Blog

Category: Equities

Diversification is often said to be the only “free lunch” in investing, delivering superior risk-adjusted returns over the long run. So why doesn’t everyone do it? Let’s take a look… Responsible financial advisors across the country are apologizing to their clients for the seventh year in a row. Why? Because the diversified portfolios they have […]

  • Posted in Equities, Investing
  • Comments Off on Diversification and the Fear of Missing Out

“Whether you’re excited or nervous when your favorite asset falls in price marks whether you’re investing or merely speculating.” – Naval Ravikant Are you investing or merely speculating? Naval Ravikant had an interesting take on this most important of questions (see above quote). The deciding factor: whether you’re “excited” or “nervous” to see your asset […]

  • Posted in Equities, Investing
  • Comments Off on Are You Investing or Merely Speculating?

The Stock Market Is Not the Economy

U.S. economic growth in the 1st quarter came in at 2.3%, right in line with the average level of the expansion that began in June 2009. As you can see in the chart below, this has been the slowest growth expansion in history. Data Sources for all charts/tables herein: NBER, FRED, Bloomberg, NYU.EDU Has that […]

With the yield curve hitting its flattest level of the expansion last week, many are wondering what impact that will have on the stock market. Data Sources for all tables herein: NBER, FRED, Bloomberg. Using monthly data. The yield curve is a leading indicator of the economy, but the stock market is one as well. […]

  • Posted in Bonds, Equities
  • Comments Off on The Relationship Between the Yield Curve and the Stock Market

What a difference 9 years makes. On March 9, 2009, the market capitalization of Apple, Google (now Alphabet), Amazon, and Microsoft stood at $74 billion, $92 billion, $26 billion, and $135 billion. Their combined market cap: $327 billion. Data Source for all charts/tables herein: YCharts. 9 years later these four companies would grow to become the […]