The exchange traded funds most widely followed that represent the health care, energy, materials and real estate sectors are showing the most late-year weakness, based on price chart performance. Lots of factors are work. The most likely factor affecting all of these is the sense that interest rate cuts by the Fed have ended. Breaking out sector performance can be deceptive: in some cases, it may that just one or two stocks in the ETF may be so underperforming that it weighs the entire group down more than might be expected. Nevertheless, these price charts are worth examining for any…

The suits on Wall Street will say that $460K isn’t enough to retire on. Well, that “modest” nest egg will earn $64,860 in dividends alone when invested in this simple 7-CEF portfolio. CEFs are the code name for closed-end funds. They are a lesser-known cousin to exchange-traded funds (ETFs) and mutual funds. CEFs tend to have modest assets under management. Which is their superpower. Fewer assets mean greater yields! Consider the 7-CEF portfolio we are about to discuss versus the standard high-yield stock benchmark ETF: There is no comparison! But before we buy blindly, let’s do our homework and make…

If you are employed at a company offering a 401(k), you’ve probably received a fair number of notices regarding your plan. This happens particularly often toward the end of the year. If you’re unfamiliar with the ins and outs of 401(k)s, you may not know which notices should move you to act and which are purely informational. This article discuses how to understand the types of 401(k) notices and when to act. Automatic Enrollment Notice Many 401(k) plans today automatically enroll employees at a specific contribution level once they are eligible to join the plan. You may even be enrolled…

Very bad news. The Trump brand has topped out. Sure, he is President-elect, but the political reality of a three-branch government just upended his first major attempt to rule. It shows his campaign promises are not assured. Issues like deporting millions of residents and their families, and increasing tariffs, even on important trading partners like Canada and Mexico. The House and Senate, with their small Republican majorities, have control over most of what Trump wants to do. Therefore, the initial House defeat of the Trump/Musk bill sets the stage for the need of Trump to negotiate, not dictate. Fundamentals are…

Inflation concerns are on the rise again. The Federal Reserve’s latest Summary of Economic Projections showed central bank officials see inflation potentially ending in 2025 at 2.5%, above their previous forecast of 2.1% and higher than their 2% target. There is a growing possibility of a resurgence in consumer prices and investors should consider adding inflation protection to their portfolios. The employment market is strong, economic growth is exceeding expectations, and potential inflation-inducing changes in fiscal and immigration policy loom large. The bond market has already accepted that the Fed may not further ease monetary policy. Ten-year Treasury yields have…

Goodbye to overwrought speculation – Hello to enlightened reality. When? Likely right away as delayed tax-driven selling starts in January. Why? Because optimistic excitement always gives way to sensible analysis. When easy money gains reverse, speculators exit. Where? Mainly in stocks, but bonds, real estate, and cryptocurrencies are all game, as well. From my previous article, “2025 Outlook – Expect A New Investing Cycle,” here is the list: Bond market – The “bond vigilantes” have returned to reset interest rates to reality. That means investors should focus on economic and financial fundamentals, not the Federal Reserve. Stock market – The…

As I write this, the S&P 500 is sitting on a 28% total return for 2024. And of course, that could shoot even higher if we get the traditional Santa Claus rally. Obviously, that’s been great for the equity funds we hold in CEF Insider, which give us price gains from their stock holdings, of course—but they also give us a huge slice of our gains in cash, thanks to their outsized yields. But at times like this, we do need to take a step back and consider what’s going on behind a historic gain like this. While corporate earnings…

a Successful Investors’s Goal is Making Money, not Caring How or Where it’s Made. I was fortunate to have several mentors early in my investment career that taught to me valuable financial knowledge. As a Forbes writer and co-host of the ABC talk radio show, “Winning with Winans”, I take my media responsibilities serious in providing sound investment advice to my audience in a turbulent year. I call myself a historian who manages money which means I never think, “it’s different this time”. As I review my last twelve months of Forbes articles, these are the most important time-tested lessons…

Happy New Year, all. My overall macro theme for 2024 was An Expansion of the Rally. The theme ultimately proved to be accurate, as the dominance of the Magnificent 7 stocks (Nvidia, Apple, Microsoft, Amazon.com, Alphabet, Tesla and Meta Platforms) dissipated during the second half of the year as the other “Not So Magnificent 493” stocks (i.e., the remaining stocks of the S&P 500 Index) took over the leadership role. The Magnificent 7 accounted for 62% of the total return of the S&P 500 in 2023, and 59% during the first0 half of 2024, but just 9.2% during the third…

A government shutdown could begin early on December 21, though discussions continue on a potential resolution. Forecasting site Kalshi currently estimates the chance of a shutdown at 40%, with the precise measure used being that the government is shutdown at 10am ET on any given day. Government shutdown risk last surfaced in September 2024, but a shutdown was narrowly averted. A short government shutdown is unlikely to have major economic impact, aside from the considerably uncertainty that results. However, were any shutdown to lengthen beyond a few days, then the economic impact would likely become more significant. Typical Shutdown Length…