Iāve 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.
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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.Ā
Iāve received several emails asking what we are doing ahead of the November 5th election.Ā The answer is simple:Ā NOTHING!
There is a general rule of thum...
A common question I receive is āwhat interest rate does the Federal Reserve Bank (āFedā) controlā and āhow does it affect me?ā Since Iāve received the question a few times, hereās 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 ā 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...
One of the largest issues this election cycle will be the deficit. In my opinion, it hasnāt received nearly enough attention even though it has received a good amount. The fiscal situation in this country trumps (pun intended) anything to do with the border or democracy.
The problem comes down to a...
Ā āWeāre aware of the risk that we would hang on too long. Weāre very focused on not making that mistake.ā
- Jerome Powell, Fed Chairman
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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...
Time to worry. Just kidding.Ā
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...
During the time I was writing this, I was interviewed for a podcast in which I discussed this very topic. To listen, clickĀ here.
For most of the last two decades, bond mutual funds were an easy and convenient way to purchase bonds.Ā However, as rates fall, you are getting diluted by new money flowin...
āāWithin our mandate, the ECB is ready to do whatever it takes to preserve the EUR. And believe me,āÆit will be enough.āĀ
Mario Draghi, July 2012Ā
''We will keep at it until inflation is down to 2%. And our monetary policy tightening will be enough.āÆIt will be enoughāÆto restore price stability.''Ā
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