The Art & Science Of Investing

In last week’s update I mentioned that within our own shop we often have disagreements about the economy and markets. Based on my email flow, that seems to have surprised and possibly confused some people. So, I want to spend some time this week talking about investing more generally rather than concentrating on the week .. read more

Contradictions

Stocks managed to finish the week on a positive note after a volatile ride that seemed to be based mostly on the changing geopolitical situation. Stocks fell with the imposition of retaliatory sanctions from Russia and rose as Putin seemed to back off at the end of the week. Thrown into the mix was an .. read more

Same Economy, Different Perception

The stock market and the traders who rule it seem to have had a change of heart last week. Stocks were down over 2% with most of that coming Thursday with a 300+ point drop in the Dow Jones Industrial Average. The Dow – and small caps – are now down for the year although .. read more

Predicting The Future Is Hard

“Conditions for a hard economic landing — like slack in the labor market and weak balance sheets — are still largely absent.” If the case for U.S. stocks is built on global growth and lower interest rates, other factors, too, suggest that the market is heading higher. For one, Washington is determined to avert a financial .. read more

A Change In Policy?

The Committee recognizes that low interest rates may provide incentives for some investors to “reach for yield,” and those actions could increase vulnerabilities in the financial system to adverse events. While prices of real estate, equities, and corporate bonds have risen appreciably and valuation metrics have increased, they remain generally in line with historical norms. .. read more

A Return To Normalcy

I think sometimes, with the stock market doing its best imitation of the Energizer bunny, we forget just how extraordinary are the times in which we live. We’ve been lulled to sleep by the relentless and mesmerizing march higher of stocks and all manner of risky assets. Maybe it’s just that having lived through two .. read more

It’s A Big World Out There

Home country bias is the tendency for investors to focus more on their domestic economy and markets. For most of the people reading this the US markets are home and with the Dow breaking 17,000 this past week the US is certainly getting a lot of attention. And it deserves it I guess considering the .. read more

Careful What You Wish For…

So be careful what you wish for ‘Cause you just might get it And if you get it then you just might not know What to do wit’ it, ’cause it might just Come back on you ten-fold Eminem, Careful What You Wish For There was a collective gasp on Wall Street last week as .. read more