In Today's Market, Don't Make This Mistake

Ed Hart faced a tricky situation... He had to convince a man he just met to stop making a big mistake with his money. [Chaikin PowerFeed]( In Today's Market, Don't Make This Mistake By Marc Chaikin, founder, Chaikin Analytics Ed Hart faced a tricky situation... He had to convince a man he just met to stop making a big mistake with his money. In 2013, Hart worked as a financial adviser in San Antonio, Texas. His new client was a rancher in his mid-80s. The man had struck it rich after finding oil on his property. For a couple of years before meeting Hart, the rancher received a $100,000 royalty check every month. But like a lot of folks, the rancher didn't know much about investing. When Hart saw the man's portfolio, his heart sank... Recommended Links: [The sneaky (yet 100% legal) way for Obama to return to power]( The ONLY way Democrats can keep the White House is to bring back Barack Obama. And there's a sneaky (yet 100% legal) way to achieve this. In fact, this disaster scenario is already underway. See what they're up to, and how you can get ready today. [Here's the full video exposé](. [50-Year Wall Street Legend Issues July Stock Warning]( NVDA is stumbling. The next 60 days could usher in one of the biggest financial upheavals of the year. July is normally the best month of the year for U.S. stocks. [Here's why 2024 could be different](. It was nearly 100% invested in annuities. You're probably familiar with annuities. They're one of the most conservative investment vehicles you can buy. In its simplest form, an annuity is just a monthly payment that will continue for as long as you live. Hart knew he had to be tactful. He had seen plenty of ugly portfolios from new clients over the years. And no one likes to be told they're making a mistake with their money. Plus, Hart could empathize with the rancher... The man had spent a lifetime working hard and living frugally. He had seen plenty of ups and downs in the economy and the local oil industry. He didn't trust the stock market. Now, for the first time in his life, the rancher was a millionaire. And yet, he still had no interest in taking any extra risk. Still, Hart knew that no one should invest just about everything they owned in annuities. He had to try to get his new client to take some risk. Hart started by explaining the benefits of diversification. He also pointed out that annuities aren't a good choice for someone in their mid-80s. After all, the payments stop when the owner passes away. The rancher listened. But he still wasn't convinced. So Hart then pointed out the low-single-digit returns of the annuities. Over time, that doesn't compete with the 7%-plus annual return generated by a mix of stocks and bonds. It was a solid argument. But once again, it still wasn't good enough for the rancher. Finally, Hart went through the fees and withdrawal penalties of the annuities. He pointed out that these expenses would eat up a big chunk of the rancher's already-low returns. That caught the rancher's attention. The man had spent his entire life avoiding excess costs. Hart continued breaking down some numbers. He showed how investing in stocks would almost certainly leave the man with more money to pass along to his heirs. That was another critical point. The rancher personally didn't mind underperforming the market. But he hated the idea of missing out on gains that would otherwise go to his family. In the end, Hart convinced the rancher to sell the annuities that were old enough to avoid termination fees. He also agreed to start investing his royalty income into a broad portfolio of stocks and tax-free bonds. As a Chaikin PowerFeed reader, you surely know that stocks are the best vehicle for creating wealth. We've discussed this concept many times in the PowerFeed and in our paid publications here at Chaikin Analytics. But millions of people in the world don't know that. And many of them are just like the rancher from this story... They're not comfortable taking control of their financial future. To these folks, investing is complex and intimidating. As such, they're more comfortable holding just cash. Or maybe they're keeping all their money tied up in annuities. But folks, we're in an incredible bull market. Stocks are soaring. Since the 2022 bottom, the S&P 500 Index is up an incredible 56%. Make sure you don't end up like the rancher – sitting out the market on the sidelines and thinking you're making a "safe" bet. Now is the time to build wealth. And in a market like this, that means putting money to work in U.S. stocks. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.13% 9 16 5 S&P 500 +0.1% 105 302 89 Nasdaq +0.09% 36 47 16 Small Caps -0.44% 416 1045 429 Bonds -0.44% — According to the Chaikin Power Bar, Small Cap stocks remain somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +2.27% Discretionary +1.84% Communication +1.37% Utilities +1.18% Staples +0.64% Real Estate +0.52% Health Care +0.38% Materials +0.17% Financial +0.14% Industrials -0.31% Energy -2.61% * * * * Industry Focus Dow Jones REIT Services 6 56 39 Over the past 6 months, the Dow Jones REIT subsector (RWR) has underperformed the S&P 500 by -19.03%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors. Indicative Stocks [rating] SVC Service Properties T [rating] MPW Medical Properties T [rating] EQIX Equinix, Inc. * * * * Top Movers Gainers [rating] INCY +4.35% [rating] GLW +3.76% [rating] TSLA +3.71% [rating] WBD +3.23% [rating] PARA +3.13% Losers [rating] ALB -8.75% [rating] PTC -5.25% [rating] DPZ -4.5% [rating] LW -4.5% [rating] CMG -3.41% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises [rating] KRUS Kura Sushi USA, Inc. Q3 $-0.09 Missed by $-0.06 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.