Millennials Are Becoming Boomers…
What Does It Mean – Millennials, once criticized for their financial habits, are now following similar life patterns as previous generations. Despite initial delays, millennials are buying homes and accumulating wealth, primarily through real estate. They have experienced significant wealth gains, surpassing baby boomers at the same age. The article highlights the evolving financial landscape and the potential for millennials to become the wealthiest generation due to higher education levels and eventual inheritance from baby boomers.
How To Stay Sane When Markets Get Wild…
What Does It Mean – Market volatility often leads to a flood of explanations and predictions, but it’s crucial to think critically and stay focused as a long-term investor. Recent market turbulence saw dramatic drops and rebounds in Japanese and U.S. stocks, with the VIX index spiking and then falling. Explanations ranged from hedge fund actions to economic fears, but the simplest reason is human behavior’s unpredictability. Financial marketers exploit emotions, using alarming statistics without context. To stay calm, always consider the full picture and question sensationalist claims. Understanding the broader context helps maintain stability amid market chaos.
Where Are The New Lows?…
What Does It Mean – Despite recent market volatility, there hasn’t been a significant increase in new 52-week lows. The VIX index spiked dramatically, yet few stocks hit new lows, likely due to the recent surge in new highs. Shorter-term lows have increased, but not to alarming levels. Oversold conditions, typical in bear markets, are not prevalent across large, mid, or small-cap stocks. Monitoring market breadth is crucial to identify potential bearish trends. The current environment still shows stocks performing well, with some traders achieving substantial gains despite broader market declines.
This is Normal…
What Does It Mean – Market corrections are a normal part of investing, occurring almost every year. The recent volatility, with the S&P 500 down nearly 6% and the Nasdaq 100 in an 11% drawdown, follows an unusually calm period. Historically, the average annual drawdown is around 16%, and even years with double-digit gains often experience significant corrections. Investors should expect and prepare for these fluctuations, as volatility is inherent in the stock market. Despite short-term drops, long-term gains are common, with the S&P 500 up nearly 13% this year, highlighting the importance of maintaining a long-term perspective.
Half a house for half a million dollars: Home crushed by tree hits market near Los Angeles…
What It Means – Newly listed for sale in Southern California’s notoriously pricey realty market: half a house for half a million dollars.
The one-bedroom, one-bathroom bungalow in suburban Monrovia, northeast of Los Angeles, was crushed by a tree in May with two renters and two dogs inside. There were no injuries, but a fence and most of the roof were mangled.
Now what’s left of the property — with missing walls, hanging wires and no ceilings — is for sale at $499,999.
Listing agent Kevin Wheeler quipped that it’s an “open-concept floor plan.”