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 markets have bounced following a lousy September on the heels of corporate earnings, steady employment, and an October CPI that showed inflation may be cooling. Both stocks and bonds have had big daily swings as money flows react to each piece of economic data. >> To subscribe to this monthly newsletter, click on Subscribe! Third…
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…
How does the Price-to-Earnings (P/E) ratio help you evaluate whether a company is worth becoming part of your investment portfolio? Let’s explore this in this article. >> To subscribe to this monthly newsletter, click on Subscribe! The Relationship Between a Stock’s Price and its Earnings One of the benefits of entering into a bear market territory…
How are you finding bargains and protecting your portfolio in this Bear Market? According to Investopedia, a Bear Market happens when, “… a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.” In other words, investing during a…
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…
