How Stocks Perform In A President’s First Year

The SEC has charged Vuuzle Media Corporation, a purported online live streaming and entertainment company, and its founder Ronald Shane Flynn (a.k.a. Ronnie Shane) with fraudulently offering over $14 million in securities to investors across the United States using an aggressive boiler room sales scheme.

Appearing on the inaugural 2021 Allianz Global webcast Tuesday, Guy Adami of CNBC’s “Fast Money” did not hold back his concerns about corporate recklessness. Fueling that recklessness is a Federal Reserve that has been “extraordinarily accommodative” over the past 12 years or so, Adami said.

For many Americans, 2020 was a challenging year, as people of all creeds-families large and small; younger generations and seniors; essential and non-essential workers-adapted to changes brought forth by the COVID-19 pandemic and the resulting economic downturn.

For most people, life is busy and thinking about finances takes a back seat, said Martin Seay, department head and associate professor in Kansas State University’s Department of Personal Financial Planning. Financial advisors can help clients get an annual checkup of sorts, financially speaking.

Sports Illustrated magazine collected a few years ago in an article that 78% of National Football League players filed for bankruptcy or financial stress within two years of retirement and approximately 60% of NBA players are ruined within five years of retirement.

The Senate confirmed Janet Yellen as the first woman to head the Treasury Department on Monday. In an 84-15 vote lawmakers approved Yellen to serve as Treasury secretary as Congress moves to weigh in on President Joe Biden’s cabinet selections while bracing for the second impeachment trial of former President Donald Trump.

Financial market history will show 2020 as a year that saw the shortest bear market on record as the initial outbreak of COVID-19 and fears about its rapid spread triggered a 34% decline in the S&P 500. While this stock price drop was on par with the average bear market, the downturn ended in just over a month’s time.

Women investors in 2020 reported significantly higher levels of concern about a U.S. economic recession in the next 12 months than they did in 2019 as well as greater concern about a bear market in the next 12 months than they did the prior year, according to Nationwide’s Advisor Authority study.

As the pandemic enters its most intensive phase yet and job growth stalls, just 39% of Americans surveyed say they could comfortably cover an unexpected expense of $1,000. Underscoring the shaky finances of many Americans, Bankrate’s January Financial Security Index finds that fewer than 4 in 10 U.S. adults could absorb the cost.

WASHINGTON, Jan 21- Janet Yellen, President Joe Biden’s nominee for U.S. Treasury Secretary, highlighted the new government’s focus on domestic investment to improve workers’ position and infrastructure projects before embarking on new trade agreements. Yellen, whose nomination will be put to a vote in the Senate Finance Committee at 1500 GMT on Friday, was…

The Securities and Exchange Commission announced today that President Joe Biden designated Allison Herren Lee as acting chair of the agency. Biden plans to nominate Gary Gensler as chairman of the SEC. Lee will serve as acting chair until the Senate completes Gensler’s confirmation hearing.

The annual out-of-pocket costs for traditional medical expenses likely will be about $4,500 to $6,500 per year, per person — not insignificant, but certainly a number that can be addressed by careful planning. But there’s one more expense to keep in mind: long-term care.

Setting money goals in 2020 was likely an exercise in futility. In fact, 29% of Americans with financial goals for 2020 said COVID-19 forced them to put some of those aspirations on hold until 2021, according to a NerdWallet survey conducted online in late fall by The Harris Poll among over 1,700 U.S. adults with 2020 financial goals.

The out-of-the-blue economic jolt of the pandemic set off an urge among many households to double down on building emergency savings. A T. Rowe Price survey of still-employed retirement savers last summer reported that 50% said saving for emergencies was a major financial objective, up from 38% the previous year.

Inflation is an economic phenomenon of price increases. Traditionally a result of increased raw material pricing (like steel or lumber), inflation also occurs when there is increased demand or less supply. Both roads lead in one direction: higher prices.

The economic news has continued to soften in recent days. December saw layoffs go up and the number of jobs decline, and, this morning, the retail sales numbers dropped. Consumer confidence has gone down. Clearly, the economic headwinds from the pandemic are getting worse.

A big part of being financially fit is managing risk. For example, to manage the risk that we die prematurely, we get life insurance. We all have heard the stories of when you could get a gallon of gas for less than 25 cents.

Refinancing your student loans can help you save thousands of dollars in interest and pay them down faster, allowing you to save money for an emergency or other purposes. Interest rates are extremely low right now since the Federal Reserve kept short-term interest rates at nearly zero to try to stimulate the economy.

WILMINGTON, Del.- President-elect Joe Biden released initial details of a $1.9 trillion coronavirus relief plan that aims to stem the surging pandemic, speed up vaccinations and provide further financial help to Americans, as well as local governments and businesses dealing with almost a year of economic declines. Biden is also asking for Congress to approve…

Financial services trade associations raise substantial sums of political action committee funds, money that supports lobbying efforts on important issues. In light of last week’s mob attack on the Capitol and the tense political atmosphere, trade associations are reviewing donor policies.

Many economists are largely positive on the economy going forward: financially speaking, the COVID-19 pandemic could’ve been a lot worse, and we’re well on our way to recovery. Several sectors remain strong, such as the housing market, even as the pandemic continues to shrink overall production.

The Securities and Exchange Commission today charged fund manager Eric C. Malley and his company MG Capital Management L.P. with defrauding retail investors in two real estate funds managed by MG Capital.

Certified Financial Planner Board of Standards reported strong increases in the number and the diversity of CFP professionals in 2020. The number of CFP professionals reached an all-time high of 88,726, a growth of 2.7% over 2019 numbers.

Your clients’ ability to retire early depends somewhat on what sort of lifestyle they’re anticipating during their retirement years. If they plan on traveling extensively or pursuing expensive activities, they might not be able to afford to retire as early as someone with more modest ambitions.

Retirement savers who have built up sizeable balances in tax-deferred retirement accounts like traditional IRAs and 401 plans, may at some point want to consider converting some of these balances to Roth IRAs. Whether paying tax today in exchange for tax-free future withdrawals makes sense depends on several factors.

—Newly released transcripts show that many Federal Reserve officials had concerns in late 2015 over whether they were making a mistake in raising a key interest rate for the first time in nearly decade. The Fed manages interest rates to achieve two goals— keeping inflation under control while promoting maximum employment.

As part of coordinated resolutions with the SEC and the Department of Justice, Deutsche Bank has agreed to pay more than $120 million, which includes more than $43 million to settle the SEC’s charges.

The effects of 10 months of pandemic followed by a politically inspired riot on U.S. Capitol grounds in the last weeks of a presidential term would ordinarily torpedo the stock market. But the Dow Jones Industrial Average (DJIA), S&P 500 and other indexes have not only stayed strong, they have also hit record highs during in the first days of 2021.

Homebuying can be overwhelming and stressful, and that’s when you’re trying to purchase property in normal times. Opting to buy a home during the current climate, amid the coronavirus pandemic, can add even more uncertainty and stress.

As of December, U.S. employment remains 9.8 million jobs below its pre-COVID peak. The spending by consumers on services has recovered only 66% of the losses from the spring lockdown. The pandemic’s current, more deadly wave promises to reinforce and worsen this disruption.

The Congressional Review Act was a little-used device that Republicans used frequently early in the Trump presidency. It’s a model that a Democrat-controlled Senate could employ to kill two rules that invited public scorn.

The disinvestment during the pandemic, especially in developing regions, will compound over the decade, slowing down the economic spurt expected as the pandemic subsides, according to the World Bank Global Economic Prospects report.

JPMorgan Chase strategists say that the cryptocurrency Bitcoin could reach $146,000 in the long term as it starts to challenge gold as an asset class. The forecast, put forth by strategists Nikolaos Panigirtzoglou, said in a note Monday that Bitcoin’s market capitalization, which is currently about $575 billion, would have to jump 4.6 times to reach gold investment levels.

For many of us, the New Year means a fresh start and the chance to set new goals. As you consider your resolutions, you may want to add “strengthen my financial foundation” to the list. Here are five ways you can put yourself on firmer financial footing in 2021.

The COVID-19 pandemic has accelerated the cost of nursing home care as providers have had to implement new safety and training protocols and buy more personal protective equipment for employees, said Gordon Saunders, a senior brand marketing manager at Genworth who manages the annual survey.

As we enter 2021, most of us are anxiously awaiting a happier year ahead. Traditionally, we mark the fresh calendar year with New Year’ s resolutions to keep us hopeful and motivated— particularly when it comes to our finances. But here are three financial resolutions to warn your clients to stay away from.

Readers had service on the mind in 2020, as COVID-19 wrecked the economy and made face-to-face service next to impossible. The most-read stories at Advisor News reflected that service anxiety.

If 2020 has taught us anything, it’s to be prepared for anything and everything. This mindset should also extend to your finances. Here are some end of year financial planning steps advisors should encourage clients to take to ensure starting 2021 on the right foot.

The Securities and Exchange Commission today charged Gregory Altieri, of Melville, New York, for operating a fraudulent Ponzi-like scheme that defrauded current and retired police officers and firefighters, among others, and misappropriating investor funds.

The Securities and Exchange Commission today announced that it filed an emergency action and obtained an order imposing an asset freeze and other emergency relief against Virgil Capital LLC and its affiliated companies in connection with an alleged securities fraud.

The Securities and Exchange Commission today announced that President Donald J. Trump has designated Elad L. Roisman as Acting Chairman of the agency.

While it’s difficult to call 2020 the worst year ever, it’s certainly a top contender. When you look through history, there were plagues in early times that wiped out massive amounts of the population. Yes, far worse than the coronavirus pandemic. Here are a few years that were surely worse than 2020.

Securing startup funding can be a barrier for entrepreneurs trying to get a new business off the ground. For many owners, the idea of asking a bank or single lender for thousands or even millions of dollars adds an entirely new layer of stress on top of the already overwhelming task of launching a business.

Usually, pulling out money from a tax-deferred account before age 59½ would set off a 10% penalty on top of any income taxes. But under the temporary rules that are part of the coronavirus relief bill, people with pandemic-related financial troubles can withdraw up to $100,000 from any combination of their tax-deferred plans.

According to research from RBC Capital Markets that has tracked the returns of the S&P 500 dating back to 1933, the best outcomes for markets have been with a Democratic president and split Congress, with an average annual return of 14%. The second best outcome was a tie between a full Republican sweep and a Democratic president with a Republican Congress.

The evidence produced by economists, scientists and mathematicians is impossible to ignore: The world’s financial markets are complex beyond our cognitive abilities and fundamentally unpredictable.

The Securities and Exchange Commission announced today that it has filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.

This week the Federal Reserve’s Open Market Committee meets for the last time this year, and the last time during Donald Trump’s presidency. The thing is, the U.S. is not alone: Recovery’s going to be tough in a lot of places, even as COVID-19 vaccines start to roll out.

Global stock markets rose Wednesday after President Donald Trump suggested he may veto a $900 billion economic aid plan and the World Bank said it expects China to eke out 2% growth this year and accelerate in 2021.. London and Frankfurt opened higher and Shanghai, Tokyo and Hong Kong rose in light trading ahead of Christmas.

The Securities and Exchange Commission today announced that it filed an emergency action against California-based real estate development company SiliconSage Builders LLC, aka Silicon Sage Builders, and its sole owner, Sanjeev Acharya, in connection with an alleged $119 million fraudulent offering.

Congress passed a bipartisan $900 billion COVID-19 relief bill after intense negotiations over its final details. $600 direct payment checks for every adult and child earning up to $75,000. Individuals earning between $75,000 and $99,000 would get smaller checks, and the benefit cuts out entirely for individuals earning over $99,000.

Student loans can make paying for college easier when you don’t have savings to pay out of pocket. An estimated 43 million borrowers owe federal student loans, according to the Department of Education. Of the $1.7 trillion in outstanding student loan debt owed, private student loans account for $131.8 billion of that total.

The SEC today announced charges against California-based biotechnology company Decision Diagnostics Corp. and its CEO, Keith Berman, with making false and misleading claims in numerous press releases that the company had developed a working, break-through technology that could accurately detect Covid-19 through a quick blood test.

The Securities and Exchange Commission today announced the creation of the Security-Based Swaps Joint Venture, a collaborative venture among several SEC divisions and offices that will be responsible for coordinating functions related to the regulation of security-based swaps.

Mortgage rates continue to fall as home equity continues to rise. As of the quarter ending June 2020, mortgage refinance loan values totaled more than $580 billion. That number is up from $306 billion last quarter and more than double from one year ago, according to U.S. Mortgage Originations.

Commissioners were expected to discuss updating “rules that govern investment adviser marketing to accommodate the continual evolution and interplay of technology and advice, while preserving investor protections.”

The Securities and Exchange Commission today charged China-based company Luckin Coffee Inc. with defrauding investors by materially misstating the company’s revenue, expenses, and net operating loss in an effort to falsely appear to achieve rapid growth and increased profitability.

The markets responded to ongoing stimulus talks as Senate Republican leader Mitch McConnell said he was “optimistic” Congress would be able to reach a deal sometime soon, while Senate Democratic leader Chuck Schumer said leaders were “making progress.”

Nearly 40 percent of those planning to retire say the pandemic has disrupted their intentions, according to the Edward Jones/Age Wave Four Pillars of the New Retirement study. You might have been thinking about retiring early — can you still do so?

Talk of student loan forgiveness has borrowers looking forward to 2021. But many already benefited from some unprecedented events in 2020:. The current student loan forbearance is scheduled to end Jan. 31.

Global consulting firm Protiviti has released the findings of its annual Finance Trends Survey, which reveal CFOs and senior finance executives are facing a growing list of responsibilities and demands from internal stakeholders as the pandemic has stress-tested the finance labor model in real time. More than 1,000 finance leaders participated in the…

As we consider what may happen in 2021, it’s useful to reflect on how we ended 2020—both the good and the bad. For the good, the election is behind us. Vaccines look to be more effective than anyone expected. Jobs and confidence are holding up surprisingly well as the economy adapts. In many ways, things are much better than we thought.

The Securities and Exchange Commission has charged New York-based brand-management company Sequential Brands Group Inc. with failing to impair its goodwill as required by accounting principles and the federal securities laws.

The National Association of Insurance Commissioners ended their fall meeting by electing a new slate of 2021 officers, with President-elect Dean Cameron announcing that he has COVID-19. Cameron, 59, is a former longtime Idaho state senator and that state’s insurance commissioner.

The Securities and Exchange Commission today announced that General Electric Co. (GE) has agreed to pay a $200 million penalty to settle charges for disclosure failures in its power and insurance businesses. In 2017 and 2018, GE’s stock price fell almost 75% as challenges in its power and insurance businesses were disclosed to the public.

The pandemic has forced us to change the way we connect with each other. Access to and familiarity with virtual meeting programs like Zoom, GoToMeeting and Microsoft Teams has become a life skill for people and businesses wanting to maintain any semblance of normalcy. Our firm has found some benefits to virtual meetings.

The Securities and Exchange Commission today charged ICE Data Pricing & Reference Data, a global securities pricing service and New York-based registered investment adviser, for compliance deficiencies relating to its delivery to clients of prices based on quotes it received from a single market participant, also known as single broker quotes.

Fifty-four percent of consumers who reported having anxiety when it comes to their financial situation say the pandemic is the cause of at least half of their stress. However, Americans are still taking action to better their financial futures, with 60% of respondents saying they are actively working to improve their financial situation.

The Securities and Exchange Commission today announced that UK-based investment adviser BlueCrest Capital Management Limited has agreed to pay $170 million to settle charges arising from inadequate disclosures, material misstatements, and misleading omissions concerning its transfer of top traders from its flagship client fund.

Investors who tried to “cut losses” and exited the market likely did so at the wrong time and missed out on the beginning of the upturn. Unfortunately, this is not uncommon– investors who overreact to market declines often find themselves on the investment sidelines just when a new rally begins.

The Securities and Exchange Commission today announced settled charges against The Cheesecake Factory Incorporated for making misleading disclosures about the impact of the COVID-19 pandemic on its business operations and financial condition.

The first don’t Orman recommends is do not retire too early even though there is a small but burgeoning ‘early retirement’ movement. During a podcast, Orman was asked about FIRE – that’s “financial independence, retire early.” Her blunt response was, “I hate it!”

Private job growth dropped from a strong 906,000 last month to 344,000, again well below the expected 540,000. Even if we adjust for the effects of expiring temporary census jobs, at 93,000, this is still a notable weakening of what until now had been a very resilient employment picture.

The Securities and Exchange Commission announced that SCANA Corp. and its subsidiary South Carolina Electric & Gas Co. (SCE&G) have agreed to settle the SEC’s lawsuit charging them with defrauding investors by making false and misleading statements about a nuclear power plant expansion that was ultimately abandoned.

The Securities and Exchange Commission today charged disbarred attorney, Richard J. Rubin, and licensed attorney, Thomas J. Craft, with fraud for their roles in a legal opinion letter scheme to fraudulently facilitate the sale of millions of shares of microcap securities to retail investors.

The SEC charged New York resident Mark Alan Lisser with fraud for operating at least two boiler rooms, on Long Island, New York and in Boca Raton, Florida, through which he raised approximately $2.1 million from at least 71 retail investors and misappropriated more than $900,000 of their funds.

A recent IRS ruling tying up a loose end in the 2020 economic-relief law could force many small businesses to pay taxes on government aid meant to help through the pandemic. The IRS decision got lost in the swirl of news out of Washington last week, including that the Treasury Department moved to restrict the Federal Reserve’s emergency lending.