The current bull market of 3,453 days is now the longest on record, exceeding the bull run from 1990 to 2000. Since the lows of March 2009 through mid-August 2018, the S&P is up over 300%, the Dow is up over 250% and the Nasdaq is up 450%. The best performing sectors, according to the Wall … More Can the Bull Still Run?
When the stock market gets jittery, as it has during 2018, investors’ thoughts often turn to gold. Gold is seen as a safe haven during geopolitical and financial instability. It is also considered a hedge against inflation, a hedge against a declining dollar, and a good source of portfolio diversification. The benefit of owning gold … More Should You Buy Gold?
General Electric (ticker GE) is getting kicked out of the Dow Jones Industrial Average (DJIA) as of June 26, 2018. This is not a surprise to anyone who has been following the stock over the past several years. At its recent price of just under $13, GE is down almost 80% from the high $60 … More Why GE Got Kicked Out of the DJIA
In my April newsletter, I described the Trivial Pursuit game that we played (unsuccessfully) during our recent three-week Brazilian cruise. The winning team got the big prize, and the remaining nine teams entered the playoff round to see who would come in second. Our ten-person team was in dead-last position. Each team could bet anything … More Win By Not Losing
Last month I went on a three-week cruise to Brazil and the Amazon. One of the popular onboard activities was Trivial Pursuit. Our ten-person team was comprised of one couple from England, one from Scotland and the six of us who were traveling together. We six all lived in the same city and had similar educational … More What Trivial Pursuit Taught Me About Investing
The Federal Reserve recently voted to raise the benchmark fed-funds target rate by a quarter percent, to a range of 1.5% to 1.75%. They also indicated rates would probably be raised two to three times this year and three times next year. This is bad news for bond prices. Why? Imagine you own a $1,000 … More Watch Out For Falling Bond Prices
Famous days live in history. February 5 and February 8, 2018 may be among them, for those are the two days in one week when the Dow dropped over 1,000 points, down over 10% from its previous highs, officially marking a stock market correction. We all knew it was coming. The stock market has been … More How Much Risk is Too Much?
The FAANG stocks were on a tear in 2017, significantly outperforming both the S&P 500 and the Nasdaq index. What are the FAANGs? It’s Facebook (ticker FB), Amazon (AMZN), Netflix (NFLX), Google parent Alphabet (GOOGL) and Apple (AAPL). These are high-growth stocks that seem to be always in the news. If you didn’t own these … More Can You Afford FAANGs?
Successful investing is all about predicting the future. Buying shares of companies which will have strong earnings growth. Avoiding those which will get mired down in product recalls, management missteps, or weak demand for their products. But how can you know in advance which is which? It isn’t easy. As I wrote in Money Grab, Picking … More Is Your Crystal Ball Cloudy?
Have you ever been at a party where someone took a big bite of a nacho, then dipped it back into the salsa for another serving? It’s called double dipping. Pretty yucky, right? And not very healthy. You may be doing the same thing with your investing and not even know it. Let’s say to … More Is It Ever Okay to Double Dip?