Sound Advice

Budgeting: The Key to Financial Planning   Although it’s tempting to think that the main issue of concern for planning one’s financial future is accumulating enough money to handle the costs of the years ahead, that’s not really the challenge.   It’s a matter of balancing what’s coming in with what’s going out. What’s coming in during working years is usually income from salaries or businesses owned.   In retirement, incoming cash flow will probably be from some combination of income from investments (and businesses owned), pensions, and social security.   Most of this is readily available information. The problem going forward is the other side of the equation: what you’re spending.   At first glance, understanding these items would seem to be straightforward, but it’s anything but. What first comes to mind are major items such as rent or mortgage payments.   Alongside are food, household incidentals, and utilities such as electric and natural gas....

Has Warren Buffett outperformed the market indexes?  Warren Buffett's performance relative to market indexes has varied over different time periods: Long-term Performance Over the long term, Warren Buffett has significantly outperformed market indexes. From 1965 to 2024, Berkshire Hathaway achieved an average annual return of 19.9% over 59 years, resulting in a total gain of 5,502,284% .  In comparison, the S&P 500 index posted an average annual return of 10.4% during the same timeframe . Recent Performance In recent years, Buffett's performance has been mixed: 2025 (Year-to-date): Berkshire Hathaway stock has jumped 16% while the S&P 500 has dropped 2%  2024: Berkshire outperformed the S&P 500, with returns of 25.5% compared to 25% . 2022: Berkshire's stock increased by 4% while the S&P 500 fell by 18% . 2009-2023: Berkshire's annual return averaged 13%, compared to 15% for the S&P 500 . Market Downturns Buffett's approach has shown particular s...

Can Trutrade help my investments? TruTrade is a company that offers automated trading software and tools for retail traders. Established in 2020 and based in Arizona, USA, TruTrade provides a range of products designed to help traders of all experience levels.   Key Features AI-driven trading algorithms Automated risk management tools Multi-strategy support (up to 10 AI-optimized trading systems simultaneously) Continuous software updates and innovations Hands-free automation for executing trades and managing strategies TruTrade offers various products, including: RipperOne AI: A leading retail automated portfolio management software SignalONE AI: A chartless trading automation platform for larger investment portfolios TruHedge, MarketRipper, TrendFollowing , and VolatilityChaser: Different automated trading strategies Dynamic indicators like TruAcceleration, TruExhaustion , and TruMomentum The com...

Can AI help investors?   AI is already helping investors and is expected to play an increasingly significant role in investment strategies in the coming years.   By 2025, AI is anticipated to transform how investments are made, managed, and optimized. Key ways AI is helping investors include: Enhanced data analysis: AI can process vast amounts of financial and alternative data, identifying patterns and opportunities that might be missed through traditional analysis. Improved stock selection: AI systems can evaluate companies through multiple lenses simultaneously, considering fundamental metrics, technical indicators, news sentiment, and market trends. Sentiment analysis: Advanced AI can perform contextual sentiment analysis on earnings call transcripts, news articles, and social media posts, providing deeper insights into market sentiment. Personalized investment advice: AI can offer truly individualized investme...

Watch the VIX.  When it’s above 40, it’s often a buy signal.   What’s the VIX?   That’s the ticker symbol for what’s formally known as the Chicago Board Options Exchange index of the stock market’s expectation of volatility over the next 30 days.   It’s also known as the Fear Gauge.   As investors become more fearful, the VIX rises. Much of the time, the VIX tends to stay in a range of 10 to 20.   When uncertainty and stress increase, so does the VIX.   When it climbs above 40, it’s a sign that investors are pushing the panic button.   More often than not, that’s a green light, not a red one. The VIX chart above tells the story.   Over the 35-year span, the index first climbed above 40 on September 30, 1998.   It stayed there for the next two weeks. Why? Investors were disappointed by the Fed’s decision to cut interest rates by only 0.25%, half of what they had hoped for. The next jump took place on September 17, 2001 and laste...