Monthly Stock Market Report – August 31, 2014

Stock Market ReportGood Time to Buy Ashford Hospitality Trust (AHT)

August turned out to be an important rally-extending month. The U.S. stock market recovered from its July malaise (down 1.05%) and gained 3.89% in August. The market achieved this excellent performance despite the on-again off-again Russian/Ukraine conflict. While the situation in the Ukraine remains a major concern, markets worldwide have come to the conclusion that neither side wants an escalation that could jeopardize long-term economic recoveries. However, given the mercurial nature of the leadership of both sides, this situation bears close monitoring. And if the situation deteriorates, we may take defensive actions to protect our gains.

Meanwhile, economic data continues to show slow but steady positive trends. As a result, the stock market continues its rally mode of the last 5+ years. September begins the last quarter profits reports, which should be mostly positive. As such, we see no need to change our TSOA retirement account allocation models.

Our Fun Stocks Index continues to perform well with Discovery Communications (DISCA) effecting a two-for-one stock split in August. We encourage our readers to continue to accumulate shares of the holdings in our Fun Stocks Index. We also strongly urge readers to accumulate the excellent travel stocks that we pointed out in our July 2014 blog.

For income-oriented investors who want to benefit from rising hotel rates and stronger demand, especially from a growing well-heeled aging population who wants to travel, we encourage a position in Ashford Hospitality Trust (AHT). AHT is a Real Estate Investment Trust (REIT) that owns high-end hotels (Hyatt, Marriott, Hilton, etc.) and pays a nice dividend of 4.19%. We believe that AHT can generate capital gains, and its dividend can increase over time.

Please note: Jim Tso and his clients own shares of AHT.

Good Investing!

Jim Tso

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The Stock Market’s Stealth Corrections April 2014 was a strange month for the stock market. Mixed results and significant corrections were hidden by the misleading appearance of a market that held steady, based on the 1.9% year-to-date (YTD) increase in the S&P 500. Underneath the steadiness of the broad markets, key sectors of the market […]

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Monthly Stock Market Report – March 31, 2014

Managing Risk is Essential to Investment Success The month of March 2014 was an important test for all global equity markets, especially the U.S. stock market. With the threats from the on-again, off-again Russia/Ukraine geopolitical conflict and the confusing U.S. Federal Reserve (Fed) monetary policy statements, it’s a wonder that a significant correction of 10% […]

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Monthly Stock Market Report – February 28, 2014

Stock Markets Recover in February; Fun Stocks Index Achieves Historic Milestone: Up 704.25% since January 1, 2009  – “Creaming” Major U.S. Indexes February 2014 proved to be a positive month for the U.S. stock market. The S&P 500/SPY was up 4.6%, allowing it to recover from the January losses of 3.5%. As a result, the […]

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Although we’re well into the New Year, it’s not too late to make and implement 5 essential money-related “resolutions” to achieve a better financial future. Here are those resolutions and some suggestions on how to implement them: 1.  Structure your investments to increase your returns. Action items include the following: Achieve the best allocation formula […]

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Special Stock Market Report – February 10, 2014

Major Indexes Down; Fun Stocks Index Up – Sets Another Record Fun Stocks Index Gains 645.90% in 4+years; Up 2.58% Year-To-Date After gaining a record 76.44% in 2013, the Fun Stocks Index of 15 high growth companies created by Jim Tso on January 1, 2009, reached another record high (up 645.90% for 4+ years) on […]

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