With recent market volatility and the next crisis du jour seemingly looming ahead, insurance companies are ramping up advertising, and capitalizing on the fears of investors. The laundry list of guarantees and flashy marketing materials can certainly appeal to investors who fear recent market turbulence – but what’s the catch? Let’s take a look at what investors must know when considering the purchase of an annuity.
You and your emotions – friends or enemies?
Have you lost sleep over your investments lately? If so you are not alone.
With all the complexities and nondescript jargon surrounding the financial markets, it is easy to forget that they are still driven by the same thing they always have been; buyers and sellers. Each with their own opinion on what the market is going to do next. While in the long term, stock prices are primarily driven by earnings, in the short to medium term, stock prices are greatly controlled by the fear, hope, and greed of stock market participants
Capital Appreciation or Cash Flow
Traditionally, investors have relied on investments based on the objective of capital appreciation. When you’re investing for capital appreciation, you buy an asset in hopes it will go up in price so you can sell it for more than what you paid for it sometime in the future. The profit you make is called capital appreciation.
So Many Options
As you’re probably very well aware, the Snider Investment Method is at the center of Snider Advisors’ business. It is the primary tool we use in our asset management services and the cornerstone of all of our financial education courses. Of course, people often ask. “What is the Snider Method?” When we say, something like, “the Snider Method is a long-term investment strategy that focuses on producing portfolio income through a specific system of using stocks, options, and cash management techniques, we can tell they’re right along with us until we mention the “O” word…options.
Invest with Attitude
We can all agree that attitude is one of the biggest predictors of success. Yet when it comes to investing, many people continue to have attitudes of confusion, fear, anger, and even apathy. Changing your attitude is the first step in creating successful investment outcomes.
Stock Basics: What is “the market?”
You’ve probably heard talk on the news about how the market was up or down. When people discuss “the market,” they are actually referring to a market index. A market index measures a specific section of the stock market and helps investors evaluate how well the market, or at least a particular section of the market, is doing. Although there are a number of indices, the three that are most commonly referred to and quoted are the Dow Jones Industrial Average, the Standard & Poor’s 500, and the NASDAQ Composite Index.
