Keep Your Stock Market Profits and Decide if You're Going to Buy a Home
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The Market Can Only Decline for Two Reasons
And the Fed’s upcoming interest rate decision is the first.
Everyone expects the Fed to lower interest rates, but the Fed doesn’t always do what Americans expect.
Investors will react if they don’t lower interest rates on September 18th, and the stock market slump might get rebooted.
However, I say “might” because retail sales figures are another factor that can keep the stock market steady.
Equities and their derivatives (stocks, options, etc.) will rise if retail sales data is great. But if the data is lackluster, the opposite could occur.
The way I see it, there are three possible outcomes:
Both factors are favorable, causing the market to increase.
Both factors are disappointing, and stocks are dragged back to last week’s lows.
The data is split, and we’re in for a big surprise.
Here’s what you can do to profit from either outcome:
Use something called a stop-loss.
Stop-losses help you prepare for downswings by automatically buying or selling shares of a company when it reaches a specific price point.
For example:
Apple is currently $222.50 (Sept. 15, 2024). If I place a stop-loss order for $212.50 in a downtrend, the order will only be filled if the price falls to $212.50.
Use it wisely!
67 Million Americans Can’t Afford a $250,000 Home
For 67 million Americans, the American dream seems more like a nightmare, as they can’t afford a $250,000 home.
Unfortunately, that’s well below the median-priced home at $495,750, which 77% of Americans can’t afford.
There’s no denying that we’re in a housing crisis. Yet, both presidential candidates have plans to address this problem.
Presidential candidate Kamala Harris wants to give first-time homebuyers $25,000 in down-payment support, a $10,000 tax credit, tax incentives for builders who build starter homes, and tax incentive expansions for building affordable rental housing.
Former President Donald Trump wants to use federal land to alleviate the housing shortage.
The Federal government owns roughly 28% of U.S. land, and Trump wants to sell it to developers who “promise” to keep a portion of the new builds affordable. He also wants to expand tax credits for first-time homebuyers.
It seems that Harris plans to solve the issue by working directly with homebuyers. Meanwhile, Trump will likely trust this process to developers.
If you plan to buy a home soon, will that news affect how you vote this November?
Great Investors Know This, and You Should Too!
Long-term investors should know how to read a stock quote. The information you get from it influences all of your decisions.
It can help you understand whether a stock is increasing or decreasing, how quickly trends are moving, your potential return on investment, and so much more!
If no one ever taught you how to read one, allow me to help:
Chart: The squiggly green line is called a Chart. It tracks the stock's performance over time; you can select a specific time period if you’d like.
Table: The information underneath the chart is called the stock Table. It gives details about the stock you can’t get from the chart.
Open: The Open tells you the stock's price when the market opened that day. Compare it to the current price to identify if the stock price is increasing or decreasing.
High: This is the highest price the stock was that day.
Low: This is the lowest price the stock was that day.
52-Week High: This is the stock's highest price over the last 52 weeks.
52-Week Low: This is the stock's lowest price over the last 52 weeks.
Next week, we’ll cover Div Yield, P/E Ratio, Mkt Cap, and much more.
Tools and Resources
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