Stocks have gone up a lot in this expansion but so have earnings – on an almost one for one basis. But earnings are volatile and we’ve seen this plenty of times before. In this article at Project Syndicate, Robert Shiller compares the current period to the 1920s and other...
Stocks took another beating last week as the scope of the coronavirus shutdown started to sink in. The S&P 500 was down 15% last week with most of that coming on Monday after the Fed’s emergency rate cuts. Our accounts performed much better than that, but were still down...
Alhambra CEO Joe Calhoun talks about last week's rise in bond yields and what it means.
One of my favorite financial writers, Edward Chancellor, has posted this article over at ThinkMarkets, an NYU economic blog. Chancellor is the author of Devil Take The Hindmost: A History Of Financial Speculation, by far the most literate book ever written on financial manias. Yes, Chancellor says, the US is...
Have we entered a new bull market? Was the 35% pullback in the S&P 500 in March the fastest bear market in history? Or is this just a continuation of the bull market that started in 2009, interrupted by a rather large correction? Bull markets and bear markets are...
A short interview with Jeremy Siegel by Robert Huebscher in Advisor Perspectives. Siegel touches on a number of interesting topics: The US stock market is fairly cheap at 16 times next year's earnings - as long as interest rates are around 3%. The volatility we've been seeing lately is...
Japan's stock market hasn't done much this year - the Nikkei is up about 4% YTD - but you can't blame that on poor corporate earnings growth. Earnings for the Nikkei are up about 30% year over year and profit margins are hitting new highs (from the FT): Shinzo Abe...
Howard Gold had an article last week at Marketwatch: Why is the US stock market weak? Because the economy is too strong. What does it mean for the economy to be "too strong"? Isn't growth supposed to be good for stocks? Gold's reasoning is that Fed tightening is driving up the...