  
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Contradictions in the financial press...be careful what you read

Contradictions! That's what you get in the financial press.  If you read just one story you might think it's time to sell.  Someone else might read 2 pages over and think it's time to buy.  Money Mag (Jan/Feb 2016) says on page 63: "Why Quality Stands Tall" and "now is an especially good time to upgrade the caliber of your portfolio." But then on page 68 a new article says "The Case For the Scariest Stocks" and "history says times like these are precisely when you want to buy" them.  Read with caution and don't be too quick to follow one opinion!
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Winning Star Wars = Losing trade

Do you think it is easy to trade stocks? If somebody had a crystal ball and told you a month ago that Disney's Star Wars release would shatter expectations, would you have bought or sold Disney stock? Most reasonable people would say "buy."  However, in the last month, Disney is down 8% more than the rest of the market! Go figure. There's another reason I like stock index funds: You will never do worse than the market.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - 2015 was flat, were you?

The first day of trading in 2016 is ugly.  But how did you do in 2015? A balanced portfolio suitable for many families should have returned just a hair into positive territory.  Your response may be that returns were quite negative!  My response is that you need to review your financial plan. High fees, inappropriate investments and excessive trading may have caused you to lose money.  Ask me for details.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com