Stock prices may be right after Chinese selloff
It’s been awhile since the stock market went on sale, but investors once again have a choice to make.
Higher prices are clear to see, but equities shrug off inflation concerns
Defining inflation is easy enough: It’s what happens when things become more expensive than they used to be. Measuring inflation and its effect on financial markets is not as straightforward.
Low yields justify portfolio allocation tweaks
Traditional asset allocation models suggest that as investors get older (and wealthier), it’s appropriate for their investment portfolios to become less risky. That usually means more money in conservative assets such as bonds and cash. But in this new economic reality where bond yields are low, cash yields are gone and inflation is accelerating, maybe what portfolios need is less historical modeling and more common sense.
Investors take note: Big crypto questions remain unanswered
Billionaire entrepreneur and Tesla founder Elon Musk went out of his way to mention his favorite cryptocurrency multiple times when hosting “Saturday Night Live” recently. This publicity stunt perfectly captured the current debate: Are cryptocurrencies worthy of prime-time attention? Or destined to be just another punchline?
Investors shouldn’t mistake the market for the economy
For the first time in a long time, optimism is everywhere, and it’s easy to understand why.
Picking a stock benchmark that works for you
Pick a benchmark, any benchmark, for U.S. stocks. Now explain why you chose that one, how it’s built, and why it accurately reflects the market. That suggestion is straightforward enough. The answers? Not nearly as simple.
It’s easy to forget given other noise, but earnings still matter
These days in financial news, politics grab all the headlines, the Fed gets all the credit and coronavirus takes all the blame. With those three subjects dominating the media, nobody seems to have much interest in earnings.
Political theater obscures bigger financial risks
The thing about historic news events is that they grab all the attention for themselves. Rioters storming the U.S. Capitol and a twice-impeached president have understandably been the focus of media — and our country — in the days since.
Extraordinary year offers familiar lessons for investors
No matter how much a global pandemic has changed our lives, some things remain the same.
Resist over-indulging on the hot stock flavor of the moment
With the presidential election now behind us, investors need a new uncertainty to ponder. Fortunately, the markets are seldom short on subject matter.