May 28, 2016: There Must Be Some Sort Of Mistake

First, I want to wish everyone a Happy Memorial Day and thank our veterans for their service. Let us never forget those who paid the ultimate price…

Second, on a more mundane topic… This week we did something different. I had a guest, Tarek Albareedi of Online Trading Academy Phoenix, on the show. We discussed the four biggest mistakes that traders and investors consistently make. Each week on this show, we spend a great deal of time talking about macro topics and the risks and opportunities they pose. However, even if you know what is coming, if you don’t know what to do and the mistakes to avoid, you will still be unable to take full advantage of those opportunities. This week we tackled the most common of these mistakes.

Check the show out here:

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursdays and Saturdays at noon

◾1100 KFNX:  Wednesdays at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturdays at 1pm and Sundays at 4am

May 21, 2016: First, Do No Harm

This week, Hillary announced that she was going to put First Laddie Bill in charge of the economy if she wins. She stated (as reported by ABC), “My husband, who I’m going to put in charge of revitalizing the economy, ’cause you know he knows how to do it,” Clinton told the crowd…

This got me to thinking about more than the odd grammar of that sentence. People give Bill Clinton the credit for the growth in the 1990’s, but does he really deserve it? The short answer is “no”. It was simply a decade when we took on debt and spent savings, drawing demand from the past and the future to the present, ultimately weakening the economy in the long run. To be fair, this wasn’t his fault, it was driven by cheap money from the Fed, not the President, but it wasn’t some economic miracle either. Today, we still have the cheap money, but not the debt capacity we had then, making even the illusion of prosperity today even more difficult, and the future more fraught. We discussed the likely lack of growth in the economy going forward, regardless of whom is elected this fall. We also spent a little time looking at the market and commenting on the implications of the fact that stocks continue to be unable to breakout to the upside. Finally, we talked about the possible implications of the release of the Fed minutes on Wednesday.

Check the show out here: 

Given this week’s topic we are going to be doing a special class, “Successfully Investing In A Falling Market”. If you would like free tickets to the class, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX:  Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am

May 12, 2016: “What Are You Going To Do About It”

Last June 13th on this show, I said that the S&P500 appeared to be topping out. That has turned out to be accurate. The market is net down about 1% since then, but it has been down as much as 15% and never up more than about 1%. I have been reflecting on a question I often ask applicants to the Academy. “If you knew the market was going to go down before it happened, would that be useful”. People inevitably answer yes. I think the answer is no. The problem is that people don’t know what to do when it goes down, they just keep doing what they’ve always done (buy and hold) and hope that this time it is different and that it won’t be that bad. The reality is that you need totally different skills in a down or sideways market, skills that almost no retail traders have. This is why so many investors fail to reach their goals. If they get lucky and move out of stocks before a downturn they may be okay, if they don’t, they are devastated. Plus, if they move out and sit on the sidelines, they have no ability to make money as the market falls.

Historically, moving to fixed income (bonds, CD’s, etc.) has been an option, but not today. Yields are simply too low. If you invest $500,000 at 2% yields, you will earn less than $30/day. That isn’t going to pay many bills.

Given current valuations, the market is unlikely to return more than 1-2%/year over the next 10-20 years (some years it will crash, others will soar, but net/net, it probably won’t go up much, although it could fall and not recover). Interest rates are unlikely to go up for years, so “safer” investments won’t be an alternative either.

This week we talked about why this is my forecast and what skills you will need to prosper if I am right. We specifically addressed a recent column that suggested our only problem is that people are saving to much and spending too little. I think this is missing the point…

Check the show out here: 

Given this week’s topic I am going to be doing a special class, “Achieving Your Financial Goals In The 21st Century”. I will be teaching this class personally.If you would like free tickets to the class, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX:  Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am

May 7, 2016: Forever In Your Debt

The night this was recorded, “The Donald” appeared to wrap-up the Republican nomination. In this week’s show we talked a little about the likely presidential match-up and race for the White House, but we also discussed the reality that no candidate is really going to solve the problems we face as a country. The bottom line is that we have spent already spent the money of generations to come. Whereas the Central Banks claim that the problem with the world economy is too much saving, any chart of national or world debt easily demonstrates that the problem is too much debt. This debt will rob us of growth in the future and without growth, we will be unable to provide opportunities for generations already here, and generations to come. The issues of wealth and income inequality will only become larger until a crisis appears. That crisis may not arrive for 10-15 years, but it must come.

What will happen sooner is a market crash. It may not be this year (but it might), but a crash is inevitable. Earnings are falling, growth is non-existent and stock valuations are quite high. The question is, are you prepared for a crash?  Even if you knew a crash was coming tomorrow, what action would you take? How would you protect yourself? How would you profit?

This week, we talked about alternatives, and the importance of acting before the market crashes, not just reacting after it is too late. Check out this week’s show here:

Given this week’s topic we are going to be doing a special class, “Anticipating Market Moves, And What To Do About Them”. If you would like free tickets to the class, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX:  Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am