Monthly Stock Market Report – June 30, 2015

A Real “Greek Tragedy” Unfolding

Stock Market ReportUnlike the mythical accounts of personal tragedies as depicted in ancient Greek culture and famous writings by Sophocles and others, a real Greek tragedy is unfolding as recent national events and decisions in Greece are leading that nation into a long-term financial calamity. Creditors have required the current Greek socialist government to accept certain austerity measures that could save the country; the fact that the Greek government refuses to do so is the real tragedy. How will this avoidable tragedy adversely impact the rest of Europe, the U.S., and other global economies who do business with Greece? We believe the impact will be minimal and in fact, may cause a better short-term buying opportunity for investors focused on the improving U.S. economy and quality investments in U.S. stock markets.

In June, the U.S. stock market as represented by the S&P 500 Index lost 2.1% and realized a minuscule gain of +0.2% year-to-date primarily due to the most recent events surrounding the Greece bailout negotiations. While the drama will continue into July, the negative dynamics of both sides raise expectations that Greece will leave the European Economic Zone rather than accept the austerity pain brought upon itself by many years of leftist government overspending. It appears that the unfortunate people of Greece are led by a suicidal socialist government hell-bent on self-destruction. The good news is that Greece may be the spark that causes an overdue U.S. stock market correction (as we said could happen in our May Monthly Stock Market Report). If so, we believe an excellent buying opportunity will result. It is most important for investors to stay calm – do nothing – and simply watch this “Greek tragedy” play out. Get a free registration here to stay atop these developments and our views.

Since our TSOA Retirement Allocation Models are based on a sound dollar-cost averaging investment method, we suggest investors maintain their asset allocation formula and add to their portfolios in our models despite this “real Greek tragedy.”  In addition, we suggest that investors add to their holdings from our recent “buy” recommendations (i.e. CCL, NCLH, RCL, GE, SIX, and others listed in our earlier Monthly Stock Market Reports back to June 2014) in case better prices in these U.S. stocks occur during any short-term “correction” period. Also continue to avoid WYNN, LVS, and MGM.

Good investing!

Jim Tso

Monthly Stock Market Report – May 30, 2015

Avoid “Fun” Casino Stocks (WYNN, LVS, MGM) for Now The S&P 500 squeezed out a 1.05% gain in May despite economic data that showed a contraction in the U.S. Gross Domestic Product (GDP) for the 1st quarter of 2015. This gain was due to the hope that 2015’s 1st quarter GDP contraction would be transitory […]

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Monthly Stock Market Report – April 30, 2015

Stocks Trapped in Trading Range. Buy GE with 3.2% Yield In April we were pleased that all three major stock market indices hit record highs during the month, spurred by slightly better earnings reports. However, as more earnings reports trickled in at the end of the month, all major stock market indices retreated from their […]

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Monthly Stock Market Report – March 31, 2015

A Loss Month…A Ho-Hum Quarter. Buy “Fun Stock” Six Flags (SIX) for Growth and Income (4.3% Yield) The U. S. stock market for March could best be described as a “yo-yo” market! Unlike a “roller coaster” market with somewhat smoother ups and downs, March was up strong one day and vigorously down the next day. […]

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Monthly Stock Market Report – February 28, 2015

A Big Rebound but Proceed with Caution; PLUS Our Fun Stocks Index Is Changing A big 5.5% rebound sparked by better-than-expected corporate earnings in the S&P 500 Index in February wiped out its 3.1% loss in January. As such, the S&P 500 is up 2.2% year-to-date. Investors, who maintained their asset allocations in stocks benefited […]

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Monthly Stock Market Report – January 31, 2015

Stock Market Volatility Not for the Faint-Hearted U.S. stock market action during January 2015 was very volatile, with 14 of out 20 trading days resulting in up or down moves of around 1% in the S&P 500 Index. In fact, January 2015 marked the most volatile month in the last 5 years. Investors could not […]

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Forced IRA Rollovers: Are You a Foolish Ex-Employee?

Is your head in the sand?

How many jobs have you had in the last 5, 10, 20 or so years? Did you have a vested 401k or 403b with each job? (A 403b is a retirement account with a non-profit employer.) Did you roll over ALL your 401k/403b accounts from ALL your former employers into a rollover IRA account (or […]

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Monthly Stock Market Report – December 31, 2014

2015 Outlook Positive with Cautions The U.S. stock market action in December 2014 was nothing to write home about. In fact, it was a small month-to-month loss due to usual low-volume stock trading losses just prior to New Year’s Day. While the 2% loss from December’s final days of volatility may not be too scary, […]

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Monthly Stock Market Report – November 30, 2014

November Rallies with a Warning about Energy  5 Reasons to Buy Royal Caribbean (RCL), Carnival Cruise Lines (CCL), Norwegian Cruise Line (NCLH), and Disney (DIS)! The November stock market was most unusual in that 14 of 19 days of trading (or 74%) resulted in gains. As positive U.S. economic data and pledges of continuing stimulus from Europe […]

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