This post comes from Jon, who blogs over at PennyThots. There he talks about all things financial and tries to help readers improve their finances one day at a time.
We have never been in a period of more uncertainty. We just experienced an election where the result surprised most people. Had you told someone two years ago that Donald Trump would be President, they would have thought you were crazy.
Donald Trump just won the American presidency. Will that change anything?
All through his presidential campaign, he boasted his ideologies and, very openly, tweeted his thoughts away. He seems to be liked by some given his recent win. However, his win has not changed much in the markets. On November the 9th, when Trump won, the S&P500 closed up 23.62 (1.10% ) and the TSX closed up 99.49 (0.68%) up here in Canada so what is the perfect portfolio to survive Trump?
Consumerism is a norm in America and most people go to the mall because… why not? The Motley Fool reported that the typical woman makes 301 trips to the store annually, spending close to 400 hours a year buying clothes, books, food, and toiletries. This is a LOT of hours! But does shopping actually make you happier?
Simply by looking at the increasing average credit card debt, one can quickly see how this is not sustainable.
I read a lot of personal finance blogs and publications but one thing strikes me; there are so many writers that are telling their heroic stories about how they got out of debt. Guys like Grayson Bell from Debt Roundup is seen like a superhero when he gets out of $75,000 of consumer debt in 4 years.
I am all for getting out of debt and sites like Grayson’s does help thousands of people get out of the debt trap but there is nothing heroic about getting into debt in the first place.
In recent years, the market has seen great growth and some may ask themselves if it is overvalued. Has it gone too high? Is the next stock market crash coming? P/E ratios are higher than average and valuations seem to be in bubble territory, or are they?
The P/E ratio is the Price of a stock versus its Earnings. What a company earns is compared to the current price of its stock, the lower the P/E, the cheaper the stock is.
After researching the subject and my own little trial and error, I came to the conclusion that index fund investing might be my best path to financial freedom. I started investing in the stock markets playing individual stocks (note here the word playing) back in 2013. I had a very good year and made a 30% return but I do not think I would have been so luck year after year.