The market boomed again in 2024 for the second year in a row. 2022 seems like ages ago, the last bad year for the markets. I wrote then about how bad it was in aggregate because 2022 was the first year that both stocks and bonds were down double-digits (typically bonds rise when stocks fall).

In 20...

I’ve been on this bandwagon for some time now but as the market zooms, we have to wonder what future returns will look like. The S&P 500 is on pace for its second straight 20%+ annual return. This has only occurred five times over the last 75 years, per Bloomberg.

20%+ returns in the market in a...

As we approach the upcoming presidential election, I want to address any concerns you may have about its potential impact on your investments. 

I’ve received several emails asking what we are doing ahead of the November 5^th election.  The answer is simple:  NOTHING!

There is a general rule of thum...

A common question I receive is ‘what interest rate does the Federal Reserve Bank (“Fed”) control’ and ‘how does it affect me?’ Since I’ve received the question a few times, here’s a memo!

The Fed controls the very shortest maturity rate called the Federal Funds rate. It is the interest rate that ba...

The First Rate Cut Since 2020

The Fed cut the interest rate they control (called Federal Funds) for the first time since March 2020 – during the panic of Covid. They started with a larger half a point cut. That was the right call in my opinion as inflation is down to 2.6% year-over-year and unemplo...

The S&P 500 Index hit its last all-time high on July 16th at 5,669. Since then, the market (as of this writing) is down about 8%. However, some stocks, namely Mega cap tech stocks, are down far more. The SPDR Technology Index ETF (XLK) is down 16% since its July 10th high.  

What is driving this mo...

So far it has been a good year with the S&P 500 up 15.3% in the first half.¹ However, there are some dangers lurking beneath the surface, which we will discuss. We will also dive into the interest rate environment and inflation and how it forms the basis for managing portfolios.

One thing I’m watch...

The short answer is: that’s not what you should be focusing on. Instead, investors should be asking, “at today’s valuation, is it a good time to invest?” 

Investing at all-time highs may seem scary for investors. We are told to buy low and sell high and buying at all time highs feels like the oppos...

“Throughout history, whenever most investors believed the worst about a particular asset class, such has often been the right time to start buying. As we have often discussed, psychological behaviors account for as much as 50% of the reasons investors consistently underperform the markets over the l...

 “We’re aware of the risk that we would hang on too long. We’re very focused on not making that mistake.”

- Jerome Powell, Fed Chairman

Less than two months ago, I wrote to clients that the pivot was coming over the next year. Little did I know it was coming in a couple of weeks as the market q...

The Fed kept rates at current levels at their meeting this week, but whether they are done with their tightening or not is yet to be determined. If there is one more hike (or even two), it doesn’t really matter at this point.

Monetary policy is now extremely restrictive and while it takes time for ...

Time to worry. Just kidding. 

On August 2nd, Fitch Ratings, one of the nationally recognized statistical ratings organizations, or NRSRO, downgraded the U.S. credit rating one notch to the second highest rating. Fitch is one of the ten approved by the SEC to provide an assessment of the creditworth...