It’s Time to Hunker Down with Your Investments, Too

The whirlwind of market volatility persists, with the stock market posting dramatic single-day moves that are frequently drawing comparisons to Black Monday (1987), the Great Depression, and the 2008 financial crisis. It took some time, but the global response to the crisis is accelerating and strengthening. From a public health standpoint, countries are ramping up […]

Don’t Panic—Ask Yourself These Questions Instead

Frantic, non-stop negative headlines make it seem like the apocalypse is not only coming…but that it’s already here. I can assure you, it is not. Monday’s trading action across the equity, bond, and commodities markets sent shockwaves around the world. The S&P 500 fell -7.6% in a single trading session – the biggest decline since […]

How Should Investors React to the Coronavirus?

Many readers are likely growing concerned about the spread of the coronavirus and the potential impact on the market (and your health). I understand the emotional difficulty of the moment, and I understand the challenges of keeping a cool head amidst the media and market frenzy. Market volatility, accompanied by a blitz of negative news […]

Assessing the Market Impact of Coronavirus

As I write, there are approximately 80,000 confirmed coronavirus (Covid-19) cases with over 2,600 reported deaths – numbers that are likely to rise even further in the coming weeks. Reporting on the virus is abundant and scary, and the capital markets reacted sharply this week by posting some of the biggest declines seen in years. […]

What the 2019 Earnings Recession Means for 2020

In 2019, total earnings (or aggregate net income) for S&P 500 companies was expected to be down -1.5% on +3.1% higher revenues.1 The takeaway is simple: corporations made less profit in 2019 compared to 2018. Even still, the S&P 500 index was up +31.49% over the same time frame.2 Many readers are probably noticing the […]

The #1 Threat to Long-term Returns

One of the country’s leading experts in behavioral finance is a Santa Clara University professor by the name of Dr. Meir Statman. Some readers may recognize Dr. Statman’s name right off the bat. He has published numerous articles and books about investor psychology, and he has done extensive research on investment decision-making – detailing common […]

4 Reasons Markets Will Be Volatile This Year

Equity investors should justifiably feel good and confident entering the new year. 2019 was a strong year for US and global stocks, and as it stands today the economy looks poised to add more growth in 2020 – with a rebound in corporate earnings to boot. Since I’m about to give readers four reasons to […]

4 Risks for Investors in 2020

When it comes to assessing risk in the economy and equity markets, I have a good guiding principle: if people are ignoring a risk and talking about it infrequently, that’s a signal we should be paying close attention to it and talking about it more. To be sure, history suggests that real risks are rarely […]

Warning Sign: Unprofitable Companies’ Shares Soaring

We have been noticing a trend not unlike the one we saw during the late 1990’s market run-up: an increasing number of publicly-traded companies reporting losses quarter after quarter, while their stock prices soar. This disconnect of losing money – while enjoying strong stock appreciation – should have investors treading carefully in the 11th year […]

CAPE Ratio Says Market is Overvalued…But Is It?

The Nobel laureate economist, Robert Shiller, recently penned an article in The New York Times warning, amongst other things, that market valuations (as measured by the CAPE ratio) were at levels not seen since 1929 and 1999.1 Market historians would note that 1929 and 1999 preceded weak decades for market returns, with the Great Depression […]