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Category: Equities

This Is the End

This is the end. The end of accommodation. The end of easy money. The Federal Reserve hiked interest rates last month for the 8th time, bringing the Effective Fed Funds Rate up to 2.18%, its highest level since April 2008. More importantly, the Fed Funds Rate now stands above U.S. core inflation (2.17%) for the […]

Does Currency Hedging Reduce Volatility?

“Currency adds volatility – and that can be costly.” – Sales Pitch One of the main selling points for hedging currency exposure in foreign equities is a reduction in volatility. The argument typically goes as follows: as a U.S. investor, why take on additional currency volatility if you don’t have to? Simply hedge the foreign […]

US manufacturing is booming. In a report released this week, the ISM Manufacturing Index moved up to 61.3, the second-highest level in the last 30 years. Data Source for all charts/tables herein: FRED, Bloomberg Many are saying that’s great news for the stock market because increased manufacturing activity is evidence of a stronger economy. This […]

Do All Leveraged ETFs Go to Zero?

When it comes to leveraged ETFs, two of the more popular myths are as follows: “They all go to 0 over time.” “If you hold them for more than a few days, you will lose money.” Fact or Fiction? You be the judge… The 3x Long Nasdaq 100 ETF (TQQQ) was launched in February 2010, […]

  • Posted in Equities, Myths
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US Consumers are feeling pretty confident these days. A survey just released by the conference board showed the highest reading since October 2000. At a level of 133.4, consumers are more confident today than 94% of historical readings going back to 1967. Data Source for all charts/tables herein: Conference Board, Bloomberg If you asked the […]

  • Posted in Economy, Equities, Myths
  • Comments Off on Is a Confident Consumer Good for the Stock Market?