Following the steep market selloff last year, market pundits caused hysteria by prematurely declaring the beginning of a bear market. How does that impact the market and what can investors learn from the market and the media? The steep stock market selloff at the end of 2018 was a stark reminder to investors that what …
What Can We Learn from the “Almost” Bear Market of 2018? Read More »
Can investors have too much information? Leading market experts warn that quarterly forecasts are not very useful to investors and they often lead to an unhealthy focus on short-term profits at the expense of a long-term growth strategy. Several respected authorities, including Berkshire Hathaway CEO, Warren Buffett, and JP Morgan CEO, Jamie Dimon, have lamented …
Should Companies Abandon Quarterly Earnings Reports? Read More »
I recently read that “house flipping” has reached a ten-year high, which caused me to reflect back on the financial devastation left in the wake of the Housing Bubble and Great Recession from a decade ago. Apparently, some would be investors have already forgotten one of the most important lessons from that difficult economic experience: …
In February 2019, the S&P 500 hit a new high, less than two months after one of the worst one-month declines on record. From its December 24, 2018 low, the S&P 500 has gained nearly 20%, brushing off the panic-selling triggered earlier in the month by continued Fed tightening and increasing trade tensions. The latest …
Is the Tide Finally Turning in the Active vs. Passive Debate? Read More »
A recent headline and story on CNBC caught my eye: “A risky natural gas bet gone awry least to weepy YouTube confessional video.” Apparently, money manager James Cordier had piled into a risky position in natural gas derivatives without hedging to prevent steep losses. Betting that natural gas prices would decline, Cordier was caught …
Last year should serve as a stark reminder to investors of the havoc extreme volatility can wreak on a portfolio while illuminating the increasing challenge of achieving true diversification. Passive investors especially have been caught off guard, thinking their “diversified” index funds would protect them from the volatility of the market. While some active managers …
Is Now the Right Time to be Investing in Individual Stocks? Read More »