Economy and Markets
Is The Bond Market Predicting A Recession?
There was a lot of hype this week in the media regarding the “inversion of the yield curve”. A lot of attention is awarded to this technical indicator because typically when the slope of the curve “inverts” history suggests that this event is frequently followed by...
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Will There Be A Santa Claus Rally This Year?
Going back 120 years, December has traditionally been a very good month for the stock market. Within the last 120 years the S&P 500 has been positive in December 73% of the time. The Russell 2000, which is the index for small cap stocks, has been up 87% of the...
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The Stock Market Dropped 800 Points Today. Is This A Warning Sign?
There was a large sell off in the stock market today. The Dow, S&P 500, and Nasdaq all dropped by over 3% in today’s trading session. After a long bull rally, big drops in the stock market often lead investors to the question: “Is this big drop in the market...
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How Could The Midterm Elections Impact The Stock Market?
The most common question that I have been asked over the past few weeks is: “If the Republicans lose control of either the House or the Senate in November, what impact do you think that will have on the markets?” How much the stock market may go up or down in the...
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Patience Should Reward Investors In 2018
Bottom line, the first half of 2018 was a tough pill to swallow for investors. Volatility was high, returns were low, and the news was dominated with fears of trade wars. This environment has left investors questioning if we are on the eve of the next recession. ...
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We Are Sleep Walking Into The Next Crisis
The U.S. economy is headed down a dangerous path. In our opinion it has nothing to do with the length of the current economic cycle, valuations, interest rates, or trade wars. Instead, it has everything to do with our mounting government deficits. We have been...
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Does “Sell In May And Go Away” Really Work?
There is a well-known trading strategy that goes by the name of “Sell In May And Go Away”. The strategy involves liquidating all of your stock holdings in May and then re-establishing your stock positions in November. The basic premise of this strategy is when...
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Don’t Let Taxes Dictate Your Investment Decisions
Everyone hates to pay more in taxes. So much so that it can often lead investors to make foolish investment decisions. The stock market bottomed in March 2009 and since then we have experienced the second longest bull market rally of all time. This type of market...
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Are The New Trade Tariffs Good Or Bad For The Stock Market?
President Trump announced on March 8, 2018 that the United States will begin imposing a tariff on steel and aluminum imported into the U.S. from countries other than Mexico and Canada. The tariff on steel will be 25% and 10% on aluminum. There are two main...
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What Happened The Last Time The Dow Dropped By More Than 4% In A Day?
Yesterday was an “ouch”. The Dow Jones Industrial average dropped by more than 1000 points resulting in a 4.60% drop in the value of the index. While yesterday marked the largest “point” decline in the history of the Dow Jones Index, it was not anywhere near the...
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