Posts Tagged
‘stocks’

I don’t always agree with what is written on The Wall Street Journal’s editorial pages, but the following was part of a particularly insightful editorial from its year-end edition: "[F]ree money can’t last forever… is the reality that financial markets brought home in 2022 as U.S. stocks finally fell back to earth after being inflated [...]
The Future Is Now Virtually all investors have suffered so far in 2022.  As the table shows, the traditional 60/40 stock/bond portfolio lost more than 20% of its value.  Even far less aggressive portfolio allocations experienced significant declines.  And most investors did even worse, because the most popular stocks substantially underperformed the major market indexes. [...]
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 [...]
Investors continue to face a serious quandary: How to proceed with historically overvalued equity markets, worldwide economic malaise, minimal interest rates and a Fed seemingly committed to eliminating any danger of significant loss to either stocks or bonds? Throw in a highly acrimonious political scene with questions on both left and right about whether the [...]
For several years, investors have wrestled with a profound dilemma. With Federal Reserve and other substantial government stimulus, stock prices have risen to and remained at valuation levels that have, throughout history, ultimately been severely punished. As the years rolled on and the Fed consistently provided one sort of stimulus or another whenever stocks appeared [...]
Late in the second quarter, I wrote To Be Equity-Lite or Equity-Heavy?, which spelled out the predominant arguments for and against significant equity ownership in the current environment. I encourage you to read or reread that article to evaluate your own reasons for remaining either equity-lite or equity-heavy. Departing from our typical Quarterly Commentary format, [...]