Don’t run from the market volatility – embrace it!

Like we discussed in our most recent market commentary video, investors like to sell in May . . . and that is exactly what investors are doing! The first two trading days of May haven’t been the best if your relying on short term bullish trades to make you money. In fact, I’ve had a few phone calls and emails from folks wondering if the bull market is over or if the market is finally due for a bearish correction. While no one knows for sure what’s going to happen, there are a few things that I would tell the investors and traders of the world. Investors: I would urge anyone with money currently in the market to relax . . . stay the course, ignore the volatility and focus on the long term trends (which are still bullish) and the global fundamentals (which are not in the danger zone as
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Categories: Markets and Strategy.

The Return of the Global Markets

The following is a portion of Iron Gate Global Advisors letter to clients. We removed specific investment advice, stock reviews and advice. That is for our clients only. For more information contact Brett Pattison at brett@igga.dev.  As the name of our firm mentions, we are global investors. We like to search the globe for those markets, countries and companies that are cheap (from a valuation perspective) and poised to grow. Over the past three years we have been allocated primarily to the good ole U.S. of A. This has turned out to be the right decision as the U.S. market (S&P 500) has out-performed the other global markets by 58.95%. The table below shows you the 2011 – 2014 performance numbers for the global markets. As we entered 2015 Brian and I talked with one another, and many of you, about the real possibility that the U.S. markets incredible streak
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Categories: Markets and Strategy.

What to do when the market is down 2%

Finally! A kick in volatility! Here’s some quick advice to both investors and traders. Investors: Don’t do anything. Relax. Stay the course. If the market volatility has you so freaked out then you need to seriously consider having someone else make the decisions for you. Traders: Take advantage of this volatility! Here’s a few ideas . . . Sell some puts. Be a contrarian and sell some puts on stocks that you wouldn’t mind owning. Stocks that have gotten away from you the past few months. Sell some iron condors. With the month of May fast approaching (where the market typically does nothing), we could be stuck in a trading range for a month or two. Take advantage of that by selling an iron condor. Below is an idea of how to construct it. Of course it’s just an idea NOT a recommendation. Sell some put spreads. If your portfolio
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Categories: Markets and Strategy.

A much needed boost for industrials

The Industrial sector has been one of the biggest disappointments for us so far in 2015. Typically it’s a sector that outperforms the market, and most other sectors during this time of the year. In fact historically since 1950 between the months of Oct. – April, it’s the third best performing sector. (see below).                             This year things have been different, not enough to destroy our confidence in historical returns, but it has been different. Growth has been lagging in the industry as a result of global growth in key countries slowing and an energy sector that has been decimated. The 2015 YTD performance of the industrials sector, as of yesterday was -.71%. As we always do, we worry about our clients money. Knowing that you can’t always get everything right all the time, the poor performance of
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Categories: Markets.

Will the market volatility continue in April?

In this video IGGA Portfolio Manager Brett Pattison reviews what happened in March in the global markets. He also discuss what may happen in April as well as what “sweet chicken” is all about. For Iron Gate clients this video will help resolve any concerns you may have had with recent volatility. To discuss any of the items in further detail please contact Brett Pattison at brett@igga.dev.
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Categories: Markets and Strategy.

The 8th Wonder of the World

Albert Einstein once said . . . “Compound interest is the eighth wonder of the world. He who understands it, earns it . . . he who doesn’t . . . pays it.” No doubt Einstein is correct . . . time is the essential component to compounding your wealth over time. It’s something that every parent should be teach their kids, every grandparent should be teaching their grand kids and every school in this country should be teaching it in the classroom. To illustrate the importance of this principle here’s a story of one of the greatest American’s that has ever lived, Benjamin Franklin . . . Let’s take another look using an ETF (Exchange Traded Fund) that tracks the S&P 500, the SPY. If you were to invest in the SPY back in 2005 (10 yrs. ago) you would have a return of 75.37%, a very nice gain. However,
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Categories: Personal Finance.

9 Facts about Retirement

Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you. Many consider the standard retirement age to be 65. One of the key influences in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65.¹ Every day for the next 15 years, another 10,000 baby boomers will turn 65. That’s roughly one person every 8 seconds.² In 2010, people aged 65 and older accounted for 13% of the population in the U.S. By 2025, they are expected to make up 18% of the population.³ Ernest Ackerman was the first person to receive a Social Security
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Categories: Personal Finance.

4 things you can do in today’s market sell off

There is a whole lot of red on my screen today! Below is what the current markets look like. The S&P 500 (/ES) is down 1.31% . . . the Nasdaq (/NQ) is down 1.55%. It seem like whenever a day like this comes that people are calling for the end of the bull market.             While no one knows if that is a legitimate call or not (we will know in the coming months), there are a few things that people can do during a little sell like we are experiencing today. 1. Sell some puts. If you’re in need of income or if there are stocks that you really like that you are not yet in, consider selling some puts. We talk more about this strategy in our Finding Income in Today’s market video. Click here to see watch. With the rise in volatility and the
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Categories: Markets and Strategy.

The Week that Was

Each week we try our best to provide our thoughts on the market and other stories happening around the globe. We do this by writing blog posts and by using other forms of social media including Twitter. For those of you not following us on Twitter we thought we would show you what you’re missing.  For those that do follow us then this will be a good recap of the week that was. Please know that we did not post everyone of our Tweets just a few of our favorites. Some of the links are below in case you missed the story. If you would like to follow us on Twitter just click the links below . . . Brett Pattison @brettmpattison Brian Hunsaker @BrianWHunsaker As always, please remember these are just educational thoughts and not recommendations to buy or sale any security.                  
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Categories: Markets.