Understanding today's realities
The June Rate Hike
The Federal Reserve takes the key interest rate north by another quarter point. On Wednesday morning, futures markets put the odds at 99.6% of a June interest rate increase by the Federal Reserve. Sure enough, the central bank made a move. It raised the key interest rate by 0.25%, taking the target range for theContinue Reading
Keep Calm, Stay Invested
Expect more volatility, but avoid letting the headlines alter your plans. Recent headlines have disturbed what was an unusually calm stock market. The political uproar in Washington may continue for weeks or months, and it could mean significant, ongoing turbulence for Wall Street. As an investor, a retirement saver, how much will this turmoil matterContinue Reading
How to Fix the Infrastructure With an Interest Free Loan
With the discussions going on about how to address the deteriorating infrastructure and how to pay for it, here is a creative solution I sent to our local congressmen. May 1, 2017 Here is an idea how to spend $1 trillion on infrastructure and do it where the cost of money is zero. In factContinue Reading
The Federal Reserve Raises Benchmark Interest Rate
On March 15, the Federal Reserve raised the benchmark interest rate by a quarter-point to a range of 0.75-1.00%. The increase was widely expected, and it represented a vote of confidence in the economy.1 This was the central bank’s second rate hike in three months, and Wall Street took it in stride, with the S&PContinue Reading
The Many Benefits of a Roth IRA
Why do so many people choose a Roth IRA? The Roth IRA changed the whole retirement savings perspective. Since its introduction, it has become a fixture in many retirement planning strategies. The key argument for “going Roth” can be summed up in a sentence: Paying taxes on retirement contributions today is better than paying taxesContinue Reading
The Intriguing Post-Election Rally
Why did some sectors rise more than others? Wall Street likes certainty. When startling financial, political, or societal events occur, volatility usually follows, and the major indices may fall. In late October, the Dow Jones Industrial Average went on a multi-day losing streak as Donald Trump caught up to Hillary Clinton in the polls trackingContinue Reading
What Will the Election Do to the Market?
Will volatility seize Wall Street? Or will calm prevail? Wall Street has had a rather calm summer. How about fall? Will volatility increase before and after Election Day? So far, the market is performing roughly in line with historical patterns. In 19 of the prior 22 presidential election years, the S&P 500 advanced fromContinue Reading
Comments on the Market – June 24, 2016
The Brexit vote surprised most of the pundits. How will this affect our economy and our markets? Frankly no one knows for sure, but while it may be an inconvenience to some of the large financial institutions, it should not have a material effect on the U.S. economy. Our feeling is that the world isn’tContinue Reading
What is the Likelihood of a Major Market Decline?
With the U.S. markets trying to hold on to some gains this year, many experts and gurus fear a stock market crash is imminent. We disagree. While the U.S. stock market may be a bit on the high side it is not stretched. The gurus are quick to point out that corporate earnings are declining,Continue Reading
Are We In the 7th Inning Stretch?
If you turn your television channel to CNBC in the morning or tune your car radio to the Bloomberg Surveillance show on the way to work, there is a good chance you’ll hear a stock market guru telling you that “we are in the seventh inning of this bull market”, implying an inevitable change inContinue Reading
