Monthly Stock Market Report – June 30, 2014

Stock Market ReportHow to Profit From the “Boomer Era”

June was a good month for the U.S. stock market with the S&P 500 gaining 1.87% and all the major indexes (Dow Jones 30, NASDAQ 100 and S&P 500) achieving record highs. With an economy that is ”not too cold and not too hot” supported by an accommodating Federal Reserve, a bullish trend should continue into the second half of 2014.

As such, we will maintain our Asset Allocation formula as indicated in our updated TSOA Freedom Portfolio Asset Allocation for Retirement Accounts Models. In addition, we will continue our emphasis on investing more in value-oriented equity investment choices rather than growth-oriented equity choices.

Investors should also look to longer term investing mega-trends, such as the economic and financial impact of Boomers and those who are age 50 plus in other developed countries. Boomers are currently described as those who are between age 50 and age 70. Here are three key economic factors to consider when looking to profit from the Boomers’ impact on the American and world-wide economies:

  • The amount of investible assets owned by investors age 60 and older will grow from $87 trillion to $400 trillion by 2050.
  • Healthcare needs, especially for new medications, will explode as the world’s population of 60-year olds will increase from 11.7% of the overall population to 21.1% in 2050.
  • U.S. Boomers account for 85% (and growing) of the global luxury travel expenditures (think companies that provide or own cruises, tours, vacations, hotels, airlines, etc.).

Given the above, we suggest investors seriously investigate and consider allocating a portion of their equity portfolios to:

  • A portfolio of entertainment (or “fun”) stocks as represented by our Fun Stocks Index, which has gained 650% since January 2009, beating all the major indexes since that date.

All of these investment choices should continue to perform well as part of the Boomer mega-trend for the near future as well as the next 35 years of the “Boomer Era”!

Good Investing!

Jim Tso

Monthly Stock Market Report – May 31, 2014

Value Trumps Growth We are now 5 years into a stock market rally that reflects economic growth that can best be viewed as “good enough.” And this stock market complacency may continue as the S&P 500 inches up to new record highs. The true strength of the market, however, lies underneath the headlines — where […]

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Monthly Stock Market Report – April 30, 2014

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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Anytime is a Good Time For Money Resolutions

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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Monthly Stock Market Report – January 31, 2014

A Healthy Small Correction or Start of a Big Drop?  Fun Stocks Index Holds Up Well with Minor Drop The 2014 stock market started with a dud, as January produced a loss of 3.55% as represented by the S&P 500. Among the negative factors that adversely impacted the market were: Profit-taking by money managers who […]

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December 2013 Year-End Stock Market Report

An Amazing 2013 Investment Year: Great for Stocks but Lousy for Bonds. Fun Stocks Index Breaks Records (up 76.44% for 2013 and up 627.07% in 4 years since January 1, 2009) 2013 is over. And if your portfolio was heavily allocated to stocks, you are a “happy camper.” S&P 500 and Dow Jones stock indexes […]

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