Last January, the European Central Bank (ECB) announced for the first time in its 17-year history that it was going to begin buying government and corporate bonds, at the rate of €60 billion ($67 billion) a month at least until September 2016 in an attempt to stave off deflation and spur the euro zone’s economy. It’s a process called “quantitative easing,” or QE, and, according to economists’ consensus, its use by the Federal Reserve – the U.S. central bank – helped lift our economy out of recession six years ago. (more…)
The United States housing market in 2015 continues to heat up, with all four regions of the country experiencing significant sales increases this spring compared with a year ago. Housing prices were also on the rise across the country as the vibrant economy and rising rent prices have sparked a surge of interest in home ownership. (more…)
An individual 401k, also called a one-participant 401k plan or a Solo 401k, is a retirement plan for the self-employed. It is for business owners who have no employees other than the owner’s spouse. An individual 401k comes in two versions, traditional or Roth, just as other 401k plans do. If you choose the traditional version, you input money on a pretax basis and pay taxes upon withdrawal. In the Roth version, you input money on an after-tax basis and it is then not taxed upon withdrawal. You can divide your contributions between a traditional and a Roth 401k. Which you should choose depends upon your current and projected tax rates. (more…)
Investing requires long term rational thought. Investment professionals – such as the famous Warren Buffet – are often quoted as saying phrases such as “emotions have no place in investing” or “the stock doesn’t know you own it.” The effect of emotional investing is usually negative and is driven by fear, greed or paralysis caused by over analysis. At Clay Northam Wealth Management we recognize that the ideal conditions noted above are really never the case as personality and previous experiences always influence an investor’s decision. The psychology behind how investment decisions are made is a recent field of study called behavioral finance. Traditional investment theory assumes that decisions are based on rational, even mathematical expectations. Behavioral finance points out examples of thought processes that lead to irrational financial decisions. (more…)
Every day there are contradictory headlines about the United States real estate market stating the real estate market is rebounding, home sales are bouncing back, another bubble is forming, real estate disappoints, and the housing market is falling apart. Are houses appreciating or have they peaked? What’s really going on?
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Market volatility is a top concern for investors according to a just released Advisor Top of Mind index of investor advisors. This index is based on a survey of a diverse group of 204 investment advisors. October certainly saw its share of volatility. The S&P 500 ended the month at an all-time high, up 2.32% for the month but with an 8.35% spread between its low on the 15th and high on the 31st. Many investors fear losing their gains especially after seeing the market extremes of the last few years. (more…)
Scotland voted to remain part of the United Kingdom on its independence referendum. According to The Guardian the results of the September 18, 2014 vote were 55.3% to stay and 44.7% to leave. The first reaction for many was a sigh of relief. If it had passed there were a number of concerns such as: (more…)
Last January, the European Central Bank (ECB) announced for the first time in its 17-year history that it was going to begin buying government and corporate bonds, at the rate of €60 billion ($67 billion) a month at least until September 2016 in an attempt to stave off deflation and spur the euro zone’s economy. It’s a process called “quantitative easing,” or QE, and, according to economists’ consensus, its use by the Federal Reserve – the U.S. central bank – helped lift our economy out of recession six years ago. (more…)
