Disinflation was in the air! To the great relief of the Federal Reserve, the American economy has been experiencing “disinflation,” which is a slowdown in the rate of inflation. For example, last week we learned that: Inflation fell to a two-year low in June. The Consumer Price Index (CPI) showed that prices rose just 3 […]
Markets are playing Federal Reserve (Fed) Clue. Last week, investors parsed the monthly Employment Situation Summary from the Bureau of Labor Statistics for clues about whether the Fed will raise the federal funds rate at its next meeting or leave the rate unchanged, reported Megan Leonhardt of Barron’s. The Fed has been aggressively raising the […]
Showing remarkable resilience. Throughout the first half of 2023, the U.S. economy and financial markets proved to be resilient – and so did investors. U.S. stock markets moved higher amid enthusiasm for artificial intelligence and expectations that the Federal Reserve’s tightening cycle might be near an end. The Standard & Poor’s 500 Index entered a […]
The Artificial Intelligence (AI) Express is traveling fast. Investors are enthusiastic about AI. Late last year, an AI research lab introduced a chatbot that could answer questions – and people were enthralled. Within two months of its introduction, more than 100 million people had engaged with the technology, reported David Curry of Business of Apps. […]
Rebalancing ahead! There is one decision all investors should make: how to allocate the money they’re investing. Asset allocation decisions are usually based on a myriad of factors: expected returns, potential volatility, and appetite for risk, among others. Periodically rebalancing a portfolio’s allocation is a critical step, too, because it keeps portfolios from having too […]
Leaping over the wall of worry. The “wall of worry” is an obstacle – or set of obstacles – that investors face. This year, the wall reached a considerable height as inflation, the War in Ukraine, United States-China tensions, slower earnings growth, the high cost of residential real estate, low demand for commercial real estate, […]
As Gomer Pyle used to say, “Surprise, surprise, surprise!” Gomer Pyle USMC was a popular American sitcom in the 1960s. It focused on a naïve, do-gooding auto mechanic from Mayberry RFD who joined the military. Gomer Pyle, the much-loved main character, was known for catchphrases such as shazam, golly, and surprise, surprise, surprise. Surprise. Last […]
It’s a three-ring circus! For centuries people have embraced the circus. Enjoying the sticky fluff of cotton candy while elephants, clowns and trapeze artists perform in the spotlights. Merriam Webster Dictionary defines the experience as wild, confusing, engrossing, and entertaining. Some aspects of that description apply to recent financial market activity. Last week, we saw: […]
Investors aren’t happy, but stocks are up. If you ever participated in a fantasy football league, you may have experienced a run on a position during your draft. One person picks a kicker or a defensive end mid-round and, suddenly, almost everyone rushes to follow suit. A similar occurrence may be happening in the United […]