We Are Barely Into 2019 And The Stock Market Is Already Making Some Wild Moves

2018 ended with significant stock market turbulence around the world, especially in New York and Asia. Tembo made note of this in its final 2018 blogs and newsletter (you can sign up here). As we mentioned, significant drops in the DOW were reversed by announcements that major pension funds were pouring over $64 billion into stock buys, moving away from their positions on low yield bonds. 

Canadian Stockmarket Turbulence

Apple CEO Tim Cook’s Investor Letters Causes Stock Market Jitters

Even as this news drove up confidence, the market tumbled again when Apple Co. CEO Tim Cook released a brisk letter to shareholders that stunned Wall Street and which the media called a ‘bombshell.’ The letter outlined many positive overall trends for the firm but admitted its revenues and profits were to be negatively affected by ongoing economic disruption. Sales of new Iphone devices, especially in Greater China, did not meet expectations, and gross revenue would be over 5% lower than forecast.
Tim Cook Investor Letter
Apple’s reputation as a practically indestructible giant with an unrivalled brand and relentlessly improving financial performance was hurt badly by the letter. The company’s share price fell by 10%, equivalent to over $70 billion. As so many market participants, analysts, and traders have never experienced a bear market from a low interest rate boom that has lasted a decade, the tough news was not taken well. Markets negatively reacted to the news, with the letter solidifying growing perceptions that the global economy is undergoing significant structural changes.

Fed Tries To Calm Markets

This week some good data restored confidence. Another big boost to the markets came from Federal Reserve Chairman Jerome Powell, who commented that his central bank’s policy was ‘flexible’, essentially calming the market by saying the Fed would act if further market drops occurred. It’s Tembo’s belief that the Fed will cut rates quickly and print money to buy stocks if the stock or asset (real estate) market’s fell harshly – for better, or for worse. 
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Your smartphone is now your financial advisor? Applications that will set you on the path to financial success.

If you’re anything like us – you’re always glued to your smartphone device. With every application you can imagine, our smartphones have quickly become our navigational system, entertainment system – and our financial advisor? That’s right – there are a ton of very useful (and easy to use) apps out there that will not only help you track your money, but manage it as well. Here are a few of our favourites at Tembo Financial:

Mint

Mint is a free app compatible with both IOS and Androids and allows you to track your finances, let’s you know if you’re about to go over budget, as well as categorize the types of spending you do. We love this app specifically for the later feature. Four dollars a day on a cup of coffee doesn’t seem so bad – but trust us, it ads up quite a bit. Tracking where your money is going to specifically can help you make much smarter financial decisions.

LearnVests

Although this app is unfortunately only available on IOS – it has its major pros (sorry Android users). Similar to Mint, LearnVests helps you track your spending and budget. But what makes LearnVest Different is its focus on financial literacy. LearnVest’s roots are in financial literacy and education, so it offers plenty of reading material in both the app and website, based on topics you select as important to you. We think this is a great feature for anyone who is still new to the world of bills, rents and debt. Understand how to spend wisely, and save will greatly benefit you down the line.

Budget Boss

This super easy app is an amazing way to evaluate the effectiveness of your budget. Creating a budget is one thing, but is it smart? Budget Boss analyzes the budget you’ve created and makes recommendations and estimations based on those numbers. Thinking 5… Even 10 years down the line is a bit of a daunting task. Budget Boss helps you create the smartest budget for your financial future.

Although these are only three out of many financial applications available, we truly believe that investing a little time tracking your spending, and creating a budget that works for you, will set you on the path to financial success.