FINRA Investor Education Foundation’s Post

Day 14: 📊 The Equity Market Equation: Inflation’s Dual Impact [Part 3 of 5 — Expectations vs Reality] 🚨📚 Financial Literacy Essentials: Understanding Inflation and Interest Rates in 18 Days 📚🚨 (A Series by Tyler J. Fall, MSF🎓👔) ⏪Previously: Common Impending-Recession Tactics & ‘FOMO’? 📊 Equity Valuation, Inflation Expectations, & Market Sentiment I don't know who rolled their eyes earlier in regards to the Economic and Quantitative Book Value Argument for Stock Valuations during Inflation, as if Supply & Demand Dynamics are the Sole Dictator and Inflationary Periods are as easy as ‘2+2’... because, ask the Fed chair—Right now he’d probably answer ‘5’. Obviously, I wouldn't lie to you and leave it at this High-School Level Personal Finance book cliche. 🧩So, What’s Going On❔ What we are Currently Seeing in the Market in the Present Day, as in the All-Time Highs in the Indexes while the word ‘Recession’ is still Tossed Around (due to people thinking we just forgot that they decided to change the very Economic definition of the term “Recession”... who knows why? right?), can be summed up in 1 word: Expectations — (However, if there was to be a second, I'd say “Greed”). These Expectations play perhaps the most critical in Equity Valuations: 📥‘Pricing In’ Inflation: I'm sure we've all heard this term over the past couple years, but it’s Not Only Applicable to Inflation. The Markets always Look Ahead, and this Forward Looking Perspective is a big game of ‘Follow the Leader’. As Big Institutions make their claims on what the future may hold, they Orchestrate the Direction of the Market via their Influx of Investment Volume and Capital, or its Removal. Then, these Expectations Influence the Markets to the Point that You either Ride the Tide, or Try to Fight the Current… and You Lose. (Momentum wins in a lot of things, unless you are the Undefeated going into the CFP #GoNoles 🍢) So, if Inflation is Anticipated, Markets may have already Priced-In its Effects, for Better or Worse in Terms of Your Portfolio Balance. Unless there is Shocking News that even Surprises the People who are the Best at What They Do, this would Lead to Underwhelming Market Movements, which causes a Drop in the Implied volatility, when actual Inflation Data is released (this Drop in Volatility is where the Robinhood Options-Loss Memes come from, FYI 📉) ➡️ [Read-On in Part 4] 🔗Visit: https://lnkd.in/ezGD5hjQ 📖Bookings: https://lnkd.in/dcfVhhm7 #Finance #Business #Money #Investment #Wealth #Investing #Invest #Trader #Stocks #FinancialFreedom #FinancialLiteracy #FinancialPlanning #Education #Inflation #FOMO (This post is for informational purposes only and is not intended as investment advice. Investment decisions should be made based on individual financial objectives and risk tolerance) Disclosures: thrivent.com/social

Bear Market Mastery Unleashed! Save the date - December 18, 2023 at 6:00 PM ET. Explore innovative approaches, connect with financial experts, and transform market downturns into opportunities! Don't just survive, thrive in the bear market and register now! https://lnkd.in/gFiQsDYa #IndependentInvestor #BearMarketInsights #MarketDownturn

Data from the latest NFCS Investor Study and insights from focus groups with young investors of color shed light on the investing experiences of investors of color. We find that investors of color tend to be younger than white investors and are entering the market at a faster pace. Many of their behaviors and attitudes reflect those of young investors more generally, such as relying on social media for investing information and trading risky investments like cryptocurrencies and meme-stocks. Learn more ▶️ https://bit.ly/48PXlzB Read the report 📑 https://bit.ly/3vwh9Kc

Day 14: 📊 The Equity Market Equation: Inflation’s Dual Impact [Part 1 of 5 — Stock Prices & The Central Banks] 🚨📚 Financial Literacy Essentials: Understanding Inflation and Interest Rates in 18 Days 📚🚨 (A Series by Tyler J. Fall, MSF🎓👔) Everyone's favorite subject in finance: Equities (aka “Stocks”). So, how do inflation and interest rates influence investor decisions and market performance? Well, contrary to my original prompt on this series, and this being the underlying reason for my slight hiatus from it, I wanted to go more in-depth on this specific topic. So… Hello, 5-Part Post! 👍The Good and The Bad👎 We know that inflation erodes purchasing power, but we also know that it can signify economic growth, affecting different equities in opposite ways: 🟢The Good Companies in Necessary Industries, or with Brand Loyalty, can keep business afloat while passing on inflation’s higher costs to consumers These higher costs, depending on the Cost Ratios (Losses Passed-On vs Losses Taken), can actually lead to increased Revenues and Profits Increased Profits → Boosted Stock Price 🟥The Bad: Companies without this luxury are not able to pass these costs on to consumers when demand decreases These higher costs, due to the comparatively inverted Cost Ratio, can lead to decreased revenues and profits Decreased Profits → Depleted Stock Price 🏦 The Central Banks’ Two Cents (+ Interest) Again, this Cost Ratio is affected by increased Interest Rates, as the Central Banks increase rates to combat inflation as rates make things more expensive, thereby decreasing demand, which slows spending, theoretically curbing inflation. This can lead to the re-valuation of equities: Increased Business Expenses → Increased Goods & Services Prices → Consumers Buy Less → Company Earnings Drop → Stock Prices Drop Secondly, and not as widely known, Earnings during these times are Discounted at Higher Rates, meaning they are “Perceived as Less Than What They Seem on Paper vs The Applicable Interest Rates and Inflation Rate” (Here: Discounted = “Real Value”). This makes Stocks Less Attractive, EVEN IF they are Performing Well vs Other Companies in the Same Industry This is especially true for Speculative Corporations (e.g. “High-Growth-but-Not-Yet-Profitable Companies). Some may be looking at Tesla right now, as an example (albeit, different) ➡️ [Read-On in Part 2] 🔗Visit: https://lnkd.in/ezGD5hjQ 📖Bookings: https://lnkd.in/dcfVhhm7 #Finance #Business #Money #Investment #Wealth #Investing #Invest #Trader #Stocks #FinancialFreedom #FinancialLiteracy #FinancialPlanning #Education #Inflation #FOMO (This post is for informational purposes only and is not intended as investment advice. Investment decisions should be made based on individual financial objectives and risk tolerance) Disclosures: thrivent.com/social

All things related to financial markets may seem like a labyrinth to many people. More often than not in this labyrinth, the role that emotions play is more significant than most investors acknowledge. Now, it would not be wrong to say that financial markets have both volatility and unpredictability as inseparable parts that can create an emotional roller coaster. However, investors’ ability to manage these emotions can sometimes be the determining factor of their success or failure, more than other financial metrics or analytical tools. Historically, investors and the financial markets have periodically seen unreasonable trends fueled purely by the collective emotions of investors. The Tulip mania in the 17th century and the dot-com bubble at the beginning of the 21st century showed us how unfettered optimism can inflate asset prices. By the same token, historical events like the Great Depression and the Great Financial Crisis showed us how overwhelming pessimism can lead to severe financial crises. The emotions of fear and greed have an influence in the decision-making process related to investing more than any other. Fear may lead to a sell-off of assets prematurely, and without a reasonable explanation, greed might result in a situation where investors buy and hold assets for too long. And both can be detrimental to investors’ financial health. The modern investment landscape, where investors are bombarded with real-time news, market analysis, commentary, and flow of unlimited information and data, can further intensify these emotional responses and the aftermath of accumulating these emotions across financial markets. Is there a remedy or an antidote? Yes. A combination of financial education, a well-defined investment strategy, and a keen awareness of one's emotional triggers. All those can be gained through trial-and-error and years of practice, or investors can expedite this process by getting professional assistance. By acknowledging the emotional aspect of investing and developing strategies to counterbalance it, investors can ensure that their financial decisions remain grounded in logic and foresight. #ISECWealthManagement #ISECWM ___ Disclaimer: The information in the article is presented for general information and shall be treated as a marketing communication only.

Introduction: The landscape of the United States stock market is characterized by disparities in access to resources and opportunities. While some individuals benefit from access to advanced technology, extensive data, and expert financial advice, many others are left behind, unable to navigate the complexities of financial markets. Market Leader Game addresses the urgent need for equitable access to data-driven financial analysis tools and provides a solution to empower everyone to participate meaningfully in the stock market. The Digital Divide and Financial Inequality: The digital divide exacerbates existing inequalities within the financial sector, perpetuating a cycle of financial exclusion for marginalized communities. Access to technology, reliable data sources, and financial expertise disproportionately favors those with means, leaving others at a significant disadvantage. As a result, underrepresented individuals are often unable to make informed investment decisions or access opportunities for wealth creation available through the stock market. The Goal of Financial Inclusion: At the core of Market Leader Game lies the goal of financial inclusion - to ensure that everyone, regardless of socioeconomic status, has access to the tools and resources needed to participate in the stock market on an equal footing. Central to achieving this goal is the provision of automated financial analysis services that offer comprehensive insights into publicly traded companies. These services go beyond mere data access, providing users with scorecards that scale with financial services typically out of reach for many Americans. A Solution: Market Leader Game is a software solution designed to democratize access to financial analysis to empower individuals with informed investment decisions. Leveraging advanced algorithms and predictive analytics, this software provides users with comprehensive data analysis and actionable insights into New York Stock Exchange and NASDAQ-listed companies. By making this software affordable for everyone, regardless of socioeconomic status, we can level the playing field and drive greater financial inclusion. Conclusion: In conclusion, addressing the digital divide and promoting financial inclusion are imperative for building a more equitable society. By providing access to a data-driven financial analysis tool, Market Leader Game can empower anyone to participate meaningfully in the stock market and unlock opportunities for economic advancement. The goal of providing automated financial analysis services with scalable scorecards is central to this mission, ensuring that everyone has the information they need to thrive in the financial world. Stay tuned for video demonstration of how to make financial equality a reality for all.

Already past the halfway mark of 2024 - can you believe it?! As we are now into the third quarter and well on our way through summer, our research team at LPL Financial provides a Midyear Outlook for what we might be able to expect, given the circumstance we're currently in. As always, there are many variables, but some key takeaways can be found in this quick read: https://lnkd.in/gxCrxYKZ

What was top of mind for investors 2023? Will these topics still be on our radars in the months to come? Read our top 10 most-read articles of last year. 

Is the 'Sell in May and go away' strategy still a wise move in 2023? Dive into a comprehensive analysis that unravels the history and evaluates its modern-day relevance for investors and financial professionals. 📈💼 #SellInMayDebate #FinancialStrategy #MarketAnalysis #InvestmentTrends #HistoricalInsights #2023MarketOutlook #FinanceProfessionals #InvestmentMyths #EquityResearch #TradingPatterns