February 11, 2017: Performance Issues?

Over the last 30 years, the S&P 500 has returned about 10.35%/year. The average mutual fund investor during that same time earned just 3.66% per year. Over 30 years, a $10,000 investment matching the market would have earned almost $200,000. An average mutual fund investor, less than $30,000. The average investor left 85% of the money on the table, and paid for the privilege of doing so.

This week we began an exploration as to why the average retail trader performs so poorly, even in bull markets. To learn about just a few of these issues, check out this week’s show here:

Given this week’s topic we are going to be conducting a special class, “Making Money In Any Market”.  If you would like free tickets to this 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!

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 shows, “The Right Side Of The Trade” and “Mastering Markets” on the following stations:

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

◾1100 KFNX:  Wednesdays at 11am and Saturdays at 2pm

◾960 The Patriot:  Saturdays at 1pm

◾1360 KPXQ:  Saturdays at noon

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

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

January 28, 2017: Roller Coaster

Today was pretty wide-ranging. We put together a number of ideas from the last few shows to highlight the uncertainty of this market. We talked about what could take it up and down, and how ultimately which direction would win was impossible to know. As I post this the market has been dropping because of the reaction to the new Executive Order on Refugees, as well as other policies. We aren’t even two weeks into this presidency and it is looking like a wild ride. One of our students remarked that the next 4 to 8 years would be like having a free ticket on a roller coaster. My response was that I wasn’t sure that any of us were tall enough to ride it.

Check out this week’s show here: 

Given this week’s topic we are going to be conducting a special class, “Making Money In Any Market”.  If you would like free tickets to this 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!

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 11am and Saturdays at 2pm

◾960 The Patriot:  Saturdays at 1pm

◾1360 KPXQ:  Saturdays at noon

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

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

December 17, 2016: Losing Interest

This show was recorded on 12/14/16, the day the Fed hiked rates another 1/4 point. The market rallied into an area of supply and then immediately fell into an area of demand, and then rallied from there. It was a classic example of what really drives the market, supply and demand. It isn’t “news” or earnings, it is willing buyers and sellers.

In this week’s show we focused on that idea, as well as describing a little more of why I refer to this as a “hollow” market. The bottom line is this:  the stock market, housing market, GDP and government budget are all dependent on low interest rates. Whether the Fed continues to raise rates, or if the market raises on its own, trouble must come to this market. The problem is that the timing of this is unknowable, so we need to know how to make money in both up and down markets. We must also learn to manage risk in multiple directions. These are the macro themes of this week’s episode…

To learn more, check it out here: 

Given this week’s topic we are going to be conducting a special class, “Making Money In Any Market”.  If you would like free tickets to this 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!

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:  Thursdays at 3pm

◾960 The Patriot:  Saturdays at 1pm

◾1360 KPXQ:  Saturdays at noon

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

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

November 5, 2016: Can We Talk?

This week we dove deeper into the topic of what was likely to happen post-election, depending on who wins. Bottom-line, probably nothing good in either scenario…

We are at a point where there just isn’t much that anyone can do to turn this ship around. What would be required is much too painful and contrary to our current path that it is not politically practical. In order to give the appearance of progress, we will likely continue to try to prop things up with more debt, but all we are doing is delaying the inevitable. This means that outside of a possible Fed increase in December, I don’t think we will see interest rates rise for years, making retirement increasingly difficult for savers. Combine that with likely low returns for the stock market for the next decade or two, and you have a situation where the average person is not going to be able to live the retirement that they have planned. Therefore, this requires a change in strategy if you want to achieve your retirement goals. Times have changed and we can either adapt to this new reality or hope it adapts to us. (Hint, the first choice is much more likely to succeed…)

Check out this week’s show here:

Given this week’s topic I am going to be doing a special class, “Retirement Strategies for 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!

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:  Thursdays at 3pm

◾960 The Patriot:  Saturdays at 1pm

◾1360 KPXQ:  Saturdays at noon

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

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

October 22, 2016: That’s Debatable…

Well, the final debate is in the books and nothing has really changed…

As I said before the first debate, Mr. Trump appears to be done. At that time there was still a chance that between WikiLeaks and health issues that HRC might not win (if she had to step aside), but I just didn’t see a path for DJT. I still don’t. I also think HRC will now weather anything, no matter how negative, between now and the election. In my opinion there is a 99% chance she will be the next President.

Given that, we spent this week looking at what was likely to happen to the economy w/HRC in charge. Short answer, it’s not pretty (FWIW, it wouldn’t be w/DJT either.)

Times have changed. Significant organic economic growth is gone and unlikely to return. We are simply creating the illusion of prosperity through debt. This means that investment strategies like Buy and Hold that worked in the 20th century are no longer viable. Stocks are likely provide meager returns, as are bonds for the next 10-20 years. I don’t see significant increases in interest rates or economic growth for years to come.

In this show we discussed the implications of all this for your retirement. If you missed it, check it this week’s show  here: 

Given this week’s topic I am going to be doing a special class, “Trading and Investing 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!

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:  Thursdays at 3pm

◾960 The Patriot:  Saturdays at 1pm

◾1360 KPXQ:  Saturdays at noon

 

 

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

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

September 19, 2015:

This show was recorded Thursday, September 17th, between about 10 and 11pm, after the Fed announced that they would not raise rates in September. Not only that, for the first time that I noticed, there was some discussion of the Fed moving to negative interest rates, although that was not “seriously considered at this meeting”. However, one Fed governor did mark on the bubble chart that they thought that rates should be negative this and next year.

What does all this mean? Many things:

  • The US economy isn’t getting better (we got into specifics on inflation and jobs on the show)
  • The world economy is getting worse
  • If the Fed doesn’t raise in October (and I don’t think they will) I don’t see how they can raise before 2017. I don’t think they will raise during December (Christmas is likely to be weak again and they won’t want any blame for it) and they can’t raise during an election year without being accused of trying to influence the election.

The market still looks weak, but we will need to watch the action over the next few days. That said, I struggle to see what will take it higher.

This means that interest rates will likely stay low for years. This will make it exceptionally difficult for seniors who want to get good rates of returns on their investments to do so without taking significant market risk; risk that will come back to haunt them. Because of this, I am going to be teaching a special one day class: “How to prepare for and survive retirement in a zero interest world”. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about the class on the Next Week In Stocks website. Hope to see you there!

Click here to check it out:

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’s and Saturday’s at noon

◾1100 KFNX: Sunday’s and Tuesday’s at noon

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

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

September 12, 2015: A Perfect Storm

Despite some big up days, the market continues to weaken. We are now faced with a perfect storm:  high stock prices/valuations, weakening fundamentals, institutional withdrawal from the markets and massive retail margin debt. This cannot end well for the average retail investor, but there is a huge opportunity for the educated to make money on the downside. As we said last week, look for opportunities to short rallies, not opportunities to buy dips.

This show was recorded on Tuesday at about 10pm when the S&P was at about 1979, in the middle of a supply zone. We suggested on the show that the S&P would have a very difficult time getting above about 1993. In fact, the market moved right up to 1993 and then reversed down. Until we have a convincing close above 1993, the market will likely to continue to deteriorate.

On the radio it can be difficult to explain these ideas clearly so I am going to personally be doing a couple more special classes on this topic. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about the class on the Next Week In Stocks website. Hope to see you there!

Check out this week’s show here:

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:

◾960 The Patriot: Sunday at 10am

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

◾1100 KFNX: Sunday’s and Tuesday’s at noon

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

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