Q.  Is September statistically the worst month of the year for the financial markets? A:  Yes, according to the Stock Trader’s Almanac. Most investors tend to answer October because of the 1987 and 1929 crashes.   Q:  Why the rocky start to trading in the equity markets this September? A:  Recently, CNBC cited U.S. manufacturing activity contracted for a fifth straight month concurrent …

Q: What did profit reports, forecasts, and trading activity for Best Buy and Dollar General appear to indicate about the current US economy? A: The economy appears to be healthy for upper income levels and strained for lower income levels. Q: Would you pay $42 million for a restaurant with $4 million in sales? A: The current market value of …

Q: With recent financial headlines focused on the Federal Reserve, what is an economic issue that many investors might miss? A: The Federal Reserve’s current projections forecast a decrease in the overnight bank lending rate from 5.25% to 2.8% by 2027. The decrease in cash rates and money market rates likely increases the relative value of high cash flow assets. …

Q: Why did the recent, strong rebound in the equity markets begin with an August trading implosion? A: Some compelling reasons for this include retail sales spiking this past July for the first time since January 2023. Additionally, the Atlanta Federal Reserve’s current GDPNow number for Q3 is 2.4%, indicating recession discussions may have been overblown. Lastly, core U.S. consumer …

Q: What happened to the tech stock rally in the equity markets recently? A: It appears that, based upon global money flows, borrowing at low rates in Japan allowed hedge funds to buy U.S. tech stocks on leverage and gain the advantage from the decline in yen value through July 10th. The tech correction corresponded to the Bank of Japan …

Q: What has led the Dallas Business Journal to proclaim Dallas Ft. Worth “Y’all Street,” and the Dallas Morning News to proclaim Dallas “The New Capital of Capital”? A: Dallas has arguably become home for the second largest population of financial services professionals. The new Texas Stock Exchange sponsored by Blackrock, Citadel, Fortress and others will be headquartered here as …

Q: What are some of the reasons technology stocks were roasted in the equity markets this week? A: It appears that profit taking started after the July 10th peak in the Nasdaq 100 index. Recently, Tesla reported a 43% drop in profits from last year and selling accelerated in the tech sector. High stock valuation multiples, slowing growth rates for …

Q: Based on current financial market conditions, what are some strategies to raise tactical safety. A: The Tree and the Fruit: harvesting 10-30% of highly appreciated positions? Premium bond and bond fund harvests before and after the first potential rate cut(s)? Hard sell alerts for underperformers that break support? Selling a portion of highly appreciated growth funds? Q: Where do …

Top Financial Market Surprises of 2024 So Far *Impressive Equity Market Returns! *Artificial Intelligence (AI) Mania. *AI Fail: IBM’s Watson Gets Fired from McDonald’s? *Weight Loss Mania. *The Controversial Return of Meme Stock Investor Roaring Kitty. *Morgan Stanley’s Bearish Chief Investment Officer, Mike Wilson, Reverses Course. *Persistent and Sticky Inflation Numbers? *The Federal Reserve Delays Interest Rate Cuts? *Electric Vehicles …

McGowanGroup Wealth Management 2024 Q3 Client Update Team Member Update Highlights Joyce Cheng is moving back from San Francisco and will resume her career with McGowanGroup during August as our Chief of Staff! With Joyce’s readdition to the team, Harrison Smith will now devote his primary focus as one of our four wealth managers. The investment in expanding our team’s …