# Stocks
Understanding the Wild Ride of Markets: Embrace the Financial Rollercoaster
Hey there, fellow financial thrill-seekers! Today, we're diving headfirst into the plummeting world of market cycles. Hold onto your hats because we're about to embark on a journey that'll change the way you view those heart-pounding ups and downs of the financial rollercoaster.
3 Years Ago, My Cousin Said He'll Earn $500k from Day Trading. But Is It Sustainable?
My cousin, Tim, left school during his third year while studying Business Administration in a regular college. He had an aspiration to get his CFA after college and aimed to venture into equity analysis. But after our Uncle John's unfortunate demise, he received an unexpected sum of $40K. With this, he thought of implementing what he'd learned while managing the student fund at our college and apply it to his personal investments.
Today in History, September 26
Certain days in history are distinguished by events that have left lasting imprints on the collective consciousness of societies across the world. The 26th of September is replete with such incidents spanning diverse areas — from scientific achievements to pivotal societal shifts. This article endeavors to shed light on five of these illustrious events, substantiated with appropriate references.
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Clorox Company Continues to deal with Cyberattack
Clorox Company, the global manufacturer of consumer and household cleaning products, said a cyberattack that was disclosed last month is disrupting operations and hurting the availability of the bleach and cleaning-wipe maker’s products.
Today in Business History: September 15th
September 15th holds a unique place in the annals of business history. While many dates are remembered for breakthroughs in technology or the birth of iconic companies, September 15th stands out for events that reshaped the financial landscape and offered lessons for future generations.
Endeavor completes merger of UFC and WWE, forming TKO Group
In a move that has sent ripples through the sports and entertainment world, Endeavor Group Holdings has successfully finalized the merger of two giants: UFC (Ultimate Fighting Championship) and WWE (World Wrestling Entertainment). This monumental combination, first announced in early April, marks the birth of TKO Group Holdings, a powerhouse entity set to make waves in the industry.
Setting the Table for Year-End Markets
"Will you set the table?" When my wife says this, I know I'm about to do a little work, but soon it will be time to eat. The market blues of August and September hopefully set the table for good times ahead. Stocks snapped a five-month winning streak in August after the S&P 500 ended negative 1.8%. And while the monthly stock winning streak is over, upside momentum may continue. Although stocks went negative, they did so in an orderly fashion, which is a good sign of healthiness for the market. The market's overall trading volume was low, telling me investors were not panic selling. While the stock's monthly winning streak has ended, there might still be some solid months ahead. Historically, after the end of a five-month positive streak, the market has gone up an average of just over 7% over the next six months. Interestingly, this same scenario has happened six times since 1950, and all but one were positive over the next six months, according to LPL. Don't get overly worried about September because it is generally a dud. September is historically the worst month of the year for stocks since 1950. Stocks have averaged a negative half percent and have finished negatively more times than not. The good news is that historically, stocks have rebounded from a weak September with a pretty strong October. The October-November-December period is the strongest part of the year for the market. This and the fact that the market usually does well just leading up to the US presidential election gives me optimism. While the next few week's outlook is mixed, I am encouraged by the historical market trends around the presidential election cycle and the frequent strong returns of the year's final quarter. With this short-term outlook, I'm maintaining a slight overweight to fixed income (bonds) over stocks in the accounts I manage. I'm not negative or bearish towards stocks but more neutral to them with an expectation of upcoming buying opportunities. I had a table-setting misstep while doing a college internship in England. I was trying to be helpful and set the table but was quickly corrected on how the "British do it." In my mind, I was thinking, "This from a country that doesn't even know which side of the road to drive." I didn't say it because I still wanted to eat. Let's hope the market isn't as picky about the table setting and serves up something great for the year's end. Have a blessed week!
Over 135,000 traders affected as CFTC intercepts $300 million forex fraud
This article may contain AI-assisted content. The Commodity Futures Trading Commission (CFTC) filed a lawsuit against "My Forex Funds," accusing them of defrauding over $300 million from prospective professional traders.
Risky Game of Cash: Avoid Market Timing
“That squirrel had a death wish.” The squirrel was trying to cross the road but was indecisive and started darting back and forth until finally going back to the side he had just come from, barely missing my truck tire. Many investors are like that squirrel, darting back and forth about whether to stay in cash or reinvest in their portfolios. Parking too much of your portfolio in cash might seem like a good plan in today’s investing environment, but it has its risks too. Peter Lynch was correct when he said, “Far more money has been lost by investors in preparing for corrections or anticipating corrections than has been lost in the corrections themselves.” Higher rates this year have led many investors to leave cash out of the market and on the sidelines. As of the end of August, Americans have $5.6 trillion in money market funds, which is a record high and nearly 20% more since the beginning of the year. Here are three reasons why having too much of your investments in cash can be a risky game. First, the opportunity cost is high. You’re missing out on daily market growth and income while waiting for the perfect time to reenter the market. Fear can lead investors to sit in cash as stocks march higher. Second, you won’t keep up with inflation. Even though CDs, Money Markets, and Treasuries are paying more than they have in a while, they will never outpace inflation. Third, you can’t time the market. It is impossible to perfectly time reentry in the market, even for professional investors. Reluctant investors rarely get the timing right. The main thing is to stay consistent with your investment plan. The odds of long-term investors reaching their goals aren’t good when they aren’t fully invested. Since it’s impossible to time the market, don’t stress about finding the perfect time to reinvest. Don’t be the squirrel. Have an investment plan and stick to it. I’m not saying to put your investments on cruise control because I am a huge proponent of active management. But understand there is danger in starting and stopping because sometimes it leaves you lying on the road with tire tracks across your face. Have a blessed week!
SEC adopts new rules addressing loopholes in a digitized securities market
This article may contain AI-assisted content. The Securities and Exchange Commission (SEC) has passed amendments tightening exemptions to Section 15(b)(8) of the Securities Exchange Act of 1934. This specific section mandates that any broker or dealer registered with the SEC must join the National Securities Association unless they deal in securities exclusively on an exchange where they are a member. Currently, the sole registered National Securities Association is the Financial Industry Regulatory Authority Inc. (FINRA).
Illinois medical doctor charged & fined by SEC for insider trading
This article may contain AI-assisted content. On August 18, 2023, Daniel V.T. Catenacci, an Illinois-based medical professional, faced the consequences of insider trading allegations brought against him by the U.S. Securities and Exchange Commission (SEC). The U.S. District Court for the Northern District of Illinois found in favor of the SEC, finalizing the judgment against Catenacci regarding his alleged illicit stock trading activities.
Top 3 Dividend Stocks that make me $300/Month
Everyone loves a good stock that grows in value over time. But what about those stocks that give you a consistent bonus just for holding onto them?. Yes, we’re talking about dividend stocks! These treasures not only offer potential capital appreciation but also churn out regular dividends, padding your investment returns.
Devon Energy's Fixed and Variable Dividend Provides an Attractive 3.92% Dividend Yield
This is not financial advice and you should not rely on my analysis to buy or sell any stock or cryptocurrency. I am not undertaking to induce you to buy or sell any securities. I am relying on the “publisher’s exclusion” in the Investment Advisers Act of 1940 to provide this information without any personalized or individualized investment advice.
How to Invest: A Comprehensive Guide for Beginners
Investing is a powerful tool that can help you grow your wealth and achieve your financial goals. However, for beginners, the world of investing can seem overwhelming and complex. In this guide, we'll break down the essential concepts and provide step-by-step instructions on how2invest.