Build Your Wealth: Personal Finance & Investing Insights

Current events Interest rates

2 Reasons Taming Inflation Won’t Be Easy

Inflation is at 40-year highs. The Federal Reserve has started raising interest rates to cool the economy and tame inflation. But it won't be easy. Given the strength of household balance sheets and that the Fed is raising rates from zero, prepare for inflation to stick around. (more…)

Kristin McKennaApril 20, 2022

Forbes Investing During a Crisis

How Stocks Perform Before, During, and After Recessions May Surprise You

No one knows when the U.S. will enter a recession again. And this is precisely why it's important to always be prepared for an economic or market downturn rather than try and predict it. Investors may be surprised to learn that in the last 69 years, on average, stocks did…

Kristin McKennaApril 11, 2022

Financial Planning Investing During a Crisis Managing Risk

Ways to Prepare Your Finances for Unknowns, Including Recessions or Market Downturns

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.” - Peter Lynch Talking heads in the media and permabears love doomsday scenarios. They sky is always about to fall. Sometimes they're right, most times they're wrong.…

Kristin McKennaMarch 28, 2022

Current events Forbes Investing

It’s Been One of the Top 5 Worst Starts to a Year for Stocks and Bonds

We all know 2022 hasn't been kind to investors so far. But according to BlackRock, it's been one of the worst two months to start a year on record. The S&P 500 had its fifth worst January - February in history and bonds wrapped the second worst ever start to…

Kristin McKennaMarch 21, 2022

Bonds Interest rates

Does the Fed Funds Rate Affect Mortgage Rates and Interest on Cash Savings?

What does it mean for investors, homebuyers, and individuals with short-term cash deposits when the Federal Reserve raises interest rates? While rates don't move in lockstep with the Federal Funds rate, they do tend to take a similar path. The magnitude of moves will differ and in many cases, mortgage…

Kristin McKennaMarch 16, 2022

Diversification Forbes Investing Investing During a Crisis Managing Risk

3 Biggest Mistakes Investors Make in Volatile Markets

Investing through market volatility can be challenging. Should you go to cash? What investments perform the best during a market selloff? Is it a good time to consider tax-loss harvesting or buying the dip? Often, the best time to evaluate or make changes to your portfolio is before volatility arrives,…

Kristin McKennaMarch 7, 2022

Bonds Diversification Interest rates Investing

Returns of Stocks and Bonds Before, During, and After Interest Rate Hikes (Charts)

The Federal Reserve is going to be raising interest rates (via the target Federal Funds rate). This is likely to happen next month. Rising interest rates affect the stock and bond market in different ways. Interest rates don't have a uniform impact on sectors within each broad asset class, either.…

Kristin McKennaFebruary 22, 2022

Asset Management Bonds Diversification Forbes Interest rates

Why is the Bond Market Down?

As a lifelong Patriots fan, I subscribe to the do your job mantra. In a portfolio, every asset class has a job to do. For bonds, it's to provide stability and income. And historically, it has done a good job. According to data from Schwab, since 1981, the Bloomberg Barclay's…

Kristin McKennaFebruary 21, 2022

Current events Diversification Forbes Interest rates

How Do Stocks Perform When Interest Rates Rise?

The Federal Reserve is planning to raise interest rates (the Federal Funds rate) earlier than expected to cool down the hot economy. The stock market is reacting swiftly: the Nasdaq 100 is in correction territory. What can investors expect from the stock market when interest rates rise? (more…)

Kristin McKennaFebruary 7, 2022

IPO Stock options Sudden Wealth

The Stock is Down, But You’re in a Post-IPO Lock-up

More companies entered the public markets in 2021 than any other year on record. From traditional IPOs or SPACs, and even direct listings, it was a banner year for exits. Unfortunately, the sharp pullback in the equity market to start 2022 is leaving employees and shareholders subject to a lock-up agreement in…

Kristin McKennaJanuary 31, 2022

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