On December 19 Federal Reserve chairman Jerome Powell announced that the Fed would increase its target federal-funds rate to a range between 2.25 – 2.50 percent and suggested that two more increases may be in store for 2019. The stock market, which had maintained some expectation that the Fed might be done raising rates, dropped […]

The U.S. stock market fell by 6.8 percent in October (all returns cited in this article refer to the S&P 500 and include reinvestment of dividends). As of late November the market remained volatile but had failed to make up any ground. Investors are understandably concerned. But this decline follows an unusually long period of

As fiduciaries we are obligated to act in our clients’ best interest. We often answer the call by providing recommendations that are conditional rather than absolute, because as economists we recognize that perfect solutions are rare – more often there are only trade-offs to be evaluated. These trade-offs, furthermore, vary among clients. A lack of

A key element to avoiding financial tangles is keeping your finances on an even keel through sound planning strategies. Sound finances are not necessarily achieved through an extraordinarily high income, or making a killing in the stock market or real estate. Many people have attained those goals, yet still find money slipping through their fingers

Short term changes in stock prices are neither predictable nor within your control, so there is little point in spending time trying to pick stocks or forecast the market. Tax planning, however, is well within your control. Investors who have significant IRA or 401(k) account balances as they approach or enter retirement should review the

Investors are beset with alarming stories in the media that include a global trade war, rising price inflation and pending interest rate increases, just to name a few. Below we reprint a section of a poignant article reminding readers that during such times the value of a prudent investment philosophy cannot be overstated. Over their

Global stock market prices have fallen recently amidst news of a possible trade war, rising interest rates, higher oil prices, divisive politics and a myriad of other headlines. While others try to divine what it all means for the future, we’ll take a pass, and we encourage you to do so as well. Wise investors

Edward Stringham, the president of our parent organization, AIER, recently appeared on Bloomberg News to discuss bitcoin and blockchain technology. The interview, which can be viewed at Bitcoin Not for the Faint of Heart, was instructive in several respects. We suspect many people are both mesmerized and bewildered by contradictory claims of various “experts.” Some

The histogram shown below depicts the distribution of calendar year nominal returns for the U.S. stock market (represented by the total annual returns of the S&P 500 index) since 1926. Last year’s return of 21.8 percent was well above the median annual return of 14.0 percent. It marked nine consecutive calendar years of positive returns

The Federal Reserve’s Board of Governors has made clear its intention to gradually increase short-term interest rates in coming months. Manyin the financial media have gone much further by describing an all-but-certain increase in rates in general, to include intermediate and long-term rates. The fact is the Fed has considerable control over short-term rates through