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economy

Water Cooler Wisdom: Third Quarter 2016

October 5, 2016 by Michele Suriano

By Mack Bekeza

The Presidential Election and What to Know

Despite the pleasant performance in the stock market for 2016, investors are becoming more doubtful about the global economy as a whole in regards to how “pleasant” future growth will be. On top of that, The U.S is having one of the most interesting presidential elections in history. With both of the leading candidates making big promises to the public, how will these proposed actions affect the economy as a whole? But perhaps the biggest question and misconception that U.S investors have is “How does the President affect the economy?”

For our response, we want to point out 3 big myths about how the President affects the economy

            1. Capital Markets perform better when Republicans are in the White House:  

Although many consider the Republican party as the “pro-business” party, if you look at the returns of the Dow Jones Industrial Average since 1897, the markets do not give a hoot about who is president.

2. Major pieces of legislation get passed once the new President assumes office:

With the exceptions of the Affordable Care Act and Dodd-Frank, The United States rarely makes major policy changes in one major swoop, rather in small increments.

3. The President has as much of an impact on the economy as consumers and businesses:

     Although the media places major scrutiny on the President over the U.S Economy, government spending only accounts for 17.7% of total GDP, while the remaining 82.4% comes from consumer spending, private investments, and foreign trade.

So… will this presidential election completely change the way we invest? More than likely no. However, it is important to note the U.S GDP is expected grow between 1.5 to 2% over the next decade. This is primarily due the recent and projected dismal growth in the U.S labor force along with over $30 trillion in private wealth being transferred to younger generations. In other words, it is more crucial to observe how Millennials begin to take charge of the U.S Economy rather than who becomes president.

Attached are slides that provide more detail regarding presidential elections and major leading economic indicators.

©2016 Castle Rock Investment Company. All rights reserved. Please share your insights and comments with us at Mack@CastleRockInvesting.com.

 

Filed Under: 401K, Advice, Blog, Castle Rock Investment Company, Fiduciary, Industry News, Legislation, Mack Bekeza, Michele Suriano, Newsletters, Personal Finance, Retirement Plans, Retirement Transition Service, Uncategorized, Water Cooler Wisdom Tagged With: #SaveOurRetirement, 401k, babyboomers, Clinton, DNC, economy, election2016, GDP, GenY, GOP, Invest, investments, IRA, Labor, Millenials, money, retirement, save, Trump

Brexit: What’s the Big Deal and What You Should Know About it?

June 27, 2016 by Michele Suriano

By Mack Bekeza

As you may or may not know, The United Kingdom (”UK”) has voted to leave the European Union (“EU”). For decades, the UK has argued left and right whether or not their relationship with the EU is worthwhile. Think of this as an old couple who have been constantly bickering at each other and all of a sudden one of them throws water at the other person telling them to take a hike but then asks them if they can still be friends. In other words, the UK will no longer be a part of the EU but still needs them as a crucial trading partner.

In the midst of this, global markets have experienced some wacky volatility. As of June 27th 12 P.M EST, the British Pound was trading nearly 16% less than it did on the previous Friday morning. The S&P 500 has also experienced a 4% decline as of June 27th 12 P.M EST compared to the previous Friday morning, not to mention that the next jobs report is expected to be dismal, causing further volatility. On the other hand, Gold has shot up and Treasury yields dropped as investors flee to safety, this is usually expected when currencies drop drastically like this.

So what does this all mean to us as investors? Is this the beginning of a global recession? The answer is that we cannot make these assumptions just yet. However, it is crucial to remind ourselves that we should invest for the long term and keep in mind our retirement goals. It is also important to keep in mind that this will be a great opportunity for those who Dollar-Cost Average to take advantage of the lower prices as we should expect a rebound to happen eventually. And always remember the famous quote from the British Government during WW2, “Keep Calm and Carry on!”

© 2016 Castle Rock Investment Company. All Rights Reserved. Please share your insights and comments with us at mack@castlerockinvesting.com or call us at 303-719-7523.

Filed Under: Blog, Brexit, British Pound, Castle Rock Investment Company, Currency, Europe, Industry News, International Markets, Legislation, Mack Bekeza, Uncategorized, US Dollar Tagged With: bekeza, Brexit, economy, EU, Eurozone, Pound, Sterling, UK

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Castle Rock Investment Company, formed in 2006, is an independent woman-owned SEC-registered investment adviser located in Castle Rock, Colorado. We specialize in individual financial plans and qualified service plans.

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Water Cooler Wisdom: The Day Finally Arrived

Water Cooler Wisdom The Day Finally Arrived On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act of 2017 into law. The long-awaited tax legislation includes a wide array of changes, but a few interesting highlights are listed below. Reduces the top corporate tax rate from 35% to 21%. Changes the taxation […]

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