New title

  • Mesa Financial Group on Facebook
  • Mesa Financial Group on YouTube
  • Mesa Financial Group on LinkedIn

Insights



Under the Macroscope: When Stocks and the Economy Diverge

How can investors make sense of the apparent disconnect between stock market performance and economic indicators? Do you find it puzzling when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the stock market? You’re not alone. The last few weeks have produced many examples of a stark contrast between stock market performance and economic indicators. So why the apparent disconnect? Markets are forward-looking, meaning current asset prices reflect market participants’ aggregate
Read more

The Bumpy Road to the Market’s Long-Term Average

Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But it’s important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between. Annual returns came within two percentage points of the market’s long-term average of 10% in just six of the past 94 years. Yearly returns have ranged as high as up 54% and as low as down 43%. Since 1926, annual returns have been
Read more

History Shows That Stock Gains Can Add Up After Big Declines

Sudden market downturns can be unsettling. But historically, US equity returns following sharp downturns have, on average, been positive. A broad market index tracking data since 1926 in the US shows that stocks have tended to deliver positive returns over one-year, three-year, and five-year periods following steep declines. Cumulative returns show this to striking effect. Five years after market declines of 10%, 20%, and 30%, the compounded returns all top 50%. Viewed in annualized terms across the longest, five-year period,
Read more

What Do You Do When Markets Are Down? Build Wealth!

It never feels great to see the stock market drop, especially by a lot, and then watch as your portfolio’s value falls with it. Fear, frustration, anger, anxiety, helplessness – each is a totally understandable and even appropriate response. But all circumstances, no matter what part of life they touch, come with context. And nothing about the context surrounding current market events happens to change what you can and cannot control. At an elemental level, for instance, we have no
Read more

February Planning Action Items

Review your W2 and 1099s with your Independent CERTIFIED FINANCIAL PLANNER TM. Your 1099s and W2s provide valuable information about your earnings and investing habits. If your salary has increased, have you also increased your savings and investment rates? Apply income/salary to living expenses, and bonuses and stock options proceeds to retirement goals. If your mutual funds made sizable capital gains distributions, would you be better off holding low cost, tax-managed institutional funds in your taxable account(s)? Bump up contribution rates
Read more

Hindsight Is 20/20. Foresight Isn’t.

The year 2019 served up many examples of the unpredictability of markets. Interest rates that US policy makers expected to rise fell instead. American consumers’ confidence weakened as the year began,1 and news headlines broadcast fears of an economic slowdown. But investors who moved onto the sidelines may have missed the gains in the US stock market. As of the end of October, the S&P 500 was up more than 20% for the year on a total-return basis. That puts it
Read more

What Happens When You Fail at Market Timing

The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 turns into $138,908 from 1970 through the end of August 2019. Miss the S&P 500’s five best days and that’s $90,171. Miss the 25 best days and the return dwindles to $32,763. There’s no proven way to time the market—targeting the best days or
Read more

It’s Open Enrollment Season. Have You Taken a Good Look at an HSA?

For high-income investors who are maxing out other tax-sheltered accounts, the high-deductible healthcare plan/HSA combo is close to a no-brainer. In one of the biggest changes to employee benefits in decades, high-deductible healthcare plans are appearing on more and more benefits menus, and these plans are experiencing dramatic growth in enrollment as a result. Thirty percent of workers were covered by a HDHP in 2019, according to data from the Kaiser Family Foundation; in 2014 20% of workers were covered by
Read more

3 Steps to Protect Your Financial Identity

Beginning in 2016, the United States Department of Homeland Security (DHS) has designated every October Nation Cybersecurity Awareness Month (NCSAM), in an effort to raise awareness of safer online activities. Here are 3 simple steps to protect your financial identity: Prevent Prevent criminals from obtaining confidential information by taking the following steps: Freeze your own Social Security number, plus have others within your span of care (spouse or partner, children, elderly parents) do the same. Store financial documents in a
Read more

A Tale of Two Decades: Lessons for Long‑Term Investors

The first decade of the 21st century, and the second one that’s drawing to a close, have reinforced for investors some timeless market lessons: Returns can vary sharply from one period to another. Holding a broadly diversified portfolio can help smooth out the swings. And focusing on known drivers of higher expected returns can increase the potential for long-term success. Having a sound strategy built on those principles—and sticking to it through good times and bad—can be a rewarding investment
Read more