Next time you are in Denver, I encourage you to stop by the LocalHost Arena in Lakewood (and check out the scene. Pull up a chair and give computer, console, or virtual reality gaming a try. It’s always fun to try new things – and it is super fun to be able to play football with the kids without concern for a bum knee.
Negative interest rates are not a “net-benefit” to the global economy, rather negative interest rates are a travesty of the global economy. The only folks who benefit are the risk-takers who borrow money cheaply (or even get paid to do it) which they will never repay to speculate on ideas, many of which will never pan out. And who loses? The savers. Our parents and grandparents pay for this speculation – and later, so too will our children. Negative interest rates are a symptom of a very bad global economy, not a benefit to the economy. It’d be like calling a cast a benefit of a broken leg. It makes absolutely no sense. And these are the people calling the shots...
It’s crunch time in the Elevate offices. Jacob and I are in the final stages of preparation for the third and final level of the Chartered Financial Analyst® (CFA®) exam.
After a 10-year economic expansion... a humongous expansion of debt (far in excess of GDP growth)... and after stocks have gone higher and higher and higher for what seems like forever... the stage is set for what my colleague Steve Sjuggerud calls the "Melt Up."
As the name implies, the Money Weighted Return weighs returns based on how much (or how little) money was in the account at the time the return was generated. What this means to the investor is simply – the MWR answers the question “how am I doing toward my goals?”. This is the number that you would use to gauge your position in relation to your long-term goals.
What’s in a number? If a picture is worth a thousand words can a number be worth an exponential amount of that thousand? Dare I answer with a resounding “yep!”.
Quarter one of 2019 is in the books. The markets got off to a great start this year, but most of the return came in the first 2 months.
Even when an analysis is based on fraudulent financial reports - the trailing stop is the investors last line of defense.
The Fed deciding not to increase rates, and instead to “be patient” is another way of saying they have zero confidence in our economy’s ability to handle rates at even 3% for 10 years – which is incredibly bearish.
It’s so bearish that the market loves it. The market loves easy money. Many market participants (and people in general) fail to look at the second order effects and instead focus only on the first order effects of a decision.
In February, markets continued to power higher with the S&P 500 Index (SPX) up 2.97% bringing the year-to-date return to 11.08% through the end of the month. At this rate – the market should be up 66.48% this year, right? I think this is an unlikely outcome but it sure is fun to extrapolate.