McKee Financial

2-24-2020 Newsletter: Should You Care What the Financial Markets Do Each Day?

There are a lot of emotions surrounding the market this week & rightfully so.  A great question to at least consider is if you should care what the financial markets are doing each day.  Hopefully, the article below will help answer that question or at least give you a different perspective. 


Should You Care What the Financial Markets Do Each Day?

Focusing on Your Strategy During Turbulent Times.

Provided by  C. Brian McKee, RFC®, CKA®


Investors are people, and people are often impatient. No one likes to wait in line or wait longer than they have to for something, especially today when so much is just a click or two away.


This impatience also manifests itself in the financial markets. When stocks slip, for example, some investors grow uneasy. Their impulse is to sell, get out, and get back in later. If they give in to that impulse, they may effectively pay the price.


Across the 30 years ended December 31, 2018, the Standard & Poor's 500 posted averaged annual return of 10.0%. During the same period, the average mutual fund stock investor realized a yearly return of just 4.1%. Why the difference? It could partly stem from impatience.1

It's important to remember that past performance does not guarantee future results. The return and principal value of stock prices will fluctuate over time as market conditions change. And shares, when sold, may be worth more or less than their original cost.

Investors can worry too much. In the long run, an investor who glances at a portfolio once per quarter may end up making more progress toward his or her goals than one who anxiously pores over financial websites each day.


Too many investors make quick, emotional moves when the market dips. Logic may go out the window when this happens, in addition to perspective.


Some long-term investors keep focus. Warren Buffett does. He has famously said that an investor should, "buy into a company because you want to own it, not because you want the stock to go up.2


Buffett often tries to invest in companies whose shares may perform well in both up and down markets. He also has famously stated, "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes." 2


In contrast with Buffett's patient long-term approach, investors who care too much about day-to-day market behavior may practice market timing, which is as much hope as strategy.


To make market timing work, an investor has to be right twice. The goal is to sell high, take profits, and buy back in just as the market begins to rally off a bottom. But there is volatility in financial markets and the sale at any point could result in a gain or loss.

Even Wall Street professionals have a hard time predicting market tops and bottoms. Retail investors are notorious for buying high and selling low.


Investors who alter their strategy in response to the headlines may end up changing it again after further headlines. While they may expect to be on top of things by doing this, their returns may suffer from their emotional and impatient responses.


Nobel Laureate economist Gene Fama once commented: "Your money is like soap. The more you handle it, the less you'll have." Wisdom that may benefit your strategy, especially during periods of market volatililty.3


C. Brian McKee may be reached at 812-477-8522 or


Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.


This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.


Registered Representative, Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC.   Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.  Cambridge and McKee Financial Resources Inc. are not affiliated.



1 - [7/26/19]

2 - [8/30/19]

3 - [12/5/18]


Interesting Economic Facts


BAD DAY, BAD YEAR - The worst year for the taxable bond market in the last 40 years (1980-2019) was a loss of 2.92% (total return).  The stock market, using the S&P 500 as a measurement, has had 22 individual trading days in just the last ten years that resulted in a loss of at least 2.92%(total return).  The Bloomberg Barclays U.S. Aggregate Bond Index (created in 1986), calculated using publicly traded investment grade government bonds, corporate bonds, and mortgage-related bonds with at least one year until final maturity, was used as the bond measurement(source: Bloomberg Barclays). 


RED FEBRUARY -The last time that February did not produce the largest monthly deficit during a fiscal year was in fiscal year 2002 or 18 years ago(source: Treasury Department).


START RIGHT AWAY - A child born in February 1998 (22 years ago) who started college in the fall of 2016is scheduled to graduate from an average 4-year public in-state college in May 2020.  If the child's parents had invested $143 per month beginning at the child's 1998 birth and had earned an annualized +8%on all invested dollars, the parents would have been able to pay for their child's 4-year college expenses of tuition, fees, room and board (the 4-year cost was $84,290).*  This calculation ignores the ultimate impact of taxes on the investment account, which are due upon withdrawal, is for illustrative purposes only, and is not intended to reflect any specific investment or performance.  Actual results will fluctuate with market conditions and will vary (source: College Board).  


TOP SHELF -To rank in the top 0.1% of U.S. taxpayers in tax year 2017, i.e., the top 1 out of 1,000 taxpayers, required an adjusted gross income of $2,374,937(source: Internal Revenue Service).  


WHO LOVES A BULL MARKET? -The wealthiest 1%of American households owned 56%of the entire value of all U.S. equities as of September 2019 (source: Goldman Sachs).


SMALLER HOUSEHOLD SIZE - There were 2.52 people on average living in every American household in 2019, the lowest average household size in U.S. history.  There were 3.33 people on average per household in 1960 (source: Census Bureau).


...and for the History Lovers... This Week in History


February 24, 1916

General Norman Schwarzkopf, commander of the coalition army, sends in ground forces during the Gulf War.


February 25, 1836

Samuel Colt patents the first revolving cylinder multi-shot firearm.


February 26, 1914

Russian aviator Igor Sikorsky carries 17 passengers in a twin-engine plane in St. Petersburg.


February 27, 1827

The first Mardi-Gras celebration is held in New Orleans.


February 28, 1066

Westminster Abbey, the most famous church in England, opens its doors.


February 29, 1972

Henry "Hank" Aaron becomes the first baseball player to sign a baseball contract for $200,000 a year.


March 1, 1780  
Pennsylvania becomes the first U.S. state to abolish slavery.



Sidebar about this week in history.  Igor Sikorsky made history in 1914 for carrying 17 passengers in his twin-engine plane.  Sikorsky Aircraft is still making history but in the rotary-wing these days.  They recently developed the CH53K to the United States Marine Corps. It's the largest helicopter in the U.S. Military and can transport up to 55 troops.    


Source:  website:  



McKee Financial Resources Inc.

Ph 812-477-8522 / Fx 812-477-8521



Evansville Office:

McKee Financial Resources Inc.

727 N. Cross Pointe Blvd.

Suite C

Evansville, IN 47715


Bloomington Office:

McKee Financial Resources Inc.

Graham Plaza, Suite 014

205 N. College Ave

Bloomington, IN 47401


Indianapolis Office:

McKee Financial Resources Inc.

48 N. Emerson Avenue

Suite 300

Greenwood, IN 46143


Securities offered through Registered Representatives of Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory Services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. McKee Financial Resources Inc. and Cambridge are not affiliated.


The information in this Email is confidential, and is intended solely for the addressee.  If you are not the intended addressee and have received this Email in error, please reply to the sender to inform them of this fact.


We cannot accept trade offers through Email.  Important letters, Email, or FAX messages should be confirmed by calling 812-477-8522.  This Email service may not be monitored every day, or after normal business hours.  Thank you.

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck