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Small Investor play book READ JAN 20 2023

 

New or small investor playbook !

Keep reading....

 


 

I often get approached by investors who have $10,000, 20,000 or 30,000 in total and ask if they should invest in stocks. 

 

Since the majority of Americans don’t have hundreds of thousands of dollars at their disposal, the question becomes a reoccurring one.  Each recommendation depends on the specifics of the individual such as their age, the income level, dependents, and expectations to name but a few.

 

Generally speaking, if the investor is young, they might consider investing a certain amount on a regular basis in order to establish a sound and long term retirement plan.  It doesn’t have to be a lot. Indeed, adopting a crippling commitment amount that one cannot continue for whatever the reason is a sure way to derail an otherwise intelligent endeavor.

 

It is better to start with smaller amounts that is doable no matter what may lay ahead.

Since the young “investor” is new to the world of money, I first issue warnings covering beginning investing mistakes which are so common with new or young investors. I won’t cover them here but there are many (email me for previous article).

 

Since the young investor has plenty of time to build wealth, I am of the opinion they don’t need an investment advisor (nor their fees) and instead open up a discount brokerage account and buy a well-known and low cost index fund and then add to it on a monthly or quarterly basis. The Vanguard family of funds comes to mind but there are many other fine funds. Generally speaking, the larger the funds envelope of asset allocation or geographical localities, the less volatile it might be.

 

The reoccurring deposit into the account establishes not only a good habit one takes into adulthood, the compounding of even a small reoccurring amount can grow to a significant amount given enough time.

 

For older investors that might not have an extremely large nest egg, I remind them what they have is ALL they have, and it’s that amount that keeps them from the line at the local food bank. That means not losing it.

 

And that may mean placing their nest egg in a principal guaranteed investment.  Today that   could include a savings account, CD’s or a portfolio of U.S. Treasuries, all of which are 100% principal protected by the U.S. government.

 

Although for the past few decades they offered only a paltry return, these products are now paying a comparatively healthy return. Today, a properly constructed US treasury portfolio might offer an investor annual yields north of 4%.

 

A triggered annuity might also be another option. Although annuities are not FDIC insured, they can be 100% principal protected by the underlying insurance company. Triggered annuities may offer guaranteed interest rates and possible participation in market rallies yet may avoid any downside.

 

Even though someone may have a modest investment amount, they may still wish to take some risk in the hopes of growing their nest egg.

 

If that’s the case, consider more well-known and widely popular growth stocks that have a proven track record and real profits instead of investing in wild startups with lots of promises yet no profits. Going for the gusto might work out in their beer selection but rarely pans out for the inexperienced investor when it comes to stock selection.

 

On the flip side, I see the most damage done by investing in what I call “privates”. These offerings are not available through a broker but brought to the investor by an advertisement, relative or friend of a friend. Some are story lines about this or that idea or invention that sounds great pushed by some enthusiastic entrepreneur or glitzy advertisement. Other clickbait investments might be seeking money for some property, businesses or startups.

 

They are great stories for sure but from my experience, instead of big opportunities, they turn out to be big holes where money disappears along with the person that’s at the bottom of the hole with their mouth open.  

 

Great visual, I know.

 

Summing this up is to say don’t buy anything that’s not listed in the Wall Street Journal, which is to say whose existence is not widely known and not publically listed.

 

There are worthwhile and profitable investment opportunities privately available for sure, but I see too many dismal failures that swallow up people’s money to recommend a private to the average investor.

 

Avoiding some of the common pitfalls suffered by investing newbies and then considering some of the suggestions made here might go a long way in helping you reach your investment goals no matter what your nest egg.

“Watching the markets so you don’t have to”

(end)

(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249. His website is moneymanagementradio.com, and was recently voted Best Financial Advisor in Nevada County. 530-559-1214.

 

 


 

Please vote for me ! Jan 10 2023

 

I need your vote!

 

Hello, It is time for the BEST OF NEVADA COUNTY and I have my name in for Best Financial Advisor and Best Radio Personality. Both are listed under Best Professional Services. For the radio personality they only have a write in. You also must vote for at least five categories. Here is the link and if you could take a second and vote that would be great! Its easy and both are a vote for Money Matters! Here is the link!
 
Take a minute and show your support for the #1 Alternative Radio Financial Show for the people and TRUTH ~
 
 
 

 

The coming diesel shortage is about to make things a lot worse UPDATE 12/3/2022

 

Runs on diesel as do ocean freighters and trains.

Freight costs are about to go way up

 

With the price of gasoline skyrocketing to unthinkable heights in the last year or so, the next shoe to drop is the price of diesel fuel. Or should I say the next price to rise.

Not that diesel hasn’t increased in price.

It has.

Today the national average for a gallon of diesel is $5.29. Last year about this time it was $3.64. But that could be just the beginning.

Bad things are happening in the world of diesel as far as its supply goes, and that equates to a possible increase in price and my guess is its going to be a nasty one.

There are many factors all coming together in the supply chain of diesel, and although you might not own a diesel car or truck yourself, you are nonetheless going to feel the pain.

It might not necessarily be at the pump, but prices will likely rise at just about every other store you go to. That’s because it is estimated that 95% of goods travel at some point by a boat, truck or train powered by diesel.

The war in Ukraine has certainly been pinching supplies as Russia is a major exporter of diesel and China will soon implement an export restriction on a variety of goods, diesel being one of them. Add in some shutdowns of diesel refineries both in the U.S. and Europe, and historic low inventories of the fuel worldwide, and it has all the makings of a severe inflationary spike in diesel over and above the bad inflation we are already seeing in other goods. 

Estimated costs to the U.S. economy from spiking diesel prices exceed 100 billion.

Transportation fuel is the most common use for diesel which powers most trains, semi-trucks and yes, some automobiles, all using it in lieu of gasoline. A ton of it is used for ocean freighters.

Often called the dirty fuel as it is easier to refine than gasoline, it is most commonly used in in large engines and power plants which are the lifeblood of supply lines and power for almost everything we buy.

Making matters worse is a threatened workers strike deadline of December 5th from the railroad unions wanting improved health care and other compensation type demands. If the railroad strike comes to fruition, estimated costs are an astounding two billion dollars a day to the U.S. consumer. If you think supply lines are slow now, just wait and see what happens if the trains stop running.

Europe is preparing for what it knows is coming. Anticipating empty shelves due to fuel shortages, they are prepping for a possible run on cash (aka the banks) as people start to hoard both cash and goods. Many countries expect the same and are acting accordingly before supplies get critical.

More alarming is the fact that diesel is also widely used as heating fuel, mostly along the eastern seaboard, but also warming homes and businesses in a variety of regions worldwide. Should a cold winter be in store, things could get very ugly in many areas of the country and indeed, the world.

With supply chains already constrained due to a variety of reasons from the war, the CoVid shutdowns and a lack of available workers, a spike in the cost in the main fuel used for shipping will likely further stress retailers and consumers in obtaining goods in a timely manner. The result will be even higher prices and lack of availability on many items as shipping costs escalate.

With the Federal Reserve trying to tame inflation and consumers feeling its effect on their pocketbooks, a spike in diesel will further add to the cost of just about everything we buy. This will amplify inflationary pressures and worsen the scarcity of goods we are already facing and in process, make the Feds job of quelling inflation that much harder.

“Watching the markets so you don’t have to”

(end)

(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249. His website is moneymanagementradio.com, and was recently voted Best Financial Advisor in Nevada County. 530-559-1214.

 


 

Market update November 24th 2022

 

Last week saw glimmers of “green” hope as some stocks continued higher into the month.

Mid-week however gave in to some more selling as companies everywhere were revising estimates and reporting less than expected earnings for a variety of reasons.

Target reported close to half a billion was lost due to what it called “retail organized crime”.

No doubt new and puzzling legislation in variety of states taking a softer stance on theft may be to blame. Watching people running out of stores with armfuls of free stuff during protests in the last few years probably didn’t help, both in earnings nor by discouraging others not to try it.

So goes our world right now.

May you live in interesting times?

Unfortunately, I wouldn’t deem all things that are happening with the word interesting, but rather perhaps the word unfortunate would be more appropriate.

Another unfortunate event is the ongoing inflation we are all suffering through. A handful of statistics last week signaled a decrease in the velocity of inflation and   in the nominal rate which goosed investors to buy some stocks.

I am of the opinion we are far from out of the woods however.

In fact, with the ongoing parade of company earnings reports stating rising costs as a major concern, inflation continues to devour balance sheets.

The talking heads on the popular news wires are putting on their happy faces, trying to squeeze out any little bit of good news from the otherwise dismal inflation data which continues to hammer stocks.

It’s quite stunning how far some stocks have fallen, including some of the most prevalent previous market darlings, some of which are the most well-known names in the markets.

Meanwhile the Dow Jones Industrial Average (DJIA) slowly creeps off its year lows. Amazingly, at the time of this writing, The DOW is only down 9% from its all-time high.

Makes you wonder right?

Damn, should have just bought the DOW!

Reverberations from the bankruptcy of crypto exchange FTX seem a bit muted to this analyst. It’s my guess a bunch of folks are hiding a bunch of bad stuff from the FTX implosion which will surface eventually. 

I would bet there will be some surprising landmines (aka other companies) that will explode in the weeks to come due to the domino effect of the FTX blowup. A firm as large and as essential to crypto as FTX was, doesn’t implode and not put at risk many more entities that had dealings with them.

The FEDS may already be involved in clandestine bailout talks. Only time will tell.

No doubt a parade of sad stories from people who lost it all will float across the newswires as we progress along.

One wonders if everyone knows what “caveat emptor” means. For those of you who don’t, it means buyer beware, and you would have read that phrase many times here on Money Matters in the past year or so when it comes to crypto.

An interesting side note is although the markets have seen the worst year in decades as to the length and breadth of the decline, certain sectors have fared better than others.

Energy, healthcare and pharmaceuticals may show some yearly green, as well as a few stocks in the (surprisingly) retail sector. Energy and related industries far exceeded everything else however.

The Federal Reserve has raised interest rates four times in 2022 and they are expected to do it again at their next meeting in December. After that it’s a crapshoot as to what to expect. As always their decisions will be data dependent.

For now the financial world looks to the holiday season as an indication as to how the consumer is doing. With inflation boosting prices on just about everything, now doubt the purchasing figures will be up year over year again and the talking heads will look to spin that up to “the consumer is doing fine”.

I don’t know, are you doing fine?

The most accurate figure on holiday spending however would be the number of units sold instead of how much in total dollars was spent.

Higher inflation no doubt makes total spending higher and the high inflation we have been seeing will likely boost the overall total by a lot.

In actuality however, the truth will likely be a lot FEWER gifts were bought due to the higher price of each gift.

That makes a little more sense doesn’t it?  But don’t look for that number on the news wires.  You won’t see it.

“Watching the markets so you don’t have to”

(end)

(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249. His website is moneymanagementradio.com, and was recently voted Best Financial Advisor in Nevada County. 530-559-1214.

 


 

Bitcoin exchange FTX blown to bits Update 11 12 2022

 

Like I have been saying

VAPOR