Financial Market Updates

This week, the stock market began its inevitable sell-off that analysts (and us) have been calling for over the last several months. Jon (and futures) predicts that the stock market has further to slide. After all, a technical analysis view of the overall S&P ETF SPY shows that we are in a downward spiral. RSI is showing a sell-off, MACD keeps diverging (crossing means a change of direction), and it has hit the lower Bollinger Band without showing an upward trend. Just look at the graph below and see for yourself:

spy futures technical analysis 1-26-14

Jon has also been speculating on earnings calls (wait, what? That word has no right being on a personal finance blog) over the past week. I’m sure he’ll get to a post soon, but his personal earnings were substantial (along with the companies he bet on).

The January effect theory has been debunked this time around. Generally investors sell-off in December to capture capital losses and then buy back in January. Unfortunately, we’ve seen a sell-off of over 3% this month. So much for that.

Personal Finance Updates

For someone who has lost count (greater than 12?) of the number of credit cards he owns, it was about time I wrote a post on how to choose the right rewards credit card based on annual fees. It’s very simple. If you spend enough money each year on a credit card that the rewards you earn from the card cancel out the annual fee, go with that card.

Links from the Rest of the World:

We love reading personal finance advice, so here’s some interesting stuff we found…

Having started by home-buying process this week, I have been obsessed with reading real-estate investing articles. The realtor was telling me yesterday you also always have to focus on the resale value an appeal (despite the fact that I plan to hold indefinitely as a rental property), I thought that an article on understanding the seller’s perspective is always a useful read, especially for buyers.

Ever wonder why your CEO seems to love himself so much? You’re not alone. The human race loves narcissists.

We’ve told you what your net worth should be at various ages, but now there’s a calculator for that.

It’s apparent that we’ve reached the cliff of the bubble, but let’s just check using the Monty Python test.

Wonder what almost-millionaires are investing in? Fidelity found out for you.