Why Isn’t The Market Behaving Properly?

Why Isn’t The Market Behaving Properly?

What’s going on with the stock market right now? We started the year with the worst market performance in history.  In February, volatility continued to reach multi-year highs.  As if that weren’t bad enough, the media reported in March that second quarter earnings were expected to be broadly lower. Things were shaping up to be…
Read more

Can The U.S. Government Go Bankrupt?

According to Time Magazine, the answer is yes. I refer to their recent cover proclaiming “Make America Solvent Again!” and touting our current $13.9 trillion debt level.  Sounds more like a rallying cry for a political candidate than an attempt to educate the public on economics.  But that’s pretty typical for the media these days. …
Read more

Does Diversification Still Work?

A cornerstone of Modern Portfolio Theory is the concept that you can reduce the risk (variation) of an investment portfolio by adding securities whose performance does not correlate with those in the portfolio. This led to the identification of asset classes – groupings of securities that perform similarly under certain economic conditions – and ultimately…
Read more

Dealing With Student Debt

As of the third quarter of 2015, student debt in the U.S. has soared to nearly $1.25 trillion. That’s trillion with a “t.”  As little as ten years ago it was only $350 billion, less than half the amount of credit card debt held by consumers.  Today it’s 70% higher.  Why is this happening and…
Read more

The Consequences of Negative Interest Rates

Ever since the crisis of 2008 the Fed had been utilizing what’s been called “quantitative easing” to focus on commercial banks to stimulate the economy. This approach involved purchasing a significant volume of bonds to drive up bond prices and reduce interest rates, with the expectation that the lower rates would stimulate demand for more…
Read more

What’s Going On With The Markets?

In the past two months we’ve experienced one of the most volatile starts to a new investment year in history. Surely there must be a good reason why this is occurring.  Is it a harbinger of a severe economic downturn?  Recognition that stocks have been overvalued for years?  A response to the fact that Donald…
Read more