The bull market keeps running. Both the S&P 500 and the Nasdaq are now at new all-time highs.
Between November of last year and June 15th this year, the S&P 500 and the Nasdaq (top two lines) have moved sharply higher. Both the S&P 500 and the Nasdaq are at all-time highs. Notice how the Russell 2000 (bottom line) is still in a bear market – sitting about 17% below its previous high in November of 2021. This is another reminder of why you do not want to be investing in small cap stock funds.
The market has been pleased with the most recent reports on inflation and interest rates and the economy keeps plugging along. But inflation has not been tamed just yet and a recession could still be possible. With the markets at such high valuations, any bad inflation/recession news will likely lead to a significant decline.
Our customers have posted huge gains since November of last year as we have been “all in” on stocks. The S&P 500 has gained 28% since November 1st and the Nasdaq has gained 36%. And our customers can be extremely confident knowing that our Market Signals system will move them to cash if the market declines significantly.
When you have downside protection, you can be comfortable putting 100% of your money in stocks and getting the big gains in bull markets. You can also sleep better at night.
Without an investing system like Market Signals, investors are forced to shift money to lower performing and safer assets before the bull market is over or be willing to get crushed in a bear market decline.
Stay Disciplined My Friends.
Phil
Disclaimers The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.
Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.
The stock market is the best place to invest if you are seeking the highest long-term investment returns. Owning the best index funds will deliver long-term, annual investment returns of roughly 10%. But it will not be a smooth ride. Because the stock market is so irrational and volatile, the stock market might see gains of 30% in one year and losses of 20% in another year.
This volatility is the source of most of the biggest investment challenges we all face.
Before the introduction of our Market Signals Investment System, there were no good solutions to this problem.
The main solution of the investment industry has been Buy & Hold – simply riding out the inevitable storms. But riding out the bear market collapses is incredibly painful, financially and emotionally.
We didn’t think that made any sense at all, so we created Market Signals – A Better Way to Invest.
With Market Signals, you get the very high investment returns of the best large cap index funds AND you get protection against the big losses that happen in bear markets. You get the best of both worlds.
Losing less in bear markets equals higher overall returns. It is simple math. But even more important than generating average annual returns of over 14%, you will sleep better knowing that your money is protected against the huge losses when the stock market crashes.
A better than average 401K investor might generate annual investment returns of 7% per year which will only produce a retirement nest egg of $574,000 at age 65 and an annual retirement income of only $40,000 per year. Using Market Signals, that same investor could end up with a retirement account of $2,000,000 at age 65 and a retirement income of $250,000 per year.
see disclosures below
The system is simple and easy to follow. We do all the work for you by using our proprietary algorithms from our hedge fund to tell you what to invest in during bull markets and bear markets and sideways markets. Market Signals is so effective that it is rapidly becoming the go-to investing solution of financial advisors.
Subscribing to Market Signals only costs $39.95 per month and it comes with a 100% satisfaction guarantee. Other less effective investing systems cost $200 or more per month. We make it affordable so that we can help as many people as possible. Learn more by Clicking Here.
It is time to get off the stock market roller coaster and saving your retirement.
Be well,
Phil
Disclaimers The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.
Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.
In the world of investing, fees and expenses can significantly impact your bottom line. Whether you're a seasoned investor or just starting out, understanding the various fees associated with investing is crucial for maximizing your returns and achieving your financial goals. From management fees to transaction costs, each expense can eat into your profits if not carefully managed. In this article, we'll explore the different types of investment fees and expenses and their impact on your portfolio.
Types of Investment Fees and Expenses
Management Fees: These are fees charged by investment managers for managing your portfolio. Typically, they are calculated as a percentage of your assets under management (AUM). While management fees can vary widely depending on the type of investment and the manager's expertise, they usually range from 0.5% to 2% annually.
Distribution and Administrative Fees: These expenses cover administrative costs, marketing expenses, and other operational costs. These fees are often referred to as 12b-1 fees.
Sales Loads: Sales loads are commissions charged by mutual funds or brokerage firms when you buy or sell shares of a fund.
Transaction Costs: These are expenses incurred when buying or selling securities within your portfolio. They include brokerage commissions, bid-ask spreads, and other trading fees.
Advisor Fees: If you work with a financial advisor, they may charge a fee for their services, either as a percentage of your AUM or a flat fee.
Expense Ratios
Expense ratios represent the annual operating expenses of a fund expressed as a percentage of its total assets. Most investments bundle all of their fees and expenses into an expense ratio. This makes it easier to compare fees for different funds and investments. Lower expense ratios are generally preferred since they directly impact your investment returns over time. All of these fees and expenses are listed in each fund’s prospectus.
Examples
Let’s look at some examples of fees across some different investing scenarios.
A – Using an investment advisor that buys low-cost index funds
B – Using an investment advisor that buys mutual funds
C – Using an investment advisor that buys individual stocks
D – Buying low-cost index funds yourself
Net Returns after Expenses
It is important to be aware of all of the fees and expenses, but the most important figure is the net return percentage after expenses.
In the example above, the costs to use an advisor that buys mutual funds is the highest at 2.1%. But if this advisor is able to generate much higher returns (3% higher for example), the investor would still end up ahead even after deducting the fees and expenses.
This is very rarely the case, however. Higher fees don’t typically equate to better investment performance. In fact, the opposite is more often the case. Portfolios with higher fees and more complex investment strategies typically have lower investment returns.
As we have shown in our other blog posts, low-cost index funds generate higher investment returns and have the lowest expense ratios.
Financial advisors don’t typically purchase low-cost index funds for their clients because that approach doesn’t provide them with a justification to charge their 1% investment management fee. This is why financial advisor either buy individual stocks for their clients or create complex portfolios comprised on many different assets (stocks, bonds, commodities, etc.).
Using historical performance data, let’s look at the net returns after expense for the four scenarios above. As you can see, the Do-It-Yourself investor can generate the best results if they know how to pick the best low-cost index funds. The DIY investor can generate net investment returns that are almost 50% better than Advisors who buy mutual funds or individual stocks.
These differences in net returns after expenses are a big deal – potentially a difference of millions of dollars over 30 years.
Investing fees and expenses can significantly impact your investment returns over time. By understanding the different types of fees, their impact on your portfolio, and strategies for minimizing them, you can optimize your investment strategy and achieve your financial goals more effectively.
Be well,
Phil
Disclaimers The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.
Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.
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