The stock market has been on a wild ride since October 2007, when the Dow Jones Industrial Average and the S&P 500 index both hit record highs, only to lose more than 50% of their value over the next 15 months. It took over five years for both indexes to surpass their pre-recession levels, and they set new records in the spring of 2013.1–2
This type of volatility can be hard on an investor’s nerves. It also can be hard on portfolio value if an investor reacts emotionally when buying and selling investments. One method that may help you weather market volatility is dollar-cost averaging.
Dollar-cost averaging involves investing a fixed amount in a particular investment on a regular basis, regardless of market conditions. Theoretically, when the share price falls, you would purchase more shares for the same fixed investment. This may provide a greater opportunity to benefit when share prices rise and could result in a lower average cost per share (see chart).
Of course, dollar-cost averaging does not ensure a profit or prevent a loss. Such a strategy involves continuous investments in securities regardless of fluctuating prices. You should consider your financial ability to continue making purchases during periods of low and high price levels. However, this can be an effective way for investors to accumulate shares to help meet long-term goals.
All investments are subject to market fluctuation, risk, and loss of principal. When sold, they may be worth more or less than their original cost. The Dow and the S&P 500 are unmanaged groups of securities; the S&P 500 is considered to be representative of the U.S. stock market in general.
1–2) The Wall Street Journal, March 5 and 28, 2013

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Location: Hedges Wealth Management LLC, 1300 Appling Drive, Mount Pleasant, SC 29464, USA
Labels: Charleston Miami Charlotte Atlanta Financial Advisor SC NC FL GA Dollar Cost Averaging Dow Jones Investments Loss Market Fluctuation Record Highs risk S&P 500

Despite the pick-up in volatility at the end of January, risk assets continued their upward ascent throughout the month. Expectations surrounding the implementation of the newly passed tax reform bill and the weakening US dollar served as positive catalysts for the month. Macroeconomic data was mixed; fourth quarter real GDP growth came in slightly below expectations but manufacturing activity accelerated and the US jobs report was positive. Although we have seen initial signs of rising inflation, levels remain subdued as low unemployment has yet to translate into meaningful wage growth.

With 39 percent of Americans feeling ill-prepared for retirement, according to the Employee Benefit Research Institute’s 2017 Retirement Confidence Survey, we are often challenged to come up with a solution to make saving easier.[1] Unfortunately, there are no easy solutions, and in the absence of unplanned windfalls, there are no shortcuts. There are, however, strategies that will help you overcome behavioral impediments by infusing discipline into your retirement savings plan.

In a widely anticipated move, the Fed increased interest rates by 25 basis points on March 15, 2017, the second interest rate hike in three months and there are talks of potentially two more raises this year. Positive economic data and a rise in business confidence served as a catalyst for the Fed to continue its interest rate normalization efforts with the possibility of as many as two additional rate increases later this year.

Global events, such as the intensely divided presidential election that we just lived through, are certain to generate some periods of market volatility of varying lengths in addition to a significant amount of stress. However, we urge financial advisors and investors to retain a few dos and don’ts to help manage post-election anxiety:

Don’t equate risk with volatility. Volatility does not equal risk. Risk is the likelihood that you will not have the money to live the life you want to live.

Maximizing tax credits offered by the IRS and various states around the US is key to maximizing your financial position. There are many types of tax credits available for both individuals and businesses. One of the better ones is for angel investors in the State of SC who invest in a qualified business. Investors can attain up to 35% as a tax credit.

There is no silver bullet when it comes to investing or wealth management in general… if there was, we would all be sitting on yachts and most likely not reading this article. However, there needs to be some clarity and calm on the very complex 'Brexit' subject for our US based clientele. 

We experienced first hand the creation of Exchange Rate Mechanism (ERM), Britain's exit from the ERM, the intro of the Euro, and now the exit from the EU (aka "Brexit").

After an extremely volatile quarter, the broad equity market indexes ended just about where they started. Risk assets began the year under heavy pressure, with the S&P 500 Index declining more than -10% to a 22-month low on February 11. Concerns over the global growth outlook and the impact of further weakness in crude oil prices weighed on investors, and investor sentiment hit levels of extreme pessimism.
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Hedges Wealth Management LLC - A Registered Investment Adviser
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If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone
Thank you.


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