The financial media constantly addresses current and expected Federal Reserve policy. This is not surprising as the Fed has tremendous influence over money supply and credit, the lifeblood of the economy. In this issue we delve further into the Fed’s influence over rates and what investors should take away from it. The Fed either sets […]

The Dow Jones Industrial Average (DJIA or “the Dow”) crossed the 40,000 level in mid-May. This was perhaps an inevitability, given that stocks have always reached new highs, given enough time. Nonetheless, investors take notice of such milestones, which provides an opportunity to reflect on markets. We noted in our February Investment Guide that the

Geopolitical tensions continued to dominate headlines in April. Iran launched a direct attack against Israel, and Israel retaliated shortly thereafter. In global markets, oil and gold prices were volatile, though the impact was short-lived as any meaningful price changes reversed course within days. Stock markets wavered in the weeks around these events. The direct impact

Steep declines in the stock market often follow periods of extreme enthusiasm and growth. The bear market of 2001, for instance, was preceded by a long surge in stock prices during the dot-com boom. Market highs can drive mixed emotions. When the market hits new all-time highs, as it did recently, investors are pleased with

Nvidia’s fourth quarter earnings, released in February, ignited a fresh surge in investor enthusiasm, propelling the stock price to new heights. The company (ticker NVDA) is the poster child for the artificial intelligence (AI) revolution currently gripping the stock market. Central to Nvidia’s success are its Graphics Processing Units (GPUs) – innovative computer chips that

In January, the U.S. stock market reached an all-time high. The S&P 500 Index, which includes dividends, closed the month with a 1.7 percent gain. For some, this signals the end of the “bear market”. Bear markets have always come to an eventual end in the U.S. stock market. The worst of these was the

The last two years have been a whirlwind for capital markets. 2022 saw one of the worst performances on record for the traditional 60/40 portfolio as stocks and bonds grappled with significant setbacks. Heading into 2023, the consensus view foresaw a continuation of the challenges, predicting a probable recession. Contrary to these expectations, a recession

In its latest decision, the Federal Open Market Committee (FOMC) opted to keep overnight lending rates unchanged at the December meeting. This choice preserves the target range, which has remained the same since July 2023. The Fed signaled a likelihood of keeping rates stable in the near future, while also hinting at the possibility of

Investing in the stock market is emotionally difficult because of the possibility of loss. The market fluctuates from day-to-day and month-to-month and can be wildly erratic. It is all but impossible to consistently predict its direction successfully. Despite the random nature of short term stock returns, investing in the stock market is not like a

As Thanksgiving approaches, the world appears gloomy. War and geopolitical strife dominate the news. Several worrisome trends loom over the US economy, despite signs of growth (see page 66). Meanwhile, rather than inform, the media seems increasingly driven to inflame our passions regarding crime, immigration, education and other serious matters. In this environment it is