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

A popular media refrain of late suggests that stocks are overvalued compared to historical benchmarks. The Wall Street Journal, for instance, recently opined that “Stocks are expensive (and not just the big ones)”. Meanwhile, The Economist declared, “American stocks are at their most expensive in decades”, and MarketWatch concurred, affirming that “U.S. stocks are expensive

Since inflation began to surge in early 2021, several key tax parameters indexed to inflation have increased as well. These provisions helped to protect households’ real, after-tax income. But not all elements of the Internal Revenue Code (IRC) are indexed to inflation. These omissions can cost tax payers dearly. Many IRC stipulations are indexed to

Money is a tool – it is a means to an end. Money alone does not bring life satisfaction, but it can allow you to achieve greater freedom. Retirement may be the ultimate expression of freedom. Retirement planning usually involves an assessment of whether your life savings are adequate to cover specific planning objectives –

In recent years growth stock returns have been the primary drivers of US stock market returns, while value stocks have lagged. The following question from a long-time subscriber provides an opportunity to revisit this topic. Q — On page 38 you state that “over the long-term large cap value stocks have generated annualized returns above

U.S. consumer confidence declined in April, dropping to its lowest level since last summer. According to a senior economist at The Conference Board, “Consumers became more pessimistic about the outlook for both business conditions and labor markets.” Banking failures, higher borrowing costs, a government impasse over the debt ceiling, and a softening labor market have

On Friday, March 10, regulators took control of Silicon Valley Bank as a run on the bank unfolded. Two days later, regulators took control of a second lender, Signature Bank. With increasing anxiety, many investors are eyeing their portfolios for exposure to these and other regional banks. Rather than rummaging through your portfolio looking for

On Sunday, March 12 the Federal Deposit Insurance Corpora- tion (FDIC) announced it would ensure that all depositors at Silicon Valley Bank (ticker SVIB) would have access to their money the next day. This intervention marked the second largest bank failure in his- tory. A similar plan was rolled out for depositors of New York