Despite a nice recovery day on Tuesday, it now appears that the investment markets are in full panic mode, the result of the World Health Organization declaring the Covid-19 virus to be a global pandemic. It’s important to also remember that Covid-19 is not the only thing impacting markets. The significant drop in oil prices is also playing a role, that while rattling markets, could actually be a good thing for consumers headed into the summer months. Nevertheless, traders on Wall Street are selling at virtually any price, which is causing the markets to drop into bear market territory.
The long bull run that started in March 2009, and set many records along the way, is now officially over. May it rest in peace; we will all remember it fondly.
Hard Conversations, Easy Results: Why the Prosperity People Way Works
Here at Mackey Advisors™ we are blessed to work with a fantastic group of clients that we consider our friends. We adore it when folks send us photos from their dream trips abroad or drop us off chocolate treats from the sweet shop down the street. While all of these things make my everyday fulfilling, they are not why people hire us.
People hire us to assist them on their path to live their most prosperous life. Somewhere in the midst of all of that includes being an investment advisor, but at its core its about having the fun conversations, the no-so-fun conversations, and navigating the things that life hands each of us. While we strongly believe this is the best way to do business, its not the easy way to do business. Part of what makes what we do a challenge is having those hard, not-so-fun conversations.
You've Waited All Your Life for This: Avoiding the Non-Financial Pitfalls of Retirement
Starting off 2019 here at Mackey Advisors™, we have already had numerous discussions with folks planning to retire at a date in the not too distant future. Would it surprise you to hear that every day, 10,000 boomers turn 65 in this country? Many of those folks have worked and saved for years in order to enjoy a whole new life called “retirement” after that 65th birthday. Unfortunately, all too often the ride into the sunset becomes a drive off a cliff even if they have prepared themselves to have a financially successful retirement.
Market Moving News
As of this week, the government shutdown is now the longest in U.S. history. Granted, it is only a partial shutdown. Previous wholesale shutdowns occurred in January 2018 over immigration (specifically saving DACA-Deferred Action for Childhood Arrival) which lasted 3 days and October 2013 (over saving Obamacare) which lasted 16 days.
These prior shutdowns can be used to estimate the economic impact of the current one. According to the Office of Management and Budget, the October 2013 government shutdown lowered real GDP growth by 0.2% to 0.6% - or somewhere between $2 billion and $6 billion in lost economic output. It is estimated the current shutdown is knocking off anywhere from 0.1% to 0.5% of GDP per day. It will take quite a while for the actual impact to show up in economic stats.
Matt's Monthly Money Must Do's | February 2019
Don’t get me started on the pronunciation of this month. Feb-BRuary and Feb-Uary are two very different pronunciations. One sounds like a frat-bro joke about a month-long binder, which is also the correct pronunciation, while the other sounds like gibberish. Regardless of your particular persuasion, why is this the only month with multiple pronunciations? No one skips the p in September. Let’s discuss something productive about the month of February.
Finalize your taxes
Take a new worth snapshot
Buy items on deep discount
New Year, New Tax Form: What You Should Know
Happy New Year everyone! While the new tax law has been in effect for over a year now, most of us will only begin experiencing it over the next few months as we prepare our 2018 taxes. Quite a bit has changed and gradually, throughout the last year we have gotten more and more info on how we might be affected.
3rd Quarter 2018 | John's Market Commentary
Well, 2018’s third quarter earnings season is history. It was pretty much a repeat of both the first and second quarters. The U.S. economy will stay strong in 2019 and inflation will tick-up above 2% and so the U.S. central bank should continue to raise interest rates gradually, New York Fed President John Williams said Tuesday. “Given this outlook of strong growth, strong labor market and inflation near our goal and taking account all the various risks around the outlook, I do expect further gradual increases in interest rates will best sponsor a sustained economic expansion,” Williams said at a press briefing.
A Holiday Reminder from the Classics
“If I could work my will, every idiot that goes about with “Merry Christmas” on his lips, should be boiled with his own pudding, and buried with a stake of holly through his heart!”…Ebenezer Scrooge
Does this sound like anyone you know? While it is from the original Charles Dickens’s, “A Christmas Carol,” I like to attribute it to my favorite Scrooge, Mr. Magoo. If you haven’t seen this hilarious animated classic, try You Tube or find the DVD. It is one of my favorite Christmas lines, but not so much because I am cranky, but because it tells a great story.
Depending on how you look at it, Scrooge either had it all or had nothing. He lived in a huge house, had a successful business, and spent his time counting his “crowns and coppers”. Of course he had time for all of this because that was all he had. His friends and loved ones had abandoned him and the townsfolk had trouble knowing whether to hate him or pity him.
Scrooge needed balance between success and happiness. At Mackey Advisors we work with clients to establish this balance every day.
Matt's Monthly Money Must Do's | January 2019
People don’t realize it, but the Latin root for January (Ianua) means door. So, depending on your perspective you are either opening the door to the new year, or shutting the door on the prior year. If you are like me, it is more of a slamming the door shut and creating shock waves in the space-time continuum. Now onto the important things for the new year.
Find deep discounted items
Use a new finance app
Set a non-financial goal
3rd Quarter Economic Update | November 2018
It can’t get a whole lot better in the U.S. job market (or can it?). The employment situation continues blast through expectations. The number of Americans losing their jobs and applying for unemployment benefits each week remained near a 49-year low in mid-October, suggesting no visible deterioration in the U.S. labor market.
Initial jobless claims, on measure of layoffs, dropped by 5,000 to 210,000 in the seven days ended Oct. 13th. While new jobless claims edged up by 2,000 to 211,750, they have been below 220,00 since early July, a remarkable stretch last duplicated almost a half-century ago. The number of people collecting unemployment benefits, meanwhile, fell by 13,000 to 1.64 million. These “continuing” claims touched the lowest level since Aug 1973.
Additionally, Job Openings just hit a record high and the U.S. Unemployment rate has fallen to a 48-year low while hiring remains robust. The demand for labor is so strong it’s pushing up the cost of worker compensation and giving an economic growth cycle that’s now more than nine years old the staying power to become the longest expansion ever.