Thursday, January 19, 2017

Inauguration May Be a Buying Opportunity

There seems to be "sell the inauguration" recommendation among some traders.  If so, I may use the opportunity to put some of our kids' funds into stocks or index ETFs. After all,our kids have a 6 to 14 year horizon before initially needing the money for college.  That will be sufficient time for good stocks or indices to recover, if there is an inauguration correction.

I will wait until after the inauguration speech before making any buys in our kids' accounts.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

Wednesday, January 18, 2017

Investing in Companies Based on Leadership

There are great examples of  the leadership of a single person making a significant difference in a company.  Some great examples are Bill Gates, Steve Jobs and Jeff Bezos.  Investing in their companies at the beginning or even at the midpoint would have resulted in significant profits.

Who might be the current great business leaders?  Here are my votes:


  • Reed Hastings, Netflix -  This CEO has shown tremendous resilience and innovation with a company that started out as a DVD rental site.   Original content, streaming content... what's next?  Netflix is at or near a 52 week high.

  • Kevin Plank, Under Armour -  This CEO has built a tremendous company based on a simple concept of innovative athletic wear.   It was a shining star for many years.  Lately, Under Armour has fallen out of favor with it's stock near 52 week lows.  However, I still have confidence.

  • Sheryl Sandberg, Facebook - The former Google exec and COO of Facebook, IMHO, has been the driving force behind Facebook's success.   Facebook is at or near a 52 week high.


  • To me, these are outstanding corporate executives that make it a good decision to invest in their companies.

    Disclosure:  We own shares of Netflix, Under Armour, and Facebook.

    For more on The Practice of Personal Finance, check every Wednesdays   for a new segment.

    This is not financial or investing advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Tuesday, January 17, 2017

    Prepare for the Worst, Hope for the Best

    "I am prepared for the worst, but hope for the best." ~ Benjamin Disraeli

    With the upcoming inauguration of Donald Trump, this may be a good time to be cautious and be prepared for the the worst, e.g. economic recession, stock market selloff, or a global trade war, which has been forecast by several pundits.  Who knows what may happen.   This may be a good time to have higher than normal cash/cash equivalents as a buffer, to purchase protective puts (downside insurance), or take some profits in select stocks should the worst economic scenarios happen.

    On the other hand, the Trump administration may perform well above (low) expectations, which lead to economic expansion and continuation of the bull stock market.   In that case, it would be good to own stocks and other assets such as real estate.    So it may also be a good time to hold onto core position should a positive economic scenario occur.

    In either case, it may be best to wait a few more weeks for the market to show some conviction in a direction.

    For more on Ideas You Can Use, check back every Tuesday for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Monday, January 16, 2017

    Gold and Real Estate

    I'm increasing my exposure to gold and real estate investments over the next few months.

    My rationale is that gold and real estate will benefit from most economic scenarios.   If the economy does significantly better, higher inflation will return and increase the value of assets such as gold and real estate.  In addition, rents will also increase.   If the economy does poorly, the Fed will implement more quantitative easing (QE4) and inflate asset values again.

    My plan right now is to buy gold miners and REIT stocks, primarily increasing positions in companies we already own.

    For more on Strategies and Plans Ideas, check back Mondays for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Sunday, January 15, 2017

    Waiting for Buy Points

    At this time, I am cautiously optimistic and making small purchases to add to or initiate new positions.

    My late father-in-law used to calculate a reasonable buy price for a stock, put in a good-til-cancelled limit order, wait until the order was filled.   Although he sometimes missed out on stocks that ran higher, his system was a good one since he consistently outperformed the S&P index on an annual basis.

    Lately, I've applied that approach to many of the stocks I am considering for purchase. However, I am not as rigorous at calculating a buy point based on fundamental factors. I base my target price on a combination of  technical factors and qualitative business assessments.

    Using this methodology, I've been able to acquire some stocks at or near 52 week lows, despite the indices being at or near all time highs.

    For more on New Beginnings, check back Sundays for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Saturday, January 14, 2017

    A Real Estate Investment That May Be Too Easy

    Becoming a landlord is just a click away posted at CNBC sounds too good to be true and leads me to think that a real estate bubble may be coming again soon for residential real estate.   When it's too easy to buy real estate and everyone is making money, it may be time to sell.

    For more on  Reflections and Musings, check back Sundays for a new segment.

    This is not financial or real estate advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Hedging Interest Rate Increase with REITs

    With the Fed indication of three interest rate hikes for 2017, the bond market and bond surrogate stocks (utilities, telecom, REIT) initially took a big hit.    However, as time passed, each of these asset classes began to recover.    Interest rates on bonds have declined from the peak and interest sensitive stocks have risen from their short term bottoms.

    I'm thinking the market no longer believes the hawkish talk will become reality.   Perhaps, it is the Fed just jawboning to keep the market animal spirits from becoming too exuberant and creating a bubble.

    In the past (e.g. 2014), it has been profitable to bet against aggressive interest rate hikes.  Perhaps it may be beneficial to do so again.   Last time, it paid off when I purchased some long (5-10 year CDs).  This time, I am considering buying REIT stocks, because I think REITs will benefit whatever interest rate do, whether they go up, stay flat, or go down.

    If the Fed stays with the three interest rate hikes, the economy is much stronger - a win real estate and REITs.  If the Fed made an interest rate head fake - higher interest/dividend paying assets such as REITs will rise.

    For more on Reflections and Musings, check back Saturdays for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Thursday, January 12, 2017

    What to Be When Grown Up

    When I was a child, it was pretty easy to decide a path to a job in adulthood.

    For me, it was going to college and then graduate school for a specific profession, in my case, medical doctor. This was the self-employed profession option. Or work for a large corporation from which I could retire.  This was the employee option.

    I eventually chose the employee option, after majoring in Chemical Engineering in college.

    Nowadays, I think it much harder for kids to choose a future career .

    The landscape of jobs in the future is a fast evolving one.   Who knows if the job will even exist in 10-15 years from now when my kids graduate from college.  And who knows what new jobs will be created that don't exist today. My daughter has no idea what she wants to be when she grows up.

    Maybe the new path is to own your future by creating you own job/business.

    For more on Crossing Generations, check back Thursdays for a new segment.

    This is not financial or career advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Wednesday, January 11, 2017

    Biotech Buying Opportunity?

    "Buy low and sell high." ~ Wall Street adage

    President elect Trump's comments about drug prices being too high at today's press conference has caused biotech and pharma stock prices to drop significantly.    Some stocks are at or near their 52 week low.

    Although risky, I think that some it may be worth buying some biotechs that are significantly beat down.   It may be worth selecting about 10 different biotech stocks into which to put new or additional funds.    And then selling out when the inevitable near term rebound occurs.

    For more on The Practice of Personal Finance, check back Wednesdays  for a new segment.


    This is not financial advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC

    Waiting for FOMO Indicator

    There is still a lot of cash on the sidelines.    I know of people who went to all cash prior to the election.  They felt the market would react negatively to whomever was elected   I  know people who went to all cash right after the election, fearing the ramifications of who actually got elected.   Some of these people are probably still in all cash.

    They are patiently waiting for the crash they are expecting.  They believe there will be a better time in the future to reinvest.   Maybe they are right.

    And maybe the market will just keep grinding up while they continue to predict a near term significant decline.   At some point, the FOMO (Fear Of Missing Out) factor will cause them to reinvest some funds.   Eventually, they will capitulate and put their maximum back into stocks.   Exuberance will return and then the market will crash.

    I don't think we are anywhere near FOMO or exuberance.  So no worries yet.   If the market should grind up 20-30%, I expect people with mostly cash will start getting back into the market.  Then I will be looking for a top and correction.   But I think that is still a ways off.

    For more on The Practice of Personal Finance, check back Wednesdays  for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2017 Achievement Catalyst, LLC