The theme this week on the Retirement Quick Tips Podcast is: Are You Sabotaging Your Investments Because Of Your Political Views?

Early in my career, I worked in a big office with about 25 other financial advisors. 

One of these advisors was about 10 years older than I was at the time. He rode his bike to work every day, and he leaned pretty far left on the political spectrum. His niche was green investing, which was really gaining in visibility and popularity at the time. Being in the deep blue city of Portland, Oregon, he was able to attract like-minded clients who embraced his green investing approach. 

He put all of his clients' eggs in the green investing basket. He invested in solar and wind companies, stocks of coffee companies with sustainable practices, and shunned anything having to do with oil or the military. 

In 2008 and 2009, you could make a strong argument for these new technologies and governments and people focused on reducing their carbon footprint and trying to address climate change, you could make a strong argument for why this investment bias would pay off and make his clients wealthier while investing with an eye toward their values. 

But the problem was, he was way too early to embrace the trend of ESG investing. His clients lost money, and his advisory practice didn’t really grow

The moral of this story is that political views and how you view the world and the future - for better or worse - can create strong biases and blind spots when it comes to how you construct an investment portfolio, so it’s important that you maintain a well-diversified portfolio no matter your political leanings. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Are You Sabotaging Your Investments Because Of Your Political Views?

Happy Election Day! If you’re a Republican and the polls and predictions are correct, I think you’ll be a happy camper this evening. If you’re a democrat, well I guess it depends on where you live and at least you had your fun in 2020 with a full sweep. 

I live in the suburbs of Portland, Oregon. I was born here and have lived here pretty much my whole life, and it’s quite possible that we could have a republican governor for the first time in like 40+ years in Oregon. Oregon is a very blue state, so the fact that republican Christine Drazen even has a chance is really interesting. As I record this podcast, she’s leading in the polls, and because of that, the governor race has even attracted national media attention. I was shocked the first time I read an article about Drazen in the Wall Street Journal. If California is Marcia Brady, then Oregon is kind of like Jan Brady. Nobody pays much attention to us up here on the northside of California, so that was the first time I realized that a republican vote in a governor's race might actually mean something in Oregon. 

We have mail in voting here in Oregon, so I’ve long since voted and now I’ll just watch with bated breath to see what happens this evening. 

One thing I don’t expect when I wake up the morning after election day is a strong stock market reaction. Markets tend not to care all that much about election outcomes, even in the short-term, and whether Congress and the White House are blue, red, or deadlocked with both, thankfully it doesn’t impact the big picture all that much. 

I’ll talk more specifically later this week on the ways which elections can influence markets, but whether you’re elated or depressed after tonight’s election outcome, you can at least rest assured that whatever that outcome is, it’s unlikely to have much impact on your investment portfolio. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the Retirement Quick Tips podcast! I’m your host Ashley Micciche, co-owner of True North Retirement Advisors. I’ve been a financial advisor for 15 years, and I love talking about all things retirement. I’m using my 15 years in the world of finance & working with clients to help bring you more clarity about your own retirement. 

The theme this week on the podcast is: Are You Sabotaging Your Investments Because Of Your Political Views?

Every 2 years around this time, I start getting the same questions…what do you think is going to happen with the stock market after the election? 

My answer is the same every time…I don’t really know. But, believe it or not, the outcome of the election will hardly register with the stock market even in the short term.

The reality is that the outcome of the election and whether democrats remain in power, there’s a massive red wave, or whether political power is divided, doesn’t make much difference for the stock market. And that’s good news. You wouldn’t want the fate of your investments to live or die by whichever party is in control in Washington.

But too many people make the mistake of letting their political bias color their investment decisions, so this week, I’ll talk about some of the pitfalls to avoid when it comes to making investment decisions that are influenced by your political bias. 

That’s it for today. Thanks for listening! Come on back tomorrow when I’ll talk about how political bias can wreck your investment portfolio. 

My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

It’s Sunday, which means...it’s recap time here on the Retirement Quick Tips Podcast

This week the theme was: Don’t Fight The Fed

In case you missed any episodes, here’s what we discussed this week…

• Why Fed Policy Influences The Stock Market
• How Interest Rate Policy Impacts Stocks: Competition & Borrowing Costs
• Does The Fed Write The Script For The Stock Market?
• The Interest Rate Trend Matters Most

The most important takeaway from this week is: If you’re an investor in the stock market, I can’t overstate how important interest rates, as set by the Federal Reserve are for influencing short term stock prices. In the rising interest rate environment that we’re in right now, it’s even more important to understand how both the amount and trend of interest rate increases will impact your portfolio. 

If you fail to understand and appreciate this, you’ll likely be confused about what’s happening in the stock market and more prepared for what’s likely to be more pain ahead. 

Tomorrow I’m starting a brand new weekly theme: Are You Sabotaging Your Investments Because Of Your Political Views?

Election week is upon us, and if you’re anything like me, you’ll be happy when it’s all over. No more political ads, and much of the unease that many of us feel before an election, will subside once the outcomes are decided. 

But whether you’re conservative, liberal or somewhere in the middle, you want to be careful about letting your political views infiltrate your investment decisions. So next week I’ll talk about some pitfalls to avoid, where I see people make the biggest mistakes when it comes to their political views dictating their investment decisions, and when it does make sense to allow your personal values to infiltrate your investment portfolio. 

Thank you so much for listening this week! If you’re enjoying the podcast, chances are someone else you know who is getting close to retirement could also benefit from checking it out, so please share the show with a friend, a neighbor, your sister, or your boss. Just go to your favorite podcasting app, hit the share icon, then text or email the show link to someone you know who is eyeing retirement. 

Thanks for sharing the love and spreading the word. I hope you have a blessed Sunday. My name is Ashley Micciche, this is the Retirement Quick Tips Podcast.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Don’t Fight The Fed

Today, I’m talking about how the trend of interest rates matters most…

• The direction of interest rates is generally what matters most rather than the actual current level of interest rates. According to Zweig, “the trend of interest rates is more significant than the level itself…and “Moves by the Fed toward easing have a greater positive impact on stock prices than the negative effect” [created by raising interest rates]
• Turning to today, what do we see? Fed policy that clearly points to higher rates ahead. 
• With that backdrop, it’s hard to make a case for higher stock prices in the short term.
• The good news is that (hopefully) sooner rather than later, interest rate policy will finally start beating inflation down, and at that point, the Fed can let off the gas with their interest rate increases. 
• In the meantime, I think it will be quality that matters most and will keep investors from throwing in the towel. Commenting in late October, Thomas Peterffy, the chairman and founder of Interactive Brokers Group Inc., said “People better roll up their sleeves and begin to research and try to identify companies with great business prospects and good management, ” said Peterffy. “That is not going to be so simple.” 
• If you have cash on the sidelines, now is the time to start adding cash when stocks are battered. We don’t know when the Fed will stop raising rates, but it’s likely to happen in the next year, so you want to be fully invested by the time the stock market bottoms. 
• Zweig died in 2013, but I think he would be quite pleased that his advice of don’t fight the Fed still holds true today, more than 50 years since he asserted his theory. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Don’t Fight The Fed

Today, I’m asking the question: Does The Fed Write The Script For The Stock Market?

• “It’s been said that the Federal Reserve writes the script for the stock market. The evidence supports that theory. The Fed, as it is commonly called, has the job of adjusting the growth of the nation’s money supply, monitoring the trend of credit or borrowings, and influencing the level of interest rates. It does not necessarily tackle all of these tasks at any one time, but whatever goal the Fed has in mind, it is certain to have a major impact on interest rates and ultimately on stock prices.” - Zweig
• With this in mind, let’s look at history. If you layer a chart of the Federal Funds Rate over the stock market over the long-run, you’ll see an interesting connection that’s worth paying attention to. 
• When the Fed lowers interest rates, it’s a strong bullish 
• Not the only indicator, but it’s a powerful one, because as I mentioned on Tuesday’s episode, as Zweig pointed out in his book Winning on Wall Street, “in the stock market, as with horse racing, money makes the mare go. Monetary conditions exert an enormous influence on stock prices.”

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Don’t Fight The Fed

Today, I’m talking about How Interest Rate Policy Impacts Stocks: Borrowing Costs

• “when interest rates fall, it costs corporations less to borrow. That reduces a major expense, especially for companies that are heavy borrowers” Zweig
• Lower expenses means higher profits for large publicly traded companies. Higher profits mean higher stock prices. 
• It was so cheap and easy for companies to borrow, that it made it a lot easier to grow, expand, hire, and pay their employees.
• The flipside, of course, is also true. When borrowing costs go up because interest rates are higher, that cuts into profits, and can lead to a quick bankruptcy for the most debt-saddled businesses. 
• Especially when you see rates go up sharply like we’ve seen…I think you’ll start to hear more about earnings drops, layoffs, and companies going belly up in the coming weeks and months. Too many businesses are financing their operations with debt, and with the prime rate now up to 6.25% and heading higher, its nearly twice as expensive to take on new debt as it was just a year ago when the prime rate was 3.25%

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Don’t Fight The Fed

Today, I’m talking about How Interest Rate Policy Impacts Stocks: Competition

• According to Zweig, lower interest rates make stocks more attractive relative to other investments like cash, cds, bonds, etc. 
• Incentives drive where money goes. If I’m not making anything sitting in cash or a short term CD, because rates but the stock marke
• TINA effect 
• This works in both directions…rising interest rates - all of a sudden cash, bonds, and CDs become more attractive. These days, I can get about 4% on a FDIC insured 9 or 12 month CD. That sounds like a much more attractive option than it did just a year ago when I might as well have shoved my money under a mattress rather than invest in a CD. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Don’t Fight The Fed

Today, I’m talking about Why Fed Policy influences the stock market

• “In the stock market, as with horse racing, money makes the mare go. Monetary conditions exert an enormous influence on stock prices. Indeed, the monetary climate—primarily the trend in interest rates and Federal Reserve policy—is the dominant factor in determining the stock market’s major direction. Once established, the trend typically lasts from one to three years.” - Martin Zweig, Winning on Wall Street
• I didn’t appreciate this until 2018. That year, the Fed raised interest rates 4 times. They were all small .25% rate increases to combat inflation that had started to creep higher and a really tight job market. They were essentially trying to get ahead of a potentially overheating economy with a few small increases. 
• The stock market did not like it one bit - the S&P 500 lost 6.24% in 2018, with the steepest losses coming right at the end of year. 
• What was the primary driver of the losses in 2018? A change in Fed rate policy to raise interest rates. As an advisor who had experienced only an interest rate environment where rates remained near zero, I had little appreciation for how rising interest rates negatively impact the stock market. That all changed in 2018…

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the Retirement Quick Tips podcast! And happy halloween to you! I’m not a big halloween person…In fact, I’m just dressing for the weather to take the kids trick or treating tonight. I think the last time I wore a halloween costume was circa 2006. 

And would you think I’m a bad mother if I told you that instead of dressing up my 2-year old in costume, I’m having his father put him to bed at his usual 6:30pm bedtime, we’re turning off the lights, and hoping that no trick or treaters come to the door. Halloween is just another day for him…I guess that’s what happens when you’re the 3rd child - at least in our family.

My 8 year old is going to be a witch - dressing up in matching outfits with her BFF to go trick or treating, and my 5 year old has picked a skeleton ninja for his costume this year. 

My job is to keep them from eating all the candy before I have a chance to pull out all of the 100 grand bars and butterfingers for myself. 

Alright…back to the podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors. I’ve been a financial advisor for 15 years, and I love talking about all things retirement. I’m using my 15 years in the world of finance & working with clients to help bring you more clarity about your own retirement. 

The theme this week on the podcast is: Don’t Fight The Fed

The Federal Reserve has been aggressively raising interest rates in 2022 to combat sticky inflation. They meet again this week and are expected to announce another .75% increase in interest rates, and probably another rate increase of about .5% in December as well. 

With this top of mind in the news this week, I thought it was an appropriate time to discuss the concept “Don’t Fight The Fed”. 

This term was coined by Marty Zweig in his 1970 book, Winning on Wall Street. His advice has held the test of time for over 50 years, so this week, we’re exploring what he means by this, and  I’ll talk about why Federal Reserve policy has become so important in determining the direction of the stock markets. 

Whether you have a retirement portfolio in bonds, stocks, real estate, cash, or all of the above, understanding what Federal Reserve policy really means for your investments can help you make sense of this confusing time. 

That’s it for today. Thanks for listening! Come on back tomorrow when I’ll talk about…

My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance