Last month I presented at Pinterest’s Annual Women Inspire conference in Chicago. I’m excited to say I’ll be paying a visit to their headquarters in San Francisco this month to share even more financial education with the women on the West Coast. One cool thing about Pinterest is that they went public earlier this year. As I thought about what to say in my presentation, I realized that we’d encountered a lot of recent IPO activity.
As of September 27th, 2019, 114 companies have gone public, including Uber, Beyond Meat, Peleton, and Slack, to name a few. This is nearly double the number of companies that went public in 2009.
On the one hand, it’s been really great working with our clients as their companies go public, but I’m also starting to become a bit concerned about what this means in the greater scheme of our economy. A peak in IPOs can be viewed as a leading economic indicator, which could mean that our tides might be turning. For example, in 2007, we saw 213 IPOs, followed by a drop to only 31 in 2008. We’ve had a good run in the economy for the last ten years, so is it possible that we’re reaching a peak? Or will the good times roll?
The tricky thing about the stock market is that hindsight is 20/20. Things won’t be clear until we’ve lived through it, and the decisions you make today will impact your financial future. So if you aren’t prepared, I recommend creating your plan NOW.
Everyone’s plan is different, but there is one fundamental question that I urge you to ask yourself this month:
Do you have all of your eggs in one basket? (ie. Do you have a large concentration of your net worth in one company?)
Maybe you have a large stock purchase plan or received equity when you were hired? Or have you received an inheritance, but haven’t had the heart to diversify your shares? Whether the company is a startup that went public this year or is an established brand, it’s important to assess your exposure.
There’s no better time than the present to take control of your finances. Are you confident in your plan? CLICK HERE to see if we can help.
The views expressed today are my own and do not necessarily represent the views of my broker/dealer, The Investment Center, Inc. or my Registered Investment Advisor, IC Advisory Services, Inc.
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