One key question helps investors determine risk tolerance. And folks, it’s a tough one… How willing are you to sacrifice potential rewards to reduce potential losses? These days, investment firms assume they can marshal their extensive brainpower and financial muscle to automate the process for answering this question. They want you to trust their computers, …
I don’t know about you, but I’ve never lost a moment of sleep worrying about rising rates… And that’s despite having a significant part of my overall portfolio dedicated to fixed income. After all, I’m hoping to have a steady stream of income in retirement. The Federal Reserve’s shenanigans don’t matter to me. It’s OK …
You might’ve forgotten doing this… But I can almost guarantee you did. At some point, you filled out a “risk tolerance” questionnaire for your broker… These days, every broker has one of these questionnaires. They ask questions like, “Do you plan to keep pace with the stock market or would you like your assets to …
It’s a tough world for folks living on a fixed income right now. And the change was dramatic… For about 40 years, bond investors felt like superstars. Interest rates moved relentlessly lower. And since bond prices move inversely to yields, that means they kept going up. The long-term uptrend made buying bonds an easy win …
We covered the idea of “monetary velocity” yesterday… That’s the speed at which money circulates through the economy. It’s a crucial part of the well-recognized link between the money supply and inflation. But as we discussed, the eggheads have it wrong… You see, they thought monetary velocity was relatively stable. But in reality, it has …
We learned last week that inflation remains out of control… The U.S. Bureau of Labor Statistics announced that the Consumer Price Index was 8.5% higher in March than a year earlier. That’s the highest year-over-year reading since 1981. Of course, government experts might point out that it’s not so bad for folks who are willing …
Editor’s note: The markets and our Chaikin Analytics offices will be closed tomorrow, April 15, to commemorate Good Friday. Because of that, we won’t publish the Chaikin PowerFeed e-letter. Look for your next issue on Monday, April 18. Investment stories are fantastic… And a great storyteller can almost always come up with one. Researchers consistently …
I don’t blame you if you think we’re on the edge of a bear market… After all, interest rates on shorter-term U.S. Treasury notes just exceeded the interest rates on longer-term Treasury bonds last week. That hadn’t happened since 2006. The “inversion” was modest and brief. But importantly, this development is a proven recession indicator. …
The world is a scary place for investors right now… Russia’s war in Ukraine continues… Inflation is at a multidecade high… We’re still seeing supply-chain shortages… And the Federal Reserve is raising interest rates. With all of that uncertainty in mind, it’s tempting to bet against the market. But in reality… it makes more sense …
Despite all the volatility, investors are in love with many types of stocks right now… Energy stocks are leading the way. That makes sense since the price of oil is nearing an all-time high. And earlier this week, we talked about certain financial companies that should do well amid the “brand-new ballgame” of rising interest …
The Market Loves This Sector… Even When It Hurts Read More »
