Tag Archives: Wall Street

Staying Sensible During Market Records

diceIt’s almost like a fact of life; the market will go up and go down, break records and hit all-time highs or lows. In short, the stock market can fluctuate as we have always seen and once it breaks records, people can swing either way about it. Whether they are positive or negative, one could think that becoming active on the market is a good course of action. On the other hand, another might feel as though they missed the mark and they can’t get in on the offers for the time being.

One thing is certain, no matter what the market is doing, investors should stay sensible. If the market is breaking records, it’s nothing new, it has happened before so new highs should not merit excitement or worry. Take it from Zack Shepard, the vice president of Matson Money, over the long-term the market generally rends to rise, so new highs may not be worth the hype. No one can predict what the market will do. Just because something may be trending now, tomorrow it could be down in the dumps. Financial coaches need to rein in their investors and discuss how market records can change in an instant.

If you are going to jump in and buy, hold on to it or just stay in it. Take for instance data published by the Center for Research and Security Pricing (CRSP) with respect to the CRSP 1-10, a stock market index representing the entire market cap of the New York Stock Exchange and other exchange equivalents.  According to the historical data for the CRSP 1-10 index, the average 5-year annualized return after a new high since 1926 is 9.02%! Of course, past performance is no guarantee of future success. This index return information does not reflect actual investor results and no representation is made that your portfolio would experience similar results.

Indices are unmanaged, cannot be invested in directly and their returns do not represent the performance of any actual fund or transactions and do not include management fees, transaction costs or expenses. Just looking at the CRSP historical data, holding out could be beneficial, but that’s the beauty of the market.  It can be a hard game to play, but if you look at your long-term portfolio and manage it well with diversified stocks, you could be on the way to more stable financial footing.

Mark Matson Reviews Misconceptions

When you put yourself in front of a camera as part of your career, you’re going to inevitably wind up with more than a few people using some ink to tell others what they think about you. When Rick Starr decided to use KnoxNews.com to comment on Mark Matson, author of Main Street Money and a financial coach who makes frequent appearances on Fox Business News, the subject himself felt it necessary to set the record straight. In the video, Mark Matson reviews Rick Starr’s comments and takes the time to clear up any misconceptions that the public may have – for instance, Matson’s role as a “Christian” financial adviser and his comments on the job market.

A “Christian” Financial Adviser?

Main Street Money has had favorable reviews, both by critics and the public. With a nearly flawless 5 star rating on Amazon, it seems the unflattering review on KnoxNews.com could only stoop to grasp at straws. Rick Starr chose to call out Mark Matson for being a “Christian”; a fact that Mark Matson never chooses to harp on.

“I would not, in any way, shape, or form hold myself out as a ‘Christian’ financial adviser,” says Matson in the segment. He goes on to call the practice of using religion in order to make financial gains “deplorable.” While he does not try to deny the fact that he is, in fact, a Christian, nowhere on his website does he call himself a “Christian” financial adviser.

Getting Back to the Issues at Hand

With the whole religious affiliation issue put to bed, Mark Matson reviews the rest of Rick Starr’s comments on the Wall Street Journal piece that Matson was quoted in. He took specific objection to a particular quote that Starr seemed to present out of context. The quote in question deals with unemployment, stating that “no jobs, no retirement…these measures are like putting bandages on a patient dying of a heart attack.” Matson explains that the quote was an answer to the question “What do Americans need to get back on track?” Starr seemed more interested in taking Matson’s comments out of context than responding to Matson’s call to action. “We have 90 million people who can’t find jobs… we need more jobs, not more social security,” says Matson.

The Wall Street Journal Factor

Rick Starr also seemed to take issue with the fact that what Matson saw as a positive article came from The Wall Street Journal. “His political philosophy jibes nicely with the Wall Street Journal, of course,” Starr pointed out. Rather than take the opportunity to dispute this statement, Mark Matson focuses on the issues in the video. “People would be much better off taking 15% of their salaries all these years and invest it prudently,” says Matson, as an alternative to a proposed increase of social security.

The video shows that there are two sides to every story. While a guy like Rick Starr has his opinion, Mark Matson obviously has his own and can defend himself when the need arises.