TGA Capital Management

TGA Capital Management A very resourceful sight for individuals needing financial guidance or assistance. 

Trading volume on the S&P 500 has dropped 60% since 2009!

 

 

In the table that I have created for you below, I list the trading volume for the S&P 500 for each June since 2009 and the percentage change in volume from the previous June.

Trading volume on the S&P 500 has dropped 60% since 2009!
Trading Volume, S&P 500, June of Each Year, 2009 – 2014

Year	Volume (Shares Traded Per Month)	Year-Over-Year % Change
June 2009	93,147,496,448
June 2010	91,971,043,328	-1.3%
June 2011	63,674,499,072	-30.8%
June 2012	59,703,365,632	-6.2%
June 2013	51,560,980,480	-13.6%
June 2014	38,765,629,440	-24.8%

Data source: www.StockCharts.com, last accessed July 1, 2014

What’s happening here? How can the stock market rise year after year if trading volume is down?

It’s very simple, but I’ll explain this new phenomenon in a moment. First, look at the chart of the S&P 500 below. Pay close attention to the volume at the bottom of the chart. As volume on the S&P 500 collapsed, the price of the index rose.

Volume is collapsing because the number of shares companies have outstanding is being reduced at an accelerated rate. For example, in the first quarter of 2014, S&P 500 companies purchased $154.5 billion worth of their shares back (stock buyback programs). Over the trailing 12 months, S&P 500 companies purchased more than half-a-trillion-dollars worth of their own shares—$535.2 billion to be exact. (Source: FactSet, June 18, 2014.)

Add to the shrinking number of shares outstanding the fact that central banks have also been buying equities (see “Guess Who Is Pushing the Stock Market Higher Now”), and the number of shares to buy (supply) has really been sucked up.

For more assistance please visit TGA Capital Management and I can be emailed at mgreen1@greenadvisory.com
 

Vanguard Retirement Plan Access - TGA Capital Management

Vanguard Retirement Plan Access - TGA Capital Management a low cost advisory providing exceptional plan services and participant guidance.

Putting your investment costs at a check.

My name is Michael Green, The Principal of TGA Capital Management, since 1982.  You can visit my website(s) for more detailed information at; www.tgacapitalmanagement.com  and am also providing you with my research link for more FYI.  It is, http://sites.google.com/site/tgagia/  designed for cost-consciences individuals like yourself and for you to utilize absolutely free.

I provide all the costs to allow free access for my clients and the public.  My sites are designed to help individuals to become more informed and educated about their financial health and to help address their financial concerns.

We are committed to providing a better alternative.

I’m sure your familiar with mutual funds, ETF’s, (Exchange traded Funds), MNLP’s, Stocks, Bonds, Alternative Investments, Fixed-Income, Precious metals, or if even if you are savvy enough doing  your own self directing investment, research and due-diligence, our advisory can assist you with your related investment costs..

However, it is likely; you pay a wire house or broker, commissions, an advisory fee, transaction fees, or other associated fees, for the assets being managed on your behalf.  Sometimes, (hidden fees), that you might not be aware of or not familiar with could exist.  Do they?

Wall Street Fights for Our Right to Pay 5% Fund Fees

Suppose you could keep your current positions in your account while paying no commissions or reduce paying advisory fees calculated on your assets that you might have under management and pay no other hidden fees or even transaction fees on your mutual fund selections.

“Under the fiduciary standard, fees should be reasonable and fair.”

In our opinion you should only be paying a fee associated with the management of that specific mutual fund, ETF, MNLP, stock, bond, or other securities offered by the issuer.  Others fees come along, since the offering is distributed by the exchanges. 

Custodial fees are separate since they provide the custodian customer account with “services.” Monthly statements, on-line account access, trading, year-end tax reporting, on line consultation, but very few provide investment advice.  Most custodians provide a valuable service but not investment advice.

Commissions and other related fees and hidden fees should and can be avoided.  Commissions are generally part of many load-type products, and are generally not associated with custodial services, but some custodial services may have a revenue sharing agreement with the issuer of a commissioned product. 

You just have to know how to distinguish the high-cost “Product,” from the low-cost solution and our due-diligence can assure you that we provide low cost managed accounts.  I can help you find them and to assure you, that you are working with a fee-only advisory.  A low-cost advisory, helping you keep more of your investment where it belongs.  In your pocket!

I would like to extend and suggest, visiting us at; www.tgacapitalmanagement.com   and for our links to assist you in this endeavor to help you to be assured that we are a low-cost, fee-only advisory. 

Our best-practice approach, tries to address most of these decision making issues that individuals can find some unbiased advice about their personal financial health. 

Our approach is designed to accommodate what you have already implemented and what you might be considering when it comes to your financial decision(s) to implement or (making the transaction). 

Without any obligation visit us at our research website at, https://sites.google.com/site/tgagia/ as a resource and reference about business or personal matters designed to help you make informed decision about your financial concerns and requirements.

Our systems are designed to look for the lowest cost Mutual Funds, ETF’s for our client account(s), while maintaining low cost fund managers and ETF’s that provide quality management. There are thousands of third party mutual funds, ETF’s and annuities offered but not all are alike as to cost and performance.

Past performance is not a guarantee to a future result.  But we are committed to help you take better control of your costs.

Partnering with our advisory will provide you with an alternative for you to become familiar with and if you choose to have us work for you, it will be at a fraction of the fees you are currently paying.  We do not accept any form of commission in any securities transaction and our advisory schedule is priced to provide you with the ongoing personal or retirement plan services you require in a transparent manner.

In some cases, we can show plan sponsors how to avoid or reduce their entire plan administration costs or have a pass-through pricing that will reduce their current plan costs and investment costs, while experiencing exceptional custodial and advisory services and is also offered to individuals.

Our account custodians are highly known, such as Charles Schwab & Co., Inc, TD, offering 24/7 online account access, direct deposit or withdrawals, educational sites, for our managed accounts, since they meet our low-cost posture.

It’s tough to imagine this effort alone transforming the wolves of Wall Street into warm and fuzzy investor advocates. But if they want to win tomorrow’s customers, they need to do more than talk. According to the consultancy Scratch, more than 70 percent of 20- and 30-somethings would rather go to the dentist than listen to a bank.  Can you blame them?

I personally welcome you to enjoy our sites as a valuable resource.  I welcome the opportunity to provide you with a side-by-side cost analysis of your current employee benefit plan or a side-by-side cost-return analysis concerning your personal investment.

With this in mind, I look forward to be a valuable cost consciences advisory resource and to support your concerns with cost-effective solutions.

I hope you’ll find our websites to be informative and always feel free to call me to assist you in any way I can or to request more information. I can also be reached at;mgreen@tgacapitalmanagement.com

Sincerely,

Michael D. Green, Principal

mgreen@tgacapitalmanagement.com

TGA Capital Management

www.tgacapitalmanagement.com

508-224-9646

Reduce your investment costs and indexing will impact your results.

The effectiveness of indexing as an investment strategy has clearly taken hold, as evidenced by the difference in cash flows between active and passive strategies( both equity and fixed income) over the past few years.

Yet misconceptions remain.

Indexing works because of the cost-matters hypothesis (Bogle, 2005), which states that "whether markets are efficient or inefficient, investors as a group must fall short of the market returns by the amount of the costs they incur."

Makes sense, after all if your in a fund that mimic's the S&P 500, yet has high cost or the fund manager lag's in returns, by not owning all of the index, will not achieve the return of that given index.

It is said, that 80.00% of fund managers do not beat their given bench mark. 

By selecting index funds, while the allocations are managed in a managed account, rather than investing through some mutual funds, you'll have a better tax sensitive result.

Let me explain, in simple terms.  Funding your investments through a managed account avoids, commissions, high cost's associated with some funds, and not having control of the capital gains, since gains are declared by the fund manager, not you, because your investing in a pool with other (mutual investors)!

A big difference than investing through a managed separate account. Aside from this, index funds, known as (ETF's) exchange traded funds, costs are very low in comparison to most opened-end mutual funds.

In the interim, let me know what you think and I'll send along some FYI, to help you become a more efficient, savvy investor.