Missing out on growth.

Eagle Wealth Management |
 


 

Hello,

When you see headlines like, “Nvidia becomes world’s most valuable company…”1

Or read that a few stocks are responsible for most of the market’s gains…

Or see some newsletter bragging about a X,XXX% return on a single stock pick…

It’s natural to wish you could go back in time, invest in a “sure thing,” and ride the escalator all the way to the bank.

But that just isn’t how investing works.

(By the way, Nvidia experienced the fastest loss in history pretty quickly after reaching the top spot.2)

There are two hard truths we want you to remember when you get that FOMO (fear of missing out) feeling:

  1. There’s no such thing as a sure thing. No one predicted the AI boom that rocketed tech stocks to the stars in 2024.
  2. High-flying stocks are very vulnerable to sudden crashes that also hit without warning.

It’s easy to let headlines overwhelm logic.

Everyone loves a winner, but no one is good at consistently picking them (or predicting the moment when winners turn into losers).

Sure, some folks like to gamble big to win big.

More often than not, gamblers lose big.

(The headlines skip that part, and the losers usually slink off to a corner instead of showing up on the news.)

Economists call that “survivorship bias.”

It’s when we forget that for every winner, there are many losers.

When we draw conclusions from the select few who win big while ignoring the failures, we're likely to make mistakes.

And picking a winner while skipping the losers is all luck.

How do we give ourselves the best chance to invest in market winners?

We've got bad news for you: it’s boring and doesn’t make for great headlines.

We pick a strategy and stick to it.

We diversify.

We check in and adjust based on what we see.

Rinse and repeat.
 

There’s no magic to long-term returns.

Instead, it takes discipline, patience, and consistency.

And that’s what we’re here for. If you’re a client, we’ve built you a financial plan with a roadmap for your retirement, and you have our team at Eagle Wealth dedicated to your success.

If you’re not yet a client and would like to learn more, give us a call at 541-330-0220.  We’re here to help.

­Patiently,

 

Your Eagle Wealth Team

 
 

Webinar Replay Now Available



Thank you to those who joined us Wednesday for our live webinar covering the latest developments for the economy and markets. 

If you missed it or would like to watch it again, you can watch the recording here and view the slides here.

 

Run time: 54 minutes, 17 seconds

 

 

As always, please reach out if you have questions about the webinar or your personal financial situation.  We’re here to help. 
Thanks again for tuning in!
 

 
 

 

Congratulations to Matt Hobson!


We recently headed out as a team to celebrate Matt Hobson and his 10-year anniversary with Eagle Wealth.

Over the past decade, Matt has shown dedication, expertise, and genuine care for the clients of the EWM community.

We are truly grateful for his unwavering service. Thank you, Matt, for your hard work and loyalty. Here's to many more years together!
 



 

The Week on Wall Street

Stocks were under pressure last week as investors appeared to rotate out of mega-cap tech stocks and into areas that may benefit from lower interest rates.

The Standard & Poor’s 500 Index fell 1.97 percent, while Nasdaq Composite Index declined 3.65 percent. The Dow Jones Industrial Average bucked the downward trend, up 0.72 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent for the week through Thursday’s close.3


Dow Leads Again

The week began very differently than it ended.

All three averages rallied over the first couple of days this week, with the Dow leading on both days. Fed Chair Powell indicated the Fed may not wait for inflation to reach its 2 percent target before considering a rate move, buoying the markets.4,5

Then, markets hit a speed bump as investors appeared to take profits and rotated away from mega-cap tech names. The selling broadened beyond tech-related names on Thursday as all but one of the S&P 500's 11 sectors fell.

Early Friday morning, a global tech outage caused disruptions for businesses, governments, and financial institutions, contributing to the weekly decline. Despite its losses in the second part of the week, the Dow finished in the green.6,7,8


Upbeat Economic Data

Although stocks were under pressure, some investors saw “green shoots” in a few economic reports. Housing starts rose 3 percent in June. Building permits also ticked higher during the month. Retail sales were unchanged in June, which was better than expected. Investors were encouraged that consumers were still spending despite ongoing inflation.9,10

 

Source: YCharts.com, July 20, 2024. Weekly performance is measured from Monday, July 15, to Friday, July 19. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.

 

Sources:

1. https://www.cnbc.com/2024/06/24/nvidia-slides-13percent-in-three-days-after-becoming-most-valuable-company.html

2. https://finance.yahoo.com/news/nvidia-sees-over-500-billion-121230302.html

3. The Wall Street Journal, July 19, 2024

4. CNBC.com, July 15, 2024

5. CNBC.com, July 16, 2024

6. MarketWatch.com, July 17, 2024

7. CNBC.com, July 18, 2024

8. The Wall Street Journal, July 19, 2024

9. KPMG.com, July 17, 2024

10. AP.com, July 16, 2024

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

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