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Recap: September 2019

Recap: September 2019

| October 01, 2019
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Hello,

I hope everyone had a great month of September! Thanks again for joining the Clay Financial Newsletter. Any and all feedback would be appreciated. Please let me know what you liked, didn't like, what you want to see more or less. Of course let me know if I made a mistake or if you have any questions. This will be an ongoing project and I appreciate you joining me on making a newsletter! 

Personal Finance Tip: 

Dollar Cost Averaging - Contributing a fixed sum of money periodically has shown to have great results when it comes to investing in the stock market and can avoid a lot of the stress as well. 

ie... Chris purchases $100 of a Mutual Fund every month. If the price of the fund goes up, Chris still buys $100 but can only buy less. Inversely, if the price goes down, Chris buys more of the fund. This averages out over time and is an excellent strategy for retirement investing.

Macro News 

Impeachment:

Financial Markets had a lot to take in during September. The Democratic Party has started an Impeachment inquiry against Donald Trump for possible abuse of power during a Ukraine phone call. Financial markets usually handle uncertainty like this negatively but markets have held steady thus far. 

 

Trade War:

The main focus for the Market has been the ongoing Trade War between the USA and China. The entire trading day can be reversed dramatically by a tweet by Trump. The President yields a lot of power with his twitter account and raises the question if the markets depend to much on his tweets. Consumer spending has been a large positive for investor confidence but it seems that this could be the next domino to fall as the trade war continues with no discernible end. 

 

IPO Market: 

An IPO, initial public offering, allow for institutional and retail investors to purchase shares of a company for the first time. WeWork is a shared office space company that was value around $42 billion and was set to IPO soon but was shelved after questions rose about the company's profitability and its CEO, Adam Neumann. The company is now valued around $12 billion. This may be the most horrific IPOs in recent memory. 

Thank you and have great month of October! 

Thanks,

Clay Financial

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