Posts Tagged
‘investment planning’

Almost No Place To Hide There was little opportunity for profit in traditional asset categories in this year’s first quarter.  The S&P 500, against which most equity returns are measured, rallied nicely in late-March but finished down for the quarter by 4.6%.  The Nasdaq Composite, which includes most of the mega-tech companies that have led [...]

Because I’m writing for a newly expanded readership, many of whom have never before seen our commentaries, I’m going to take a somewhat different approach in this issue. It is always advantageous to know the biases of a writer and, ideally, to know what he/she has identified previously as the factors likely to influence markets [...]

If we’re unconcerned about the price we pay, there are several reasons to buy stocks today. Thanks to copious stimulus from the Federal Reserve, common stock indexes have continued their march upward, and most securities analysts are forecasting further gains. Notwithstanding the Fed’s generosity, however, U.S. Treasury notes and bonds and investment-grade corporates  lost money [...]

Readers of our reports over the past few years know that we have described the condition facing investors as a bet. Older market veterans who have lived through a number of market cycles would tend to bet on what has always ultimately played out-- that the equity markets would eventually revert to their historically normal [...]

In my 52 years in the investment industry, I have never seen anything like the stock market activity of the last month. From its Feb 12 all-time high, the Dow Jones Industrial Average declined by more than 35% (about 10,500 points) to its Wednesday low, just below 19,000. That significant decline was the fastest in [...]

On Sunday evening of this week, the markets experienced a brief dip into negative yields for the 3-month US Treasury bill. Once again on Wednesday, bills with maturities from four weeks to three months were slightly negative. In other words, investors were willing to pay the US Treasury to hold their money for the next [...]

As we head into the decade of the twenties, welcome to the casino! You can double your money on red or black, or you can lose it all. Never in the lifetimes of people living today have speculators faced the alternative of investments so ripe with positive potential while simultaneously saturated with the risk of [...]

Over the past year, the major factors affecting stock market movement—expectations of Federal Reserve policy and administration comments about the China trade dispute—have remained largely the same. What has changed is that market reactions are unfolding in an increasingly compressed time frame. At the long end of a three-year process of Fed interest rate “normalization”, [...]

“Is the market going up just because of the Fed?” – asked of an investment strategist by a CNBC announcer. “No, the economy is incredibly strong.” This interchange took place immediately following the strategist’s prediction that the Fed will lower short-term interest rates in July by 25 basis points, possibly by 50. Even if illogical, [...]

For the past several years, we have been profiling the dilemma facing investors as a “bet” between: 1) Reliance on traditional investment fundamentals reverting to their long-term means, which has always ultimately proven successful; or 2) Reliance on central bankers continuing to prevent securities prices from a reversion to historic fundamental averages, the approach that [...]