Month: June 2015

The S&P is not a 6-month CD

  • Markets
  • Charlie Bilello

This may come as a surprise to new investors, but the S&P 500 is not a risk-free certificate of deposit (CD). For more than three years, though, it has been behaving as one. Had you purchased the S&P 500 (SPY) at the end of any week since August 2011 and held for six months, you would […]

Gold: What is it Good For?

In a world increasingly focused on the short term, five years can seem like an eternity. How many among us would stick with an investment that has gone nowhere for five years? That is precisely the question Gold investors are faced with today, with a return of -7.4% over the past five years. The case […]

How Reaching for Yield Ends

After six and a half years at 0%, savers and investors are beyond tired of waiting for the Federal Reserve to raise interest rates. They are desperate and reaching for yield wherever they can find it. Last June, Janet Yellen famously noted that there was “some evidence of reach for yield behavior.” Indeed, just as […]

  • Posted in Random Musings
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Mr. Zero Interest Rate Policy

“If the Fed doesn’t raise rates, that’s bad for the long bond because the bond wants it to tighten. And it’s positive for stocks because stocks love their friend, Mr. Zero interest rate policy.” – Jeff Gundlach on CBNC Stocks indeed love their little friend, Mr. Zero interest rate policy. He has been the one constant […]

The Stock Market is Not the Economy

We often hear that the stock market provides a good indication of the health of an economy. It may be time to rethink that notion. The best performing stock market in the world this year, up over 200%, is none other than Venezuela. The Caracas Index has more than quintupled over the past year and […]