The remarkable rise and fall of GameStop (GME), a distressed video game retailer, has been nothing short of extraordinary. Echoing the speculative flurry of past bubbles, GameStop rallied from under $20 a share on January 12th to an intraday high of $483 on January 27th – a gain of over 2,300% in just ten trading … Continue reading GameStop: To the Moon … and back
The past year will arguably be viewed as the most unique year for equities in our lifetime. The year started as a promising one for equity markets. The global economy was improving, earnings were rising, valuations were tame, and management teams from many different industries were bullish on growth prospects. Then the global pandemic hit … Continue reading A 2021 Equities Preview. The Questions to Consider Entering the New Year.
It’s December 31st, 2019 and financial markets around the world just capped off one of the best years on record. At that time, if someone had told you we were on the cusp of one of the worst global health crises of all time – one that would all but cause the global economy to … Continue reading The Resiliency of Markets and Mankind
On January 5th, 2021, Democrats unexpectedly swept the Georgia Senate runoffs, securing the Senate majority for the Democrats and returning unified Democrat control to Washington for the first time since the first two years of the Obama administration. Despite indications that the race was narrowing, the market had expected Republicans to maintain Senate control. There … Continue reading Democrats Take Georgia
Just before breaking for the holidays, Congress passed the $900 Billion Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to help households, retirees, small and large businesses, and to provide further aid in vaccine distribution. Here are some important highlights: Economic Impact Payments $600 per adult, and $600 per child, based on income as reported … Continue reading COVID-19 Aid Act of 2021: Key Highlights
As much as most would like to forget about 2020, it was a year to remember for the fixed income markets. From the historically aggressive monetary policy of the Federal Reserve, to extreme volatility throughout the fixed income markets due to the pandemic, to a significant change in Fed policy, 2020 was full of surprises … Continue reading Credit Markets: A Year to Remember?
Since bottoming at a close of 0.54% on March 9, 2020, the 10-year US Treasury yield has slowly and quietly risen nearly 70% to 0.89% as of this writing. With the Fed holding short-term lending rates in the 0-.25% range, the slope of the yield curve has steepened dramatically as seen in the chart below. … Continue reading The Good and The Bad of Rising Interest Rates
The financial media has recently begun to focus on the ongoing rotation from U.S. growth stocks to U.S. value stocks. Specifically, a rotation out of high valuation, momentum growth companies. It’s interesting to note this rotation actually began to occur quietly in September – something we’ve been anticipating for a number of months now. In … Continue reading The Rotation from Growth to Value
We examine four possible Presidential election outcomes and the effect on our portfolios. Every four years, as the presidential election approaches, there is typically a certain level of anxiety investors feel. The anxiety revolves around the uncertainty inherent with any election. The usual worries being: Who will win? What will be the agenda for the … Continue reading Managing Portfolios During the Most Unique Election of Our Time
In this article we examine the interplay of markets, the economy, and volatility. Layoffs. Bankruptcies. Vacancies. Despite persistent negative economic news, financial markets have rallied. This disconnect can cause confusion. How can these two dynamics take place at the same time? Confusion can lead to fear. In fact, one measure of individual investors’ fear of … Continue reading Early Cycle: Disconnects and Volatility
