On the fear and greed cycle. One of the most challenging times for investors is a market downturn. Whether markets are experiencing a correction or a bear market, it’s really disturbing to watch the value of your savings and investments decline. Last week, the CNN Business Fear & Greed Index showed extreme fear was the […]
Living with a bear. On the survival series “Alone,” the tension ratchets higher whenever participants encounter bears. Some participants live warily alongside bears, while others tap out. A similar thing happens among investors when they encounter a bear market. What is a bear market? People define bear markets in different ways. Some people say a […]
There is a lot of uncertainty in financial markets – and markets hate uncertainty. In recent weeks, economic and financial market data have been telling different stories – and that makes it tough for investors to know where the United States economy is headed. Since stock markets move up and down based on what investors […]
Correction and contraction.... Investing during 2022 has been like running a forest trail and having unexpected obstacles appear every so often – a fallen tree, a swarm of biting flies, a bear with cubs – you get the idea. To-date, economic, coronavirus-related, and geopolitical events have taken a toll from stock and bond markets, as […]
The Federal Reserve’s Ice Bucket Challenge… Remember a few years ago when people raised money for charity by challenging others to pour buckets of icy water over their heads? Last week, the Federal Reserve poured a bucket of ice water over the United States stock market. Randall W. Forsyth of Barron’s explained: “In the past […]
Here’s a riddle: How can inflation be 8.5 percent and 6.5 percent at the same time? The answer is that it depends on how you measure it. Determining how quickly prices are rising or falling – and where they may be headed in the future – is not simple. In the United States, millions of […]
The first quarter of 2022 was jam-packed with volatility-inducing events: rising inflation, war in Ukraine, rising interest rates, sanctions on Russia, and a new COVID-19 outbreak in China. Here’s a brief review of what happened during: Inflation continued to rise. At the start of the year, consumers and investors were primarily concerned about inflation. In […]
Checking in on the Federal Reserve. Among other things, Congress asks the Federal Reserve to use its tools to promote price stability and maximum employment. Last week, economic data provided information about both. Inflation continued to increase Price stability means ensuring the prices of goods and services increase at a slow and stable pace. Last […]
Be careful what you ask for, you just might get it. In early March, almost two-thirds of Americans who participated in a Nationwide Retirement Institute survey said the Federal Reserve (Fed) should take more aggressive action on inflation. The next week, the Federal Open Market Committee (FOMC) did just that. It increased the target range […]