On the August 1st post “Close to Prior Peaks and Resistance Levels”, I indicated that equity markets could struggle to go higher after a strong up move from October of last year and getting close to previous highs. I stated that if markets sold off from there, the 50-week moving average could be an area […]
Equity Trading Range Recap Read More »
Equity and bond markets sold off since August. You’re not surprised are you? You anticipated this could happen, didn’t you? Volatility in equity, bond, commodity, currency and other markets should be expected. This is especially the case in publicly-traded markets when millions of people and trillions of dollars can move in and out of the
Market Volatility: You’re Not Surprised Are You? Read More »
Well, it didn’t take long for the equity markets to find a reason to decline from higher levels. As indicated in my posts on August 1st and July 31st, U.S. equity markets were close to resistance and peak levels, and that investors just needed some sort of shock for the equity markets to sell off
U.S. Debt Rating Downgrade: It’s All Relative Read More »
We’re pretty close to prior market peaks and resistance levels in the Dow, S&P 500 and NASDAQ indices. This may be an area where the U.S. large cap indices take a breather following huge rallies from the lows last year. From a technical perspective, we need sustained price movement above these peaks in order to
Close to Prior Peaks and Resistance Levels Read More »
The U.S. economy is very dynamic, with various factors driving supply and demand (see our Economics 101 course). In my opinion, the U.S. economy is like a very large ship, making it tough to change directions, even if various factors can impact it. If the economy is on a positive trajectory, it’s tough to reverse
U.S. Economic Growth: Slow and Steady Read More »
Equity markets have rallied to end June, which is also the end of the second quarter, a time when client statements are calculated. Consider FOMO “fear of missing out” and “window dressing” as driving the markets higher into the end of the month/quarter. Fear Of Missing Out (FOMO) Remember, investors, whether less experienced or very
FOMO and Window Dressing Read More »
Over the last week, I keep seeing/hearing that this is the most hated stock market rally ever. Give me a break. The people that think this is the most hated rally are those that have continued to indicate the market will decline to last year’s market lows, or that have missed a lot of the
The Most Hated Rally? Oh C’mon! Read More »
There is always something that investors are concerned about. Now it’s the debt ceiling and the U.S. government’s willingness to pay its bills. This show has happened before and we have not formally defaulted on any of our debt in the past and I doubt we will this time around. Anything is possible, but even
Ok, Now the Debt Ceiling Read More »
Two weeks ago, everything “seemed” fine. Markets were still focusing on higher inflation numbers in January, and were pricing in a Federal Reserve fed funds rate hike of up to 50 bps (0.50%) at the next Fed meeting. Now the narrative has quickly changed (“Look – A Squirrel!”). Fast forward to today, two regional banks
Hey, Look Over Here! (Recent Bank Failures) Read More »
Whenever I talk about technicals, particularly moving averages, I often use the term “squiggly lines”. Moving averages are literally lines on a chart that are automatically drawn/calculated, taking the average price of an investment over a specific time period. At a high level, these moving averages are often discussed at 50-day, 100-day and 200-day intervals.
Those Squiggly Lines (Technicals) Again Read More »
I recently saw an e-mail from a random firm that essentially stated that the markets were going to crash and to “click here” for the one investment that you need to protect from this big crash. Please do not fall for this garbage. Anyone can send and e-mail, be on TV, the radio, in a
Don’t Believe the Hype Read More »
You don’t have to do it. You do not have to be tactical in your investment strategy. You do not need to try to outperform the market. You do not need to figure out which investment does better than another one. That is all a fallacy. The goal of investing should be to try to
Activity for Activity Sake Read More »
It’s that time of the year and Wall Street strategists offer their 2023 outlook for the S&P 500 Index year end target. It’s that time of the year when smart people, discuss with other smart people, look at a lot of data and come up with a guess. Yes, a guess. Let’s keep this post
Wall Street Strategists’ 2023 Outlook (Guess) Read More »
With a new year brings higher contribution limits and income adjustments across a number of advantaged investment accounts, including retirement plans (401ks, etc.), IRAs, HSAs and 529 plans. Make sure you check to see how you can take advantage of the new updates on these great saving and investing vehicles! Quick Links 401k and IRA
New Year = Higher Savings Contribution Limits Read More »
I’m part of a group that tries to make financial advisors better by sharing insights with each other. The topic came up in regards to how other advisors view international equity exposure. Some advisors had a heavier international allocation, others had very little, and one advisor claimed that international investing was a “scam”. PSA: Off
International Investment Exposure – Is It Worth It? Read More »
Private funds are generally a pooling of investors’ assets into a fund that an investment manager takes to invest in different asset classes. These private funds often invest in illiquid investments, including real estate, non-publicly traded companies or special debt/bond agreements. Historically, these private funds were only available for higher net worth individuals that met
The Illiquidity of Private Funds Read More »
Inflation is on the minds of everyone with headlines focused on the year-over-year number. CPI (Consumer Price Index) was 7.7% higher in October year-over-year, which sounds like a high number (it is), but investors may want to focus on the month-over-month number, which was 0.4%. If you annualize that number, you get 4.8%, a much
Pay Attention to Month-to-Month Inflation Read More »
I recently had a call with a representative from an investment strategy that focuses on investing in mining companies equities. This fund manages almost $2 billion in assets. I’ve covered precious metals and precious metals equity funds for a while. Investing in gold never made sense to me. Based on my experience, I’ve come to
Gold Prices – Reasons Change Read More »
Setting correct expectations is key when investing and when working with a financial advisor. In a business of helping clients achieve their financial goals, there can be decisions by clients whether to continue working with a financial advisor or to find a different financial advisor to work with. In this recent insight, I want to
Managing Expectations is Key: Financial Advisors Read More »
Just a quick part 2 to the previous post about how the market could rally, now significantly decline. Remember, markets don’t always move based on long-term fundamentals. Sometimes it’s just based on news events or market technicals. The 3% sell off in the U.S. equity markets may have been driven by both. The Federal Reserve
Huh? How Can the Equity Market Sell Off?!? Read More »
