Bonds for Inflation – Series I Bonds

The 9.62% interest rate looks high; however, the *real* interest rate is about the same as it has always been… effectively zero – or negative when taxes are taken into account.

Ukraine War Market Impact Update

Since the war in Ukraine began, its effects on the financial and energy markets have dominated the financial news. I decided to send this quick newsletter update to address some common concerns. 1. First, some perspective: The stock market has actually been mostly flat since Russia invaded the Ukraine on February 24th. Much of the market decline […]

Summer Market Update

After a great performance for the stock market in 2019, I concluded the year’s final newsletter with, “I anticipate a rockier ride in 2020.” I had no idea how rocky the ride would end up being. The stock market continued its upward climb until February 19th, when the U.S. began locking down and the S&P 500 began its […]

Can the market justify “new highs?”

Since headlines of “new market highs” have been in the news, I have fielded many questions and concerns about how the market can be setting new highs (the S&P500 was down over 30% in March! It seems so long ago…) while we are in a pandemic induced recession where things have not yet returned to normal. There […]

Market Update – April 2020

When everyone knows the playbook, the plays stop working. That seems to be the case for everyone who has dusted off their playbooks from the Great Financial Crisis and are trying to make sense about what is happening in 2020.  The S&P 500 has increased 27% from the March 23rd lows at the time of this writing. Such […]

Market Update – March 2020

Less than a month ago, the markets were hitting new highs as positive economic data indicated that the US economy was continuing to grow. Then Coronavirus took a foothold in Europe and the United States. Fear-driven headlines and uncertainty caused the markets to plunge and behave erratically since.  However, despite the headline negativity, there is much […]

Should I diversify my ESOP?

If you work for a company that offers an ESOP (Employee Stock Ownership Plan) you may be asked if you want to diversify a portion of your company stock. You may wonder if this is a good idea and the answer is, in most cases, yes!

Does Low (Minimum) Volatility Investing Have the Potential to Persist?

Paradoxically, low-risk stocks historically have outperformed higher-risk stocks over the long run. They outperformed due to the behavioral biases of investors. Dr. Daniel Crosby, behavioral finance expert, has devised a three-part test (The Crosby Test) to determine if an investable idea has the potential to persist. The criteria are: The idea must be sensible. The […]

A Potential Effect of Risky Funds on a Portfolio

Vanguard had a fund that invested in precious metals and mining stocks that had performed so poorly in the past 10 years, that Vanguard decided to rename the fund and completely change its investment strategy. This shouldn’t be a complete surprise, as $10,000 invested in the fund in 2008 would be worth just $5,051 at the […]

A Canadian Cannabis Producer Offers a Harsh Lesson About Investing Frenzies

Amazon closed today at $1,934.36 per share. Wouldn’t it have been nice to have had the foresight to purchase this stock back in 1997 when it traded for less than $2 per share? A $10,000 investment at that price would be worth almost $9.7 million today. Unfortunately, this kind of wishful thinking can get investors […]