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Financial Planning
Take any hundred people at the start of their working careers and follow them for 40 years until they reach retirement age, and here's what you'll find, according to the Social Security Administration:
1 will be wealthy, 4 will be financially secure, 5 will continue to work because they need to, 36 will have already died, and 54 will be broke living off Social Security and help from family. 5% are successful while 95% are unsuccessful. Care to guess which group had financial planning?
Clients pay thousands of dollars a year to have a financial plan run for them at my investment bank, we include this benefit to you for no cost. If you would like us to put a plan together for you and your family so you can get closer to being in the 5%, shoot me a message on GroupMe saying "planning" and we will show you the simple steps to get you to your first your first million.
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Broad Market Outlook
Another week of new all time highs, as the Santa Claus Rally seems to be counting into year end, if you have been with us for at least a year then you remember how last year the market was served a big bag of coal into year end. After the horrible end of 2018, we were gifted with one of the best markets (broadly) that we have seen in a decade.
Now in the short term, as we know new highs, tend to get met with new highs until they don't. We have done a great job in the past at stepping aside when the market does get rocky. Just have your ears open, when your idiot friend starts "telling" you to invest in the market because it has to go up. That is when we need to start selling.
Scanning all of the major markets and sectors, other than an actionable set up in VDE, all of the other major sectors its very hard to blindly buy up here. For people on the side lines its an even harder task.
Respect your stops, focusing on holding your winners a bit longer, and don't get too comfy! Just when we do, the market pulls the rug out.
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Next Trading Experts Meet Ups!
January 9th Vermont
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Macro Rotation Outlook
Dow Jones
New highs!
SPY
New highs!
Nasdaq
New highs getting met with new highs!
MDY Mid Cap Stocks
Mid caps running into the retest of the prior high and we know what tends to follow suit.
IWM Small Caps
Longer we continue to hold above 160, the better!
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We are looking to bring on one more mentor, if you are interested or can recommend a member who you think could do a good job at it please let me know!
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Sector Rotation
Key points
- Best suited in a taxable account
- We are willing to hold positions against us as overall sectors and markets are much less volatile than individual names.
- We are buying or adding (dollar cost averaging) when there are actionable set ups.
- We are selling for either profit or getting out for break even if better opportunities arise elsewhere in other sectors.
- If you have more than $50k, we can set this model up for you
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Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
225 stop
VDE Energy
80 DCA
VIS Industrial
150 stop
VOX Telecom
Hand sitting time as telecom takes 2 steps forward and 1 back each week.
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Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
128 stop
VCR Consumer Discretionary
180 stop
VFH Financials
72 stop
VNQ REIT
Seems the start of lower highs and lower lows is starting to show its face, avoid.
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Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
156 stop
VHT Healthcare
183 stop
IBB Bio Tech
116 stop
VPU Utilities
135 stop
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The New Big Picture Set Up
PSXP
This PSXP has been basing for a few years now and we can see how this 57 level has been resistance for quite some time, to give this name $3 room for now seems to be the proper out.
12 Month Target $80
Entry $57
Stop $54
