Ever wondered what goes on behind the scenes at Summerville's local businesses? Join me, Kimsey Hollifield from Hollifield Financial Group, as I set off on an exciting new journey with our YouTube series, "How Summerville Works." I'll be exploring various local businesses, learning about their day-to-day operations, and meeting people from all walks of life, gaining insights into their worries and aspirations.
In this episode, my June update, I discuss the significance of the S&P 500 passing the 8% test and what it means for investors, as well as two popular investment strategies involving fixed indexed annuities and structured notes. Plus, get the inside scoop on the current state of the bond market and the challenge of the inverted yield curve. Don't miss out on this informative and engaging episode!
Ever wondered what goes on behind the scenes at Summerville's local businesses? Join me, Kimsey Hollifield from Hollifield Financial Group, as I set off on an exciting new journey with our YouTube series, "How Summerville Works." I'll be exploring various local businesses, learning about their day-to-day operations, and meeting people from all walks of life, gaining insights into their worries and aspirations.
In this episode, my June update, I discuss the significance of the S&P 500 passing the 8% test and what it means for investors, as well as two popular investment strategies involving fixed indexed annuities and structured notes. Plus, get the inside scoop on the current state of the bond market and the challenge of the inverted yield curve. Don't miss out on this informative and engaging episode!
Hey, kimsey Hallifield, here with Hallifield Financial Group, i'm coming to you from Puma's Italian ice In summerville, downtown summerville, for this month's monthly update. So you know, i'm making these monthly videos for For all of you and and sharing a couple of things that's going on. One of the things that's going on for us and why I'm sitting here in a hot dog in Italian ice restaurant Is because I'm actually doing something on our YouTube channel now and listen, if you don't subscribe to our YouTube channel, we have some really great content That's really Applicable to all the things that you guys want to know. But also we're doing something called how summerville works, and you know I live here in summerville and a lot of you live in summerville, and I'm going to be going around to maybe 10 or 12 different businesses and seeing kind of what a day in the life is, and One of the best parts of my job as a financial advisor is meeting people from different walks of life and different businesses and learning about. You know what you want, what makes you tick, you know what your biggest worries are, and I'm gonna have a lot of fun with this. Right, because I get to go here in a minute. I get to go back behind the counter and we'll make hot dogs and Italian ice and rinks and people up and it's kind of like Back in my old Chick-fil-a days, you know and and so we're doing, we're doing that. I'm working a landscape company Next week. There's a real thing. You know there's a lot of different things that that we're doing, but it's gonna be about 10 or 12 different Businesses here in summerville and it's gonna be a lot of fun. So be sure to look for that when they come out.
Speaker 1:
But let me get to the stuff that you know. You really want to know right now. We have just passed so the S&P 500 has just passed what's called the 8% Test, and this is really, really important. This has happened 23 times since 1950. If on the 100th day of the trading year, the S&P 500 is up 8%, then the S&P 500 has always recorded a positive year and it has Averaged gaining another 10%. So let me let me repeat that. Okay, if on the 100th trading day of the year, which was last Thursday, the S&P 500 for the year year to date has gone up 8%, then every single time that's happened, the S&P 500, which a lot of you invested in, has posted a positive year and The average is that it's going to go up another 10%. Okay, so very, very strong sign.
Speaker 1:
You know a lot of people will ask me where I think the market's going. Is it going to go up, is it going to go down? I always say that is the wrong question, because the question is What do you want your money to do? You know some people don't, don't want the risks and people don't want to tie to the, to the stock market, right. But but for that question, is the S&P 500 going to go up or down? The history shows every time it has ended on a positive note. So there's a couple of things that you can take from that right. The first thing that you can take from that is It's not a bad time to be If your risk tolerance is right. Like I'm not telling you to take money you want safe and put risk, but if you have some money that you have in the market, it's okay. Like I think over the next year, two years, the market will be up a little bit. So you have to think about that right, it could go down, but history shows that it's not a horrible time to put to invest some money.
Speaker 1:
The other thing here that we've been doing and I'm really excited about this is we have gone back to the S&P 500 for our fixed annuities. A lot of you have the fixed indexed annuities and we have, in years past, we've used some Bloomberg, blackrock, pempo, a lot of different indexes, and you know how these things work right, if the market goes up, your account will go up. If the market goes down, you'll stay flat, and so we've used some different indexes because the S&P 500 was all over the place. But you know we've gone back to using the S&P 500 index and I want to share two very popular strategies with you. The first is what I call the three pennies strategy, and it's an account that, first of all, has no. You won't pay one penny in fees. You have no risk to your money, so you can't lose one penny of what you have invested because the market goes down and if the market goes up, even one penny, then you get. I think right now the rate is about 8%. So I love that because that also comes with a 10% bonus. So think about this strategy here you put some money in, you're going to. You know you're going to get 10% that first year If the S&P 500 goes up at all, then you're going to get another 8%, you're going to get 18%. So for that first year, you know you're looking at 10% to 18% and that has been very, very popular, very popular. But you know, basically, you know we're doing a lot of that where we're using, you know, we're using the fixed index annuity and we're tying it now to the upside of the S&P 500. So, really excited about that, i started doing that about a month ago and it's confirmed now that that I think that was a really good strategy.
Speaker 1:
The next thing I want to share with you guys is a lot of you are using our bank notes. You know our structured notes. Now there are different types of notes, but I'm going to talk about one in particular that this month has a 10.6% interest. 10.6% interest That's from Morgan Stanley. Now that's been really popular. We've already, you know, put quite a bit of money into it. It becomes active.
Speaker 1:
I don't actually have the date in front of me, but it's about, i think it's middle of the month. So we have some time, you know, but we have about two weeks. But it's 10.6% this month and that's been very popular, specifically because a lot of people have bonds. You know we used to see this 60-40 stock bond split and you know, and that really doesn't work anymore. You know that really doesn't work because the bonds pull everything down, because they are in 2% or 3%.
Speaker 1:
I'm going to do another video where I go into bonds a little bit more, but basically understand that right now we have something called an inverted yield curve. An inverted yield curve is something that happens when the short-term interest rates are higher than the long-term interest rates, and the reason is the banks don't want to guarantee an interest rate for a long time because nobody really knows what's going to happen. And so right now we have that where the short one-year rates are really high. You know where we have three-year rates that are 5.4. We have 10-year rates that are even lower than that, and so you know, kind of staying a little bit flexible on those fixed rates, i think is really really important.
