The market was up last week, largely based on expectations of a reduction in the Fed Funds Rate later this month. The concern now is that stocks in the S&P 500 are trading at, on average, 22 times their expected future earnings. Historically, stocks trade around 17 times that number. Which, theoretically, means stocks are overpriced. But as one analyst said, it all depends on what you think a company’s future earnings will be. Do we expect big companies, especially tech companies, to leverage artificial intelligence to continue growing? Or will the bubble burst, and stocks drop 20%? I certainly don’t have a crystal ball. And while past performance doesn’t guarantee future returns, I do believe that a diversified stock portfolio will, over time, beat inflation.
And on that subject, I recently commented on a post about the price of groceries. While the days of clipping coupons from the Sunday paper have largely passed us by, there are still savings to be had. The first line of defense with your grocery bill is planning.
When it fits into your schedule, look at the upcoming week. Inventory your pantry and freezer. Using what you already have on hand and your favorite store’s weekly sales flyer, plan your meals to fit with your upcoming week. Busy with kids’ activities on Tuesday? Maybe you plan for tacos using ground beef you cooked on Monday while you were already making dinner. Plan to cook extra of dishes that work as easy leftovers for lunch. Crock pot meals using beans and less expensive cuts of meat can save both time and money.
Once your meals are planned, make a grocery list and be sure to eat before you go to the store. Take note of produce and meats that are on sale – you may want to purchase extra to freeze.
Grocery prices, especially for brand-name non-perishable items, rise and fall over a three-month period. Invest the time to track your family’s key purchases. Then, when the price hits the three-month low, buy a three-month supply. Typically, when we would get paper coupons, they would come out the Sunday before the high point of the price cycle.
Be sure to download the app for each of your go-to grocery stores. Clip coupons in the app for items you normally buy – but watch the timing of the coupons in comparison with the price cycle of the item. Adding a coupon on top of a low price point is how you start to really save.
Your action item this week is to go through your summer clothes. Anything you didn’t really wear this past season, donate to your local thrift store. Be sure to get a receipt for your taxes if you itemize deductions.
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CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.