Our Thoughts

FJY News to Know #8

Highest cash in a decade!!!

Wow, that last quarter sell-off of 2018 really hit Main Street with a wave of pessimism, which lead to higher cash positions since January 2009! Many people felt the S&P 500 peaked last year at 2,931 points. That is over 8% lower than its close last Monday. Investors opted to dump their market positions in favor of cash much like they did right before our most recent (and longest) bull market in history. Why does this matter to your investment strategy? Find out why strategists at Bank of America see this as an opportunity, rather than a setback.

 

Staple Household Items Might Be Expensive … Again!?

Many top brand names, such as Arm & Hammer, OxiClean, Viva, Charmin — are planning to raise prices on their boilerplate products.  Items like diapers, cat litter, and cleaning products could be pricier this year.  This would occur in the wake of previous price hikes in 2018.  Yikes!  This is partly due to the rise in commodities.  However, these famous brands might have their work cut out for them in lieu of competition from store-named products, Walmart, and Amazon.

 

Most Americans Are Concerned About Financial Fraud — And 36% Are Very Concerned …

Consumer Alert!  When people think about financial fraud, their minds invariably default to their credit cards.  However, financial fraud is so prevalent today that people are nearly obligated to take preventive steps to combat this phenomenon.  However, credit cards are not the only target for hackers — they have broadened their horizons.  Investments such as the IRA and other ‘low-touch’ accounts — are on their radar screen. It only takes a few minutes to become more conscious of how to protect yourself from fraud.

 

What Worries (and Flexibilities) Are Associated With Repayment Of The Reverse Mortgage?

The HECM loan, commonly referred to as the reverse mortgage, has some advantages over a standard for ‘forward’ loan:  The HECM doesn’t require monthly payments — as the balance is often deferred until the non-borrowing spouse no longer meets the terms for maintaining the loan.  However, the loan balance often includes interest, mortgage insurance premiums, and possibly real estate taxes.  So, when should you consult a professional regarding an HECM?  This article helps answer this.