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Create Your Own ‘Retirement Symphony’

For lovers of classical music, there is nothing like the sound of a great symphony orchestra. It’s amazing to see a finely tuned group of musicians bring together the many different tools of their craft, including brass, woodwinds, strings and percussion, for the purpose of creating music that moves and inspires. Playing each instrument on its own may be nice, but, when brought together to work in concert with each other, the sounds can be amazing!

  • SEE MORE How to Know When You Can Retire

You can make YOUR retirement AMAZING by thinking about your plan in the exact same way. Over the years, you may have created your wealth by being a diligent saver and deferring many of life’s pleasures. You may have accomplished this by using a wide array of investment and insurance tools, such as company 401(k)s, IRAs, brokerage accounts, real estate, life insurance, annuities, CDs, etc.  Over time, you probably watched your net worth grow as the values of these tools individually each increased. However, as you prepare to cross that bridge into the retirement phase of life, you will be left to figure out how each of these “financial instruments” should be played together, to create your own “Retirement Symphony.” 

Here are three steps I encourage you to take to get your concert started:

1. Get in tune with a ‘Retirement Mindset’

This can be one of the most important foundational things you can do as you prepare for this journey.  Understand that if you created significant wealth throughout your career, you probably did so with an “Accumulation” mindset, focusing the majority of your efforts on being a regular saver and strategic investor using a wide array of tools and products. 

When you cross that bridge into retirement, however, your mindset should change from one of “Accumulation” to one focused more on the “Preservation and Distribution” of that wealth.  Investment growth is still a part of the equation, given that retirement could last over 30 years.  However, you should expand your thoughts beyond just investment strategies to thoughts about strategies to address a combination of things, such as:

  • Creating monthly income.
  • Preserving wealth that can last your lifetime.
  • Preparing for the high costs of care as you age.
  • Customizing your legacy.
  • And preparing for the possibility of higher tax rates in the future. 

2. Get to know your ‘Instruments’

It’s important to understand the capabilities of ALL your financial instruments and how you can maximize the positive things they were designed to do.  For example, ask yourself what you want from each of your investment accounts going forward. Is your goal to just get a specific rate of return each year because it looks good in traditional retirement planning simulations, OR is the growth you seek for a specific purpose? Those purposes could be for such things as immersing yourself in all your recreational “bucket list” adventures you’ve been dreaming of or just growing a portion of your wealth enough to reach your legacy goals.

  • SEE MORE Retirement Tips from World-Famous Authors to Live Happily Ever After

What about some of the insurance tools that you own? Do you understand how to maximize the capabilities of all the various annuities and life insurance policies you purchased over the years? Some examples for using these tools may include creating a lifetime stream of monthly income or having money that can be distributed tax free. In addition, these tools could also be an unknown way to pay for the cost of long-term care or provide the opportunity to leave a significant legacy to loved ones.

Whatever your desires are, understand how to maximize your financial instruments to create those sweet sounds.

3. Work with the right ‘Conductor’

With any award-winning symphony orchestra, the right conductor will certainly be the centerpiece to bring all these sounds together. Without them, perfection cannot be achieved. The same can apply to having the right person to be the “conductor” of your retirement symphony. 

If you have never worked with a financial adviser, the first thing you will need to determine is “when” and “if” you will relinquish the responsibility of your retirement plan design and oversight to someone else. For those who have grown their wealth on their own, this can be a difficult decision. However, ask yourself if you have the desire AND capacity to take on this responsibility as you get older. You may have enjoyed investing money and watching the market over the years, but are you ready to oversee the “Preservation and Distribution” phase of life? 

Once you have decided to hire a financial adviser, finding the right one is next.  Because the financial services industry is filled with thousands of advisers, here are a few things to consider:

  • Are they a fiduciary?
  • Does the adviser/firm specialize in retirement-specific planning?
  • Is the relationship planning-focused or product-focused?
  • How are they compensated for their services?

These are just a few of the many things to consider when determining who will be your  conductor … too many to list here!

Use these steps to begin creating your own sweet music and “Retirement Symphony.”

Investment Advisory Services offered through Trek Financial, LLC, (Trek) an SEC Registered Investment Adviser. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein.
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  • SEE MORE As You Approach Retirement, C.A.N. You Handle a Market Downturn?

Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime Membership

If you know how to take full advantage, the perks of having an Amazon Prime membership are vast. They include free two-day (or less) shipping, unlimited music and video streaming, and unlimited photo storage. The benefits of Amazon Prime have attracted approximately 200 million members worldwide. But it’s not for everyone. Say you’re a current Prime member but don’t place enough orders to benefit from expedited shipping, thought Amazon Prime Day 2021 was a dud, or if you don’t regularly use the other exclusive perks, it may be time to cancel Amazon Prime – especially with the annual fee rising 17% to $139 yearly ($180 if you pay monthly) on March 25 for current subscribers; that rate is already in effect for new members. 

  • SEE MORE Amazon Raising Annual Fees for Amazon Prime Membership

If you’ve indeed been pondering canceling your Amazon Prime account, but are stumped on how to do it, we’ll walk you through the steps you need to take to cancel your Prime membership.

Step-by-Step Guide to Cancel Amazon Prime

Step 1. After logging in to Amazon, go to the “Accounts & Lists” drop-down in the upper right portion of the homepage and click on the “Your Prime Membership” tab. This will take you to the “Manage Your Prime Membership” page, which highlights the type of membership plan you have, your Prime account’s auto-renewal date, as well as your member benefits.

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Step 2. On the “Manage Your Prime Membership” page, you’ll need to scroll down and click on the “End Membership and Benefits” tab located in the lower left portion of the page.

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Step 3. After clicking the “End Membership and Benefits” tab, you’ll get a prompt asking if you’re sure you want to proceed with canceling your Prime membership. If yes, continue by clicking the “End My Benefits” button.

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Step 4. Amazon won’t let you go without a pitch, of course. You will be shown another prompt trying to entice you to downgrade your annual membership to a less expensive version. This includes the monthly Prime plan where you get access to all of Prime’s perks for $14.99 per month. 

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Step 5. At this point, if you’re positive that you want to cancel your Prime account, click on the “Continue to Cancel” button. You’ll then get taken to a page confirming the cancellation. However, you’ll need to confirm whether you want to end your membership at that exact moment or on the date when the annual membership expires. To end it immediately, click the “End Now” button. 

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Step 6. Now, go back to your account page. The changes to your account should be reflected and show that you are no longer a Prime member. You should also receive an e-mail notification alerting you of the changes.

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Keep in mind that if you were a paid member (meaning you weren’t using a free trial) and used any of the Prime benefits once or not at all before canceling your account, you’re eligible to receive a full refund of the annual fee. You get a partial refund if you used Prime four or more times. You should see your refund credited back to the original form of payment used at registration within three to five business days.

  • SEE MORE 40 Best Amazon Prime Benefits to Use in 2022

Could Bitcoin Replace Gold as the New Safe Haven?

A growing number of people believe Bitcoin could soon replace gold as a safe haven against a depreciating dollar.  This, of course, is just speculation, but it is curious to see the exuberance of people regarding Bitcoin. 

Aside from the fact that there are a multitude of digital coins (assets), what’s unique about Bitcoin is the fact that its supply is truly fixed. Only 21 million bitcoins will ever be produced. So, considering there are an estimated 47 million millionaires in the world, if each of them wanted just one bitcoin, they couldn’t all acquire one. These supply limitations make Bitcoin bullish.

  • SEE MORE How Do I Spend My Bitcoin? (And Where?)

Gold on the other hand, has been a means of storing wealth for 5,000 years and is a real physical asset. It has always had value in times of geopolitical uncertainty and has many commercial uses. It is inert, making it for the ages, and with mining declining and demand on the rise, we can only assume that prices would increase.

Whether you lean digital or physical, at the core of the debate is a universal distrust of government, and rightfully so, in my opinion.  We have seen governments spend and print money at levels so outside of the lanes of being responsible that all we can do is observe and wait to see what happens next.

It is maddening as we watch currencies around the world collapse and regimes fail, it only fuels the appetite for finding ways to store wealth outside of governments’ grips. You have to ask yourself, what is the tipping point?

A History of Gold’s Value Comes Full Circle

When it comes to gold, we only need to look at history to know its viability, but aside from the historical price of gold, the historical events that influenced those prices are where our focus needs to be as we see things beginning to come full circle.

Gold has a very long history ,but we will pick up with the signing of the Federal Reserve Act in 1913. At the time, the country was facing a money supply shortage at the local bank level, and the idea of centralizing the banking system seemed the answer for controlling the elasticity of the money supply.

  • SEE MORE Why Are Bitcoin Prices So Volatile?

Then in 1934 the government was running short on money.  So, to increase the supply at the Federal Reserve, they raised the spot price of gold by 69% to $35 per ounce.  (It is important to note here that the dollar was backed by the gold standard at the time and in order to have more money, the price of gold would have to be higher.)  It wasn’t the printing we see today, but it shows the government’s ability to manipulate the currency.

I wrote about something similar the Romans did in my book, Common Sense.  Caesar Augustus trimmed the edges of the gold coins to harvest the gold in order to create a new set of coins. The result was a smaller coin with less gold but more coins to circulate. Well, we know how that turned out.

Stagnation, Then Inflation

Jumping to 1964, we see the Dow Jones average was around 800, and 16 year later was still hovering around 800. The reasons for the flat line were many: the Vietnam War, a heavy tax burden, rampant inflation and the lingering possibilities of a nuclear war between the Soviet Union and the United States. The convergence of all these things was preventing the economy from improving, and the markets remained stagnant.

In 1971, the government found itself with yet another money supply shortage, and their answer was to rid themselves of the one thing holding them back: the gold standard.  So, the government debased our currency from gold and converted it to a fiat currency. This allowed what we refer to today as the ability to print money without anything backing the stated value other than the government’s creditworthiness. 

After this conversion to a fiat currency, gold began a steady climb in value as the dollar began depreciating, reaching an average price of $614 in 1980, up from $35 in less than a decade. 

Hot Economy Hammers Gold

Then came the Economic Recovery Tax Act of 1981, which began an explosion of wealth that stretched through the 1990s.  The act reduced taxes and regulations. Later in the decade came the fall of the communist Soviet Union, which sparked optimism about the future and provided relief from the prospects of a nuclear threat or communist takeover. With a more optimistic view of the economy, as demand shrank, we saw gold prices decline, bottoming out in 2001 at an average price of $271.

Then in the early 2000s we saw a shift back to a loss of confidence when a series of events turned the tides and resurfaced insecurities of the past.  The tech bubble burst, the 9/11 terrorist attack, and the mortgage meltdown all occurred within an eight-year period.  The government once again turned on the printing presses, and free money began to circulate in an unprecedented fashion and hasn’t really stopped since. 

After the worst of 2008, the markets and our economy began clawing their way out of a gaping hole until the Tax Cut and Jobs Act of 2017.  From 2017 though 2021 (including COVID in 2020) the markets rose by 56% as a result of the tax cuts and deregulation, allowing businesses to expand and hire more employees. 

Back to the Future

Fast forward to today, we see the government aggressively spending money, and if we look at other countries that have traveled the road we are on (not unlike the Romans), we see that it ends badly. 

We must also be mindful of the fact that there is a serious rise in global tensions between China and the United States, and Russia and the United States that have an eerie resemblance to the Cold War.

I mentioned earlier that we were coming full circle.  What we have learned through this history lesson is that the government’s appetite for spending money is insatiable and has proven to erode our currency to what end?  This leaves the future of the markets, our currency and the future of our country uncertain as we venture deeper and deeper into unchartered waters. 

With All This in Mind, What about Bitcoin vs. Gold?

Which brings me back to the question, will Bitcoin replace gold as the new safe haven?  Lacking a crystal ball, I do know if this will happen, and neither does anyone else.  Quite frankly, I am not even sure if this is the right question to ask, but it is a lingering question and one that cannot be answered without understanding the history of our currency.

With all this uncertainty around us, we are certainty seeing a flight to safety, but if you are a diversified investor, perhaps you should own both gold and Bitcoin instead of debating about which is better. By focusing on things you can control, such as your allocation, you can participate if there are gains and limit your exposure if something goes south.  Hence, diversification.

Proponents believe that Bitcoin and its blockchain might very well rewire the entire global financial network based on the fact that bitcoin and blockchain, along with smart contracts and NFTs, are the most revolutionary technological innovations since the internet itself.  With that, it is safe to consider that it stands alone as its own asset class separate from gold.

But if one is steadfast in comparing the digital asset to gold, you could say that Bitcoin is the more convenient of the two to own, being that it is accessible via the internet at any time.  However, as a physical asset, gold can be held securely in hand free of internet outages or a hacking threat. 

I will conclude with this: Gold has always been a storage of wealth, and Bitcoin may very well be that in the future but is too volatile to replace gold at this time.  Instead look at Bitcoin as the technology of tomorrow, knowing that tomorrow is closer than you think.

One of the most important things to consider before buying gold, Bitcoin or other investments is knowing your risk tolerance.  Many people are unsure about how to articulate their feelings about risk and will often resort to using ambiguous words to describe their tolerance.  That doesn’t have to be the case for you.  You can have a precise score to describe your risk tolerance for free by taking my risk score quiz here.

Sources:
https://www.hoover.org/research/ten-causes-reagan-boom-1982-1997
https://www.washingtonpost.com/news/wonk/wp/2013/12/21/the-federal-reserve-was-created-100-years-ago-this-is-how-it-happened/
https://www.federalreservehistory.org/essays/jekyll-island-conference
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
https://www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years
https://coingeek.com/bitcoin-creator-dr-craig-wright-on-trickle-down-theory/
  • SEE MORE What Executives Can Learn from Odell Beckham Jr.’s Bitcoin Decision

Credit Card Interest Rates to Rise, Too

If you’re carrying a credit card balance, knowing your interest rate might seem like a no-brainer. Unfortunately, for many cardholders, it’s not. In a December Bankrate study, 41% of card-holders carrying a balance didn’t know their interest rate. Currently, the average interest rate on cards is about 16%, but rates can go as high as 25% or more. 

The Federal Reserve Board is expected to start raising short-term interest rates in March in an effort to keep inflation in check. As those rates increase, interest rates on credit cards, home equity lines of credit and other loan products will go up as well, which means it will cost you more to pay off your debt. 

If you’re carrying a balance on a high-interest-rate card, plan to pay it off as soon as possible, without adding any new purchases. If you receive a tax refund—and most taxpayers do—use that money to pay down your debt. Even if the refund doesn’t pay off the balance in full, the reduced total will trim the amount of interest assessed.

Another option is to apply for a balance-transfer card. Recently, cards from Wells Fargo, Capital One, Bank of America and others allowed balance transfers with an introductory rate of 0% for five to 18 months. You can also check to see if any current cards in your wallet are offering balance-transfer promotions. 

  • SEE MORE How to Nix Checking Fees

Chase, for example, recently offered current Freedom cardholders a 0% promotional rate for transfers made by March 31 (new applicants are no longer being accepted). The 0% rate lasts through the April 2023 billing cycle, with a transfer fee of $5 or 4% of your balance, whichever is greater. And you can’t transfer a balance from one Chase-issued credit card to another; the transfer must be from another financial institution or retail card. 

Keep in mind that with any balance transfer, if you don’t pay your balance by the time the promotion ends, any balance left over is generally subject to your card’s normal interest rate. And read the fine print—your balance could be subject to retroactive interest charges

Stock Market Today: Stocks Drop on Russia-Ukraine, Fed Uncertainty

Stocks were dragged lower for a second straight day after several U.S. officials issued warnings that Russia could attack Ukraine in the next several days.

Also, presentations by several members of the Federal Open Market Committee left investors wanting for more detail about the central bank’s impending tightening plans.

  • SEE MORE The 12 Best Financial Stocks to Buy for 2022

Among them was New York Fed President John Williams, who, while speaking at a New Jersey City University event, said “it will be appropriate to raise the target rate” in March but didn’t specify by how much.

Also in focus today was data from the National Association of Realtors that showed existing-home sales climbed 6.7% month-over-month in January to a seasonally adjusted annual rate of 6.5 million units.

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This was the biggest sequential rise since July 2020, says Jennifer Lee, senior economist at BMO. And the gains were broad-based across both categories of homes and regions in the U.S. According to Lee, this is likely indicative of “the rush to get in before borrowing costs move higher. The Fed’s communication has been crystal clear on that front … warning that higher rates are just around the corner.”

At the close, the Nasdaq Composite was down 1.2%% at 13,548, the S&P 500 Index was off 0.7% at 4,348 and the Dow Jones Industrial Average ended with a 0.7% loss at 34,079 – though all three indexes finished off their session lows.

As a reminder, the U.S. stock market will be closed Monday in observance of Presidents’ Day.

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Other news in the stock market today:

  • The small-cap Russell 2000 gave back 0.9% to end at $2,009.
  • U.S. crude futures shed nearly 0.8% to settle at $81.07 per barrel.
  • Gold futures slipped 0.1% to $1,899.80 an ounce.
  • Bitcoin fell 2.2% to $40,032.78. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • DraftKings (DKNG) plunged 21.6% after the sports betting company reported earnings. In its fourth quarter, DKNG reported a slimmer-than-expected adjusted loss of 35 cents per share on higher-than-anticipated revenue of $473 million. But the firm said it expects a fiscal 2022 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $825 million to $925 million, wider than what Wall Street is projecting. “DraftKings is facing intense pressure from newer entrants in the mobile sports betting space from established brands like Caesars and BetMGM,” says Jonathan Dube, executive in residence at investment bank Progress Partners. “Investors will be watching new state rollouts aggressively. The recent rollouts in New York and Louisiana have pushed off projected profitability from Q4 2022 to at least Q4 2023, according to the latest guidance, due to intense competition and high marketing costs.”
  • Roku (ROKU) was another post-earnings loser, shedding 22.3% after the streaming giant’s fourth-quarter results. ROKU recorded adjusted earnings of 17 cents per share for the three-month period, higher than the 9 cents per share analysts were anticipating. However, fourth-quarter revenue of $865.3 million fell short of the $894 million expected by Wall Street and the company offered up current-quarter revenue guidance below analysts’ consensus forecast. “After its relatively lackluster fourth-quarter results, ROKU sees global supply-chain disruptions and inflationary pressures still weighing on its 2022 active account growth and video monetization in some ad categories,” says CFRA Research analyst Tuna Amobi, who maintained a Hold rating on the stock. “Still, we think ROKU remains relatively well-positioned for an accelerated secular shift to streaming from traditional TV, likely to bode well for longer-term audience engagement.”

What Corporate America is Really Talking About

While the stock market may be worried about a potential Russian invasion of Ukraine, S&P 500 companies don’t seem to be.

“During each corporate earnings season, it is not unusual for companies to comment on subjects that had an impact on their earnings and revenues in a given quarter, or may have an impact on earnings and revenues in future quarters,” says John Butters, senior earnings analyst at FactSet.

  • SEE MORE 5 Super Stocks to Stave Off Sizzling Inflation

But in a search of all S&P 500 firms that had earnings conference calls between Dec. 15 and Feb. 17, “Ukraine” was cited in just 4% of those calls. “By contrast, 72% of S&P 500 companies have cited ‘inflation’ on earnings calls over this same period,” Butters adds.

While companies often have options in combating higher inflation, so too do investors. One potential way to guard a portfolio against inflation risk is with defensive, dividend-paying plays such as healthcare stocks or real estate investment trusts (REITs).

Another is to consider consumer staples stocks, which tend to hold up during periods of higher prices. Read on as we look at some of the best consumer staples stocks for 2022, many of which offer investors some level of defense against rising prices.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022

10 Biggest Losers in the S&P 500 This Year

The S&P 500 is off almost 9% for the year-to-date, but the biggest decliners in the main benchmark of U.S. equity performance are faring far, far worse.

From small, somewhat obscure members of the index to the planet’s best-known and biggest stocks, the S&P 500’s most beaten-down names do have at least a few commonalities.

  • SEE MORE The 22 Best Stocks to Buy for 2022

For one thing, they’re all well into bear-market territory, down at least 27% on a price basis for the year-to-date. Some of these stocks are suffering the flip side of having been among last year’s biggest winners. Plenty of stocks that rallied as pandemic or COVID-19 recovery plays in 2021 have seen much of their gains evaporate this year.

Additionally, inflation, interest-rate anxiety and geopolitical tension have been particularly hard on pricey growth stocks in 2022. This tense background and an abrupt shift in sentiment made for an unusually punishing earnings season. Woe to any company that missed Wall Street estimates – or worse – issued downbeat guidance.

Those are just some of the factors driving the price declines of the S&P 500’s biggest losers this year, which we list in the table below. But first, let’s take a quick look at some of the more notable entries.

  • Shares in Facebook parent Meta Platforms (FB, $207.71) lost more than 38% for the year-to-date through Feb. 17 after posting a disastrous fourth-quarter report. We learned that changes to Apple’s (AAPL) iOS privacy settings clobbered FB’s core advertising business. Meta users are fleeing its platforms for the likes of TikTok and other rivals. Making matters worse, the company issued a dismal outlook. And it’s plowing billions of dollars into the metaverse – a perhaps decade-long project with no guarantee of a payoff. FB has shed $356 billion in market value in 2022, dealing a big blow to the market-cap-weighted S&P 500.
  • PayPal Holdings (PYPL, $105.20) was the S&P 500’s biggest loser through Feb. 17, declining more than 44%. Quarterly earnings that missed Wall Street’s consensus estimate hurt, but more damaging was its shortfall in user growth. Worst of all, however, was PYPL’s scaled-back revenue and profit forecasts. High-priced growth stocks stand no chance in this market when they can’t deliver on expectations, both past and future. A series of analyst downgrades and price-target cuts only added to the selling pressure. “It will likely take several quarters of better results to restore investor confidence,” says Argus Research analyst Stephen Biggar, who recently lowered his 2022 profit estimate and price target but maintained a Buy rating on shares. 
  • Moderna (MRNA, $146.36) was one of the S&P 500’s best stocks in 2021, gaining 140%. But the higher they fly, the harder they fall. Shares are off more than 40% year-to-date as investors weigh the company’s fortunes on the other side of the pandemic. UBS Global Research initiated coverage of MRNA at Neutral (the equivalent of Hold) in late January, citing the potential of its drugs under development. “We think MRNA’s platform has significant applications beyond COVID-19, but that current levels reflect this potential based on the science to date,” analyst Eliana Merle says in a note to clients. “In the near-term, we think COVID-19 remains the key focus and a source of near-term volatility for shares.”
  • SEE MORE 10 Stocks Warren Buffett Is Selling (And 7 He’s Buying)

Have a look at the table below for the 10 worst stocks of the S&P 500 for the year-to-date through Feb. 17:

S&P Global Market Intelligence

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Is the Stock Market Open on Presidents’ Day 2022?

Most Americans are being treated to a three-day weekend thanks to the Presidents’ Day holiday … and that includes investors.

  • SEE MORE The 22 Best Stocks to Buy for 2022

The stock markets and bond markets will be closed on Feb. 21, 2022, in observation of Presidents’ Day. They will reopen on Tuesday following the three-day holiday weekend that commemorates the birth of America’s first president (and celebrates much more than that). That is, the holiday originally began as a way to honor Washington’s birthday – which is actually on Feb. 22 – and has since evolved to recognize Abraham Lincoln’s birthday (Feb. 12), and even simply honor all presidents, past and present.

In addition to being a stock market holiday, Presidents’ Day is also a federal bank holiday.

The following is a schedule of all stock market and bond market holidays for 2021. Note that regular trading hours for the New York Stock Exchange (NYSE) and Nasdaq Stock Market are 9:30 a.m. to 4 p.m. Eastern on weekdays. The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

2022 Market Holidays

Date Holiday NYSE Nasdaq Bond Markets*
Monday, Jan. 17 Martin Luther King Jr. Day Closed Closed Closed
Monday, Feb. 21 Presidents’ Day/Washington’s Birthday Closed Closed Closed
Thursday, April 14 Maundy Thursday Open Open Early close
(2 p.m.)
Friday, April 15 Good Friday Closed Closed Closed
Friday, May 27 Friday Before Memorial Day Open Open Early close
(2 p.m.)
Monday, May 30 Memorial Day Closed Closed Closed
Monday, June 20 Juneteenth National Independence Day (Observed) Closed Closed Closed
Friday, July 1 Friday Before Independence Day Open Open Early close
(2 p.m.)
Monday, July 4 Independence Day Closed Closed Closed
Monday, Sept. 5 Labor Day Closed Closed Closed
Monday, Oct. 10 Columbus Day Open Open Closed
Friday, Nov. 11 Veterans Day Open Open Closed
Thursday, Nov. 24 Thanksgiving Day Closed Closed Closed
Friday, Nov. 25 Day After Thanksgiving Early close
(1 p.m.)		 Early close
(1 p.m.)		 Early close
(2 p.m.)
Friday, Dec. 23 Christmas Eve (Observed) Open Open Early close
(2 p.m.)
Monday, Dec. 26 Christmas Day (Observed) Closed Closed Closed
Friday, Dec. 30 New Year’s Eve (Observed) Open Open Early close
(2 p.m.)

* This is the recommended bond market holiday schedule from the Securities Industry and Financial Markets Association (SIFMA). This schedule is subject to change.

Stock Market Holiday Observations

When it comes to the stock and bond markets alike, if a holiday falls on a weekend, market closures are dictated by two rules:

  • If the holiday falls on a Saturday, the market will close on the preceding Friday.
  • If the holiday falls on a Sunday, the market will close on the subsequent Monday.

Stock and Bond Market Hours

The “core trading” stock market hours for the NYSE and Nasdaq are 9:30 a.m. to 4 p.m. on weekdays. However, both exchanges offer premarket trading hours between 4 and 9:30 a.m., as well as late trading hours between 4 and 8 p.m.

Bond markets typically trade between 8 a.m. and 5 p.m.

The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

  • SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022

Stock Market Today: Markets Turn Tail as Ukraine Invasion Risk Rises

Ukraine-Russia tensions wrested control of investor sentiment from the Fed in a difficult session for the broader markets, which was exacerbated by a few pieces of disappointing economic news.

On Thursday, both U.S. President Joe Biden and British Prime Minister Boris Johnson warned that the shelling of a kindergarten in Ukraine’s eastern Donbas region might be a “false-flag operation” meant to give Russia an excuse to invade the country.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022

“The evidence on the ground is that Russia is moving toward an imminent invasion,” Linda Thomas-Greenfield, U.S. Ambassador to the United Nations, told reporters. “This is a crucial moment.”

Also sending stocks in the wrong direction were a few weak reports, led by initial unemployment claims that came in at 248,000 for the week ended Feb. 12 – well ahead of expectations for 219,000 filings and up from last week’s upwardly revised 225,000.

Also Thursday, January housing starts came in shy of estimates, as did a February reading of Philadelphia-area manufacturing activity.

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“Some of January’s dip in housing starts reflects especially tough winter weather. The January industrial production report released yesterday showed utilities output jumped nearly 10% from December, even after accounting for normal seasonal swings. The severe winter weather that hit much of the country in January held back housing starts,” says Bill Adams, chief economist for Comerica Bank. “But supply chain problems also continue to restrain housing activity; one illustration of the ongoing dysfunction in supply chains is the 25% monthly increase of softwood lumber prices in the January producer price index.

Investors skittered away from cyclical and growth sectors alike, with technology (-3.0%) and financials (-2.5%) leading the way down.

  • SEE MORE The 9 Best Energy Stocks to Buy for 2022

There was appetite for defense plays, however, with consumer staples (+0.8%) the day’s best-performing sector.

Losses accelerated later in the day, sending the Nasdaq Composite 2.9% lower to 13,716, followed by the S&P 500 Index (-2.1% to 4,380) and Dow Jones Industrial Average (-1.8% to 34,312).

“The S&P 500 has found some footing in recent days but the options market remains skittish,” says Michael Oyster, chief investment officer for asset-management firm Options Solutions. “The CBOE Volatility (VIX), often referred to as the market’s ‘fear gauge’ is in the top 15% of its history signaling concern among sophisticated investors. Both weekly and monthly options expire this Friday, which could further spike volatility.”

YCharts

Other news in the stock market today:

  • The small-cap Russell 2000 gave back 2.5% to finish at 2,028.
  • U.S. crude futures tanked 2% to settle at $91.76 per barrel.
  • Gold futures jumped 1.6% to end at $1,902 an ounce.
  • Bitcoin plunged 7.2% to $40,948.32. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • DoorDash (DASH) jumped 10.7% after the food delivery firm posted a 34% year-over-year jump in revenue to $1.3 billion and a 35% increase in total orders to 369 million. Plus, the company’s net loss narrowed from the year prior, to $155 million. “We think DASH is seeing sustained demand within the food delivery space while momentum in new verticals (convenience, grocery, and pets) (about 14% of sales) coupled with new merchants on the platform will support growth,” says CFRA Research analyst Angelo Zino. Still, the analyst kept a Hold rating on DASH.
  • Walmart (WMT) was just one of a handful of Dow Jones stocks to finish in the green, jumping 4.0% following the discount mega-retailer’s earnings report. In its fourth quarter, WMT reported adjusted earnings per share of $1.53 on $152.9 billion in revenue. Analysts, on average, were expecting earnings of $1.49 per share on $151.1 billion in sales. “We expect this momentum to continue in 2022 as consumers likely become increasingly price conscious, with inflation being at a 40-year high, noting WMT’s average price gap relative to the competition continues to widen versus pre-pandemic levels,” says CFRA Research analyst Arun Sundaram (Buy). “We also believe investors are underappreciating WMT’s evolving business model, including omnichannel transformation and its high-margin alternative profit streams (e.g., advertising is now over $2B in annual revenues).”

Find Opportunity in the Market Upheaval

The market is teeming with too many risks for volatility to just magically disappear. So for now, your best options are to defend against it – or use the dips as an opportunity to invest in longer-term trends on the cheap.

Among those trends on the skids is green energy, which despite generally growing long-term growth estimates has suffered of late; several popular green energy funds are off 40%-50% over the past year.

  • SEE MORE 5 Super Stocks to Stave Off Sizzling Inflation

So why now?

“Inflation and economic reopening have increased fossil-fuel prices, and alternative and clean energy returns typically rise in parallel with increasing oil costs,” says exchange-traded fund provider ProShares. “Clean energy was also a priority in the initial $2.2 billion White House infrastructure proposal, and policy tailwinds for increased spending remain.”

If you’re looking for somewhere to begin, consider this short list of 10 green energy stocks that might be down now – but are nonetheless poised to profit from an expected boom in expanded energy capacity for years to come.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022

Is the future now for Buzzy Tech Stocks That Took a Fall?

The market buzz of the past few years has been largely centered on futuristic companies with groundbreaking technologies that will “change the world.” We’re talking breakthroughs such as genomic sequencing, blockchain and metaverse infrastructure. Post-pandemic, these stocks went on a historic run and, alongside them, actively managed ETFs owning such stocks rode the wave higher.

But now some of those ETFs are down almost 50% from their highs. News like that naturally leads to two questions:

  • Why did this happen?
  • And does this crash present any opportunities for investors brave enough to capitalize on them?

First, Why Stock Bubbles Form

Most companies in this buzz-filled category share one thing in common – they are unprofitable. Why would anyone want to own a company that loses money every year? Well, because at some point in the future, there is a possibility that they will be wildly profitable. But it is incredibly hard to assign a value to a possibility and thus, when bubbles form, it is typically in stocks such as these.  The “dot.com” bubble of the late ’90s and early 2000s is a larger analog.

  • SEE MORE 66 Best Dividend Stocks You Can Count On in 2022

Why is this category more bubble prone? Because there is little burden of proof when making predictions of potential. It is much easier for a charlatan-esque ETF manager to make claims that will not be validated for another 20 years or more. They may be gone from the industry by then. The valuation of a boring consumer staple company with a track record of increasing profits and cash flows is more accurate, because the concept has already been proven. Thus, paper towel makers typically don’t get bid to nose-bleed valuations – and managers who own them don’t get famous.

What to Consider Going Forward

Over the past year, the most noteworthy “innovation” ETF crashed nearly 60% from its high to its low. Other tech innovators have also struggled. So, this most recent bubble has burst, what now?

  • SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022

There is rubble everywhere, in the form of innovative tech stocks way off their highs. Should you pick through them? Twenty years ago, some of our current megacap tech stocks were in that rubble and have surged thousands of percent since then. It is possible there are a few gems in this current rubble, the question is, can you find them? If you try, be sure to do your research because what may appear to be a “cheap stock” can always get cheaper, and some of these recent casualties may not be around in the future.

Alternatively, you could let the pros do it for you and buy one of the aforementioned ETFs that owns all of the rubble. The managers claim that each of their holdings will someday be highly successful but, in reality, whether they know it or not, they’re using something similar to the venture capital playbook – meaning that most of their ideas won’t pan out. In fact, only 8% of VC startups are successful, according to the Corporate Finance Institute. These VC investors rely on the few hot companies that do succeed to drive the returns, and the same will probably be the case for these ETFs.

If you plan to dip your toe in this category, do so with that understanding and have realistic expectations. Many investors burned by that 60% drop also watched that same ETF rally 380% post pandemic and might have thought, “This time it’s different – these stocks really will grow to the sky.” But in the stock market, it is rarely different.

* Securities and advisory services offered through LPL Financial, a registered investment adviser. Member FINRA/SIPC.

* Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All investing involves risk including loss of principal. No strategy assures success or protects against loss. ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF’s net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors. ETFs concentrating in specific industries are subject to higher risks and volatility than those that invest more broadly.

  • SEE MORE 5 Best Mutual Funds to Fight Inflation

Stock Market Today: S&P 500 Swings Higher After Fed Minutes

Stocks spent most of Wednesday in negative territory as investors mulled the latest Russia-Ukraine headlines.

Following Tuesday’s reports that Russia was withdrawing some troops from Ukraine’s border (which gave markets a boost), NATO Secretary-General Jens Stoltenberg on Wednesday said his organization has not seen any de-escalation. “On the contrary, it appears that Russia continues its military buildup,” Stoltenberg told a group of defense ministers from NATO’s member states at a meeting in Brussels.

  • SEE MORE 5 Super Stocks to Stave Off Sizzling Inflation

But the major benchmarks erased their earlier losses after the release of the minutes from the Federal Reserve’s January policy meeting.

“In markets, timing is everything, and the delayed reaction [to raise rates] from the Fed has investors convinced that aggressive policy tightening is on the horizon,” says Charlie Ripley, senior investment strategist for Allianz Investment Management.

And although today’s minutes did indicate the central bank is poised to raise rates at a quicker pace than it did during the last tightening cycle in order to combat surging inflation, “there was nothing in the minutes that suggested the Fed would be more aggressive than what the market has already priced in,” Ripley adds.

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While the Dow Jones Industrial Average (-0.2% at 34,934) and Nasdaq Composite (-0.1% at 14,124) still ended the day in the red, the S&P 500 Index (+0.1% at 4,475) managed to hang on for a win.

YCharts

Other news in the stock market today:

  • The small-cap Russell 2000 gained 0.1% to end at 2,079.
  • The Russia-Ukraine news sparked a fire under U.S. crude futures, which ended up 1.7% at $93.66 per barrel.
  • Gold futures rose 0.8% to settle at $1,871.50 an ounce.
  • Bitcoin slipped 0.2% to $44,120.38. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • Also in focus today was the latest retail sales data, which showed retail sales jumped by a seasonally adjusted 3.8% in January, much higher than forecast (though Kiplinger economist David Payne says the results come with an asterisk). “Retail sales and core retail sales both increased by more than expected in January, reflecting strong spending even after allowing for a boost from residual seasonal factors, and only a modest drag from Omicron on spending at eating and drinking establishments,” Goldman Sachs economists wrote in a note.
  • Roblox (RBLX) shares plunged 26.5% after the open gaming platform reported a fourth-quarter loss of 25 cents per share and bookings of $770 million. Analysts, on average, were expecting a slimmer per-share loss of 13 cents on $772 million in bookings. Still, RBLX reported 49.5 million daily active users, up 33% year-over-year. CFRA Research analyst John Freeman says he expects losses to “continue until 4Q22, driven by a somewhat troubling doubling of G&A and R&D expenses (ex-stock comp.) and a 47% higher expense related to the labor-intensive monitoring and security enforcement to ensure safe interactions on the platform, a key imperative given the majority of daily active users are still under 18.” However, he kept a Strong Buy rating on the metaverse stock.
  • Shopify (SHOP) was another post-earnings loser, sinking 16% after its results. While the e-commerce platform reported higher-than-expected earnings per share and revenue in its fourth quarter, it warned fiscal 2022 revenue growth would slow compared it 2021. “We expect merchant solutions to continue to benefit from strong growth in merchant sales, up 35%, and as Shopify Payments see greater penetration (49% of GMV vs. 45% a year ago),” says CFRA Research analyst Angelo Zino (Hold). “We also think Shop Pay Installments (buy now, pay later product) is seeing greater traction as it has proven to boost repeat purchases among first time customers by 23%. Despite decelerating growth, we remain encouraged by e-commerce trends and new growth opportunities.”

A Special Breed of Dividend Payers

With geopolitical uncertainty front and center, markets are likely going to remain volatile.

“In the short term, stocks are moving in lockstep with headlines from the Russia/Ukraine situation,” says David Bahnsen, chief investment officer at wealth management firm The Bahnsen Group.

  • SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022

He counsels investors to make sure their portfolios are well-constructed, with “high-quality stocks with strong cash flows and a long history of dividend growth.” There are many different corners of the market investors can look to find solid dividend growers.

The Dividend Aristocrats – companies that have raised their dividend payments annually for the last 25 years – is certainly a good place to start, as are the yield-friendly real estate, healthcare and energy sectors.

Another strategy is to home in on companies that consistently pay “special dividends,” or additional one-time payouts on top of their regular dividends. In any given year, there are typically only a handful of companies that reward shareholders with these bonus dividends, and these 10 names are shining examples of this special breed.

  • SEE MORE 22 Best Retirement Stocks for an Income-Rich 2022