Wrong, Right, and Investments

I thought summer was supposed to be a time of relaxation and less stress. The events and aftermath of Charlottesville have provided just the opposite. Events like these remind me of my own purpose and humble me in the reality that I could be gone tomorrow because of hatred and racism. Heavy, right?

That said, I’m hopeful that you make some time to reflect on how you will continue to fulfill your own purpose. While you’re reflecting, here are a few timely topics to hopefully get you closer to having the financial means to execute on that purpose, whatever it may be.

Watch Your Investment Portfolio

I checked my investments this past weekend, and they have gone through a roller coaster. Stock performance has been lackluster over the last few weeks, with small cap stocks and transportation companies taking a major nosedive. I think this quote sums it up for the entire market:

“There is now more that can go wrong than right.”

I tend to agree with this Wall Street Journal assertion since it’s hard for me to imagine a world where company earnings continue to rise. Remember, stock prices tend to go up when companies exhibit continued earnings growth above expectations.

That said, August is a good time to examine your portfolios, albeit on your own or with your advisor. Let me know if there is anything that gives you major concern and/or whether you’re changing your investment portfolio holdings to accommodate a potential extended pullback in the stock market.

A Sector Theme

I read an interesting article, Aging Parents With Lots of Stuff and Children Don’t Want Them, which suggests that baby boomer children (that’s me) will not want their parents’ stuff when they die. I know, this is morbid but a whole industry is popping up around this trend. Specifically, the senior move management industry has experienced unprecedented growth in recent years. And, by senior move management, I mean professionals who help people figure out what to do with all their stuff. What?

Well, here’s one way for you to earn a little extra income – by learning how to participate as a senior move professional. Yes, everyone knows someone looking to downsize. Or, perhaps more favorably, you can take advantage of the other sector – self-storage - influenced by this trend. The self-storage industry is poised to grow 3.5% annually in the coming years.

When I invested at JPMorgan, my portfolio team loved public storage companies (like PSA), as these companies are cash flow cows. That means more money for potential shareholders like you and me.

Think on it. Are there any themes you’re playing right now in the market? Leave a comment.

I hope you have a wonderful day!