There are two forces investors need to understand when determining the path of stock prices. The first is the Fed and the second is corporate earnings. >> To subscribe to this monthly newsletter, click on Subscribe! Earnings, Interest Rates, and Stock Prices Stock prices are a function, among other items, of their estimated future earnings discounted…
December 2022 was a bad month for stocks and bonds. The S&P500 fell 5.9% for the month. As measured by the intermediate corporate ETF, LQD, bonds were down 2.2%. A combination of uncertainty over rates and recession as well as a particularly aggressive tax-loss harvesting season hurt securities. >> To subscribe to this monthly newsletter, click…
The bear market is still alive and well, and full of surprises. I read a Tweet posted by long-time technical analyst Walter Deemer that said, “In a bear market, the surprises tend to be negative.” >> To subscribe to this monthly newsletter, click on Subscribe! Stronger Consumer Price Index & Wild Dow Jones Swings This was…
As a serious investor, you regularly weigh risk and return as you consider what to invest in, what to divest, and how to react to market news and attempts to manage economic forces. In this article, you’ll get a taste of the market’s response to pain, higher short-term interest rates, and falling bond prices. >>…
In the past week or so, the markets, I suggest, have begun to question the prevailing conventional wisdom that inflation will remain persistently high and that the economy is likely to fall into a deep recession. This article explores why. >> To subscribe to this monthly newsletter, click on Subscribe! Commodity Prices & Payroll Suggest Moderating…
Regardless of the market situation, are you always looking for investing opportunities? As you’ll read further below, you don’t want to be 100% in cash. >> To subscribe to this monthly newsletter, click on Subscribe! Don’t Let Current Events Scare You From Looking for Investing Opportunities Inflation and rising interest rates are still dominating the investment…
War in Ukraine, sanctions, and more supply chain disruptions while the Fed works to transition from massive COVID accommodation to normalization are more than enough to spook investors. This article puts into perspective how global conflict affects stock prices, and offers guidance on how best to ride out the turmoil. >> To subscribe to this…
Inflation is in the news, as are rising interest rates. Can stock prices hold up against this backdrop of rising interest rates? Read on to learn more. >> To subscribe to this monthly newsletter, click on Subscribe! Inflation Report Sends Interest Rates Up This week the markets got another hot inflation report. This sent interest rates…
This first newsletter of 2022 not only addresses four financial themes to watch in 2022 (including one about dogs of the market) but also explores COVID and inflationary pressures while reminding you of three determinants of stock prices. >> To subscribe to this monthly newsletter, click on Subscribe! COVID and Inflationary Pressures Unfortunately, COVID is still…
Do you find yourself unable to invest because you can’t decide on the right time? Do you feel paralyzed by the exuberant ups of your market watch list and in despair over the unexpected lows? Stop Trying to Time the Market! Just Invest. Invest regularly and consistently, without emotion, based on analysis, and in accordance…
