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Understanding the Fed’s Rate Hikes and the Market
(Main Content/blog)
... interest-rate increases as a result. Two positive inflation readings in a row would make that scenario a lot more likely. That's not what happened, unfortunately: The Sept. 13 inflation report showed ...
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Better Inflation News Spells Opportunity
(Main Content/blog)
... rate of price increases is still high, it looks like it might have peaked in June. The stock market rallied more than 4% over the subsequent week before giving back some of its gains. The takeaway here ...
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Is the Next Stock Market Catalyst Taking Shape?
(Main Content/blog)
... in the price of goods and services. And though it’s far from scientific, I noticed a sharp difference between my past two grocery bills. What’s causing the decline in commodity prices? Most likely it reflects ...
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When Will Stocks Get Back in the Black?
(Main Content/blog)
... has fallen 30%. When will it end? Markets don't break out of their funk for no reason. They need a catalyst—like strong corporate earnings, or interest-rate cuts, or, to cite a recent example, the approval ...
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For Investors, the Shoe Has Dropped
(Main Content/blog)
The stock market has looked at higher inflation and rising interest rates, and to say that it doesn't like what it sees would be an understatement. Since the beginning of the year, the S&P 500 index ...
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What the Crashes of Netflix and Facebook Tell Us
(Main Content/blog)
... forces are slowing the economy and punishing stocks of companies that don't deliver near-term earnings growth. In some cases, like Meta's, a growth stock may be beat up so badly that it becomes a buy. ...
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Market Turmoil Brings Buying Opportunities
(Main Content/blog)
... of the tech-stock selloff is behind us. The Federal Reserve this month announced its first interest-rate increase since 2018, and signaled that six more rate hikes are likely in store for this year. That's ...
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A Bad Time to Be Over-Diversified
(Main Content/blog)
... return right now. On the other hand, if you invested in an index fund whose holdings included Apple, you'd likely have a far smaller return. That's an over-simplified example, but you get the point. ...
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A Big Market Shift is Underway
(Main Content/blog)
... the cost of borrowing. Thus, the long-term earnings potential of companies like Tesla or Peloton become less appealing when interest rates climb. The tech-heavy NASDAQ index is down 7% since early November, ...
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Why I Don't Invest in Crypto
(Main Content/blog)
... the value of U.S dollars in circulation. Lots of investors have jumped on the crypto bandwagon, including celebrity billionaires like Elon Musk. I'm steering clear. In the short term, Bitcoin and other ...
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Higher Interest Rates Could Hammer Stocks
(Main Content/blog)
... Should that pattern continue, it would likely prompt the Federal Reserve to raise short-term interest rates. Tightening the money supply—or in plain English, making money more expensive—could cool the ...
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Time to Make a Shopping List
(Main Content/blog)
... made its reversals look like small road bumps. It's human nature to get lost in short term trading. But it's long-term investing that can really make you wealthy. If you invested $100,000 in 1999 in ...
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How to Handle the Market’s Volatility
(Main Content/main)
If it seems like the stock market has been more volatile than usual lately, it's not your imagination. On September 9, the S&P 500 closed at 4,459, down 1.7% from the day before. Four days later ...
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How to Handle the Market’s Volatility
(Main Content/blog)
If it seems like the stock market has been more volatile than usual lately, it's not your imagination. On September 9, the S&P 500 closed at 4,459, down 1.7% from the day before. Four days later ...
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Where to Invest Now? It's Tricky
(Main Content/blog)
... dividend stocks pay you to wait. In looking for sectors that I consider most likely to see price appreciation, oil companies stand out, as do banks. Rising oil prices--oil has jumped from $40 a barrel ...
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Will Biden Double the Capital Gains Rate?
(Main Content/blog)
... earnings would continue to apply, pushing the top rate to 43.4%. Here's why I don't think this scenario will become reality. First of all, Democratic and Republican lawmakers alike have wealthy constituents ...
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When Will Stocks Rise Again?
(Main Content/blog)
Remember when the stock market seemed like it would go up forever? Between March 20 of last year and May 7 of this year, the S&P 500 index gained 84%, driven by factors like government stimulus spending, ...
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How to Invest for Inflation
(Main Content/blog)
... companies’ costs—everything from wages to materials to borrowing costs. That puts pressure on earnings growth—and fast earnings growth is a core attraction of companies like Netflix, Amazon and Facebook. ...
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Rising Inflation and Interest Rates: What to Do
(Main Content/blog)
... sharp pullbacks, possibly as much as 10% to 20%. If you own some of the hotter stocks from the past year or so, their price appreciation means they now likely account for a larger percentage of your portfolio ...
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The Stock Market Rotation is Here
(Main Content/blog)
The technology and work-from-home stocks that have powered the market since early in the pandemic have suddenly come back down to earth. Names like Zoom, DocuSign, Amazon and Tesla have all fallen sharply ...