Last week was very volatile in the world of finance. Certified Financial Planner Paul Fain narrates the highs and lows of the first week of 2019.
LET’S START WITH THE GOVERNMENT SHUTDOWN, HOW DOES IT IMPACT THE STOCK MARKET?
- Generally causes a DOWNTURN. It is negative.
- Historically, the downturn is TEMPORARY and bounces right back after the shutdown ends.
- The most stress is on Federal workers with no income to pay rent or mortgage bills.
APPLE IS IN THE HEADLINES, THE STOCK IS GETTING HAMMERED …
- Stock price down 35% in the past three months.
- Revenue off expectations by $7B!
- Weaker iPhone demand in
- Fewer carrier subsidies.
- Customers taking advantage of battery replacements.
- Dangerous play for a quick buck – it is difficult to catch a falling knife.
- Great company but it needs to innovate/expand products.
- Warren Buffet owns it! So do most investors in their core mutual funds (top holding in many funds).
ANY FINANCIAL NEWS IN THE “WIN” COLUMN?
- US Jobs report: 312,000 jobs were added last month (Wall Street analysts had anticipated an increase of about 180,000).
- Higher rates for savers. (check out online banks, CDs, short-term U.S. Treasuries)
Extra visual if desired:
Looking for customized investment advice? We would love to help you! Reach out to us today.
