President Trump recently unveiled a sweeping set of tariffs on exports from dozens of countries into the United States. Tariffs are duties imposed on imported goods by a government. They are intended to protect domestic industries, encourage local production, and generate tax revenue. In fact, tarif...

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...

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...

Looking back at 2023, one thing we can reflect on is the winding road we navigated along the way. The last several years we’ve had alternating results and abnormal returns. In 2020, the S&P fell more than 33% before recovering before year’s end to finish up 18%. In 2021, the market was up 29%. In 20...

One of the largest competitors to the stock and bond markets is real estate. In the United States alone, real estate is worth $47 trillion in June 2023, according to Benoit Properties.¹ Owning real estate has been the cornerstone of the American Dream since the Pilgrims landed four hundred years ago...

 “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...

“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...

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 ...

During the time I was writing this, I was interviewed for a podcast in which I discussed this very topic. To listen, click here.

For most of the last two decades, bond mutual funds were an easy and convenient way to purchase bonds. However, as rates fall, you are getting diluted by new money flowin...

‘‘Within our mandate, the ECB is ready to do whatever it takes to preserve the EUR. And believe me, it will be enough.” 

Mario Draghi, July 2012 

''We will keep at it until inflation is down to 2%. And our monetary policy tightening will be enough. It will be enough to restore price stability.''