Following the Brexit Signs

Yesterday the United Kingdom made history by delivering a surprise vote to leave the European Union. Though the odds were close, market pricing was tilted towards a "Bremain" vote -- so "Brexit" was an unexpected outcome.   Markets reacted commensurately today,  European equity markets were down more than 7% and the Sterling down more than … Continue reading Following the Brexit Signs

Halfway Between Double or Nothing

The official numbers aren't in yet but it looks like 2015 ended without a bang for US markets.  The S&P 500 managed somewhere around 1% total return and the Barclay's Aggregate ended up about .5% -- nothing worth getting excited over. Of course, across the globe and everywhere in between there were substantial divergences in … Continue reading Halfway Between Double or Nothing

Never a Wrong Time

Market volatility picked up significantly in August and US stocks have been teetering in and out of correction territory ever since.  Uncertainty is pervasive and investors' nerves are rattled.  At times like these, it's more important than ever to manage expectations and maintain appropriate expectations. A market correction is generally defined as a pullback of … Continue reading Never a Wrong Time

Hot or Not

Bonds continue to be unpopular among professional investors.  Over the past year, many well-known investors including John Paulson and Warren Buffet have expressed their preference for stocks over bonds. It's easy to understand why. The current 2.45% yield on a 30 year Treasury is not only historically low but is practically negative when adjusted for inflation.  At least stocks have the … Continue reading Hot or Not

Patient Trigger Finger

So what did the stock market think about S&P's downgrade?  We got an answer today, in bright flashing red.  The Dow sank 634 points today - the sixth largest single-day drop in history. To be fair, the sell-off wasn't rooted entirely in the downgrade (which was widely expected).  Rather, as I have written before, it looks like the market is … Continue reading Patient Trigger Finger