Can the Economy Recover Without More Government Stimulus?

After last week's failed Senate vote on a new pandemic stimulus bill, negotiations between the White House and Congress appear to have stalled. Although the stock market has fully rebounded and the economy is recovering from the nationwide COVID-19 shutdown, not all consumers and businesses have fared equally well.

Time to Refinance Your Mortgage?

Mortgage refinancing is a topic that is coming up in almost every client meeting these days. Mortgage rates are dramatically lower than they were even 6 months ago. Not to mention mid to late 2018, when rates were at 4.5%-5.0% for well-qualified buyers (unfortunately, this was right when my wife and I bought our first home).

Is There Another Tech Bubble Bursting?

I could certainly be wrong, but I don't think there is a "Tech Bubble" nor is it bursting. The stock market has hit a serious rough patch with high-flying tech stocks facing pressure over the last few days. This is the first period of major volatility after the bear market crash earlier this year.

September 4, 2020 Weekly Market Recap

The market's August momentum bled into September to start the week, as the S&P 500 notched its 22nd record close of the year, but profit taking in the mega-caps and growth stocks ultimately took the major indices sharply lower by week's end.

August 28, 2020 Weekly Market Recap

This was the fifth straight weekly gain for the S&P 500 and Nasdaq Composite, which ended the week higher by 3.3% and 3.4%, respectively. Both set new record highs while the Dow Jones Industrial Average turned positive for the year with a 2.6% gain. The Russell 2000 increased 1.7%.

The Real Lesson of 2020: Fortitude

As long-term investors we understand that financial markets can behave unpredictably over the course of days, weeks and months. How an investor reacts to this short-term uncertainty can play a significant role in whether they achieve their financial objectives.

August 21, 2020 Weekly Market Recap

The S&P 500 added 0.7% this week while the Nasdaq continued its show of strength, rallying 2.7%. The Dow underperformed, ending the week unchanged.

5 Stocks To Rule Them All

Yes, the title and image are a corny reference to Lord of the Rings. So, despite the majority (about two-thirds) of the companies in the S&P 500 producing negative returns in 2020, the index overall has a positive year-to-date return. This is due, in part, to its top five holdings: Apple, Microsoft, Amazon, Alphabet, and Facebook.

Job Trends Matter More Than Scary Headlines

The loss of jobs is the main challenge of any economic downturn and the current recession is no exception. Even once businesses re-open, the economic recovery will struggle if workers aren't called back to factories and stores. Without steady paychecks, consumers will be hesitant to spend which further harms business profitability and hiring.

August 7, 2020 Weekly Market Recap

It was a strong week for stocks, as the S&P 500 closed higher in every session for a 2.5% weekly gain. The Russell 2000 rose 6.0%, the Dow Jones Industrial Average rose 3.8%, and the Nasdaq Composite rose 2.5%.

Worst GDP Decline in History

As August begins, the economic recovery is sending mixed signals. This is primarily due to the accelerating number of COVID-19 cases in many parts of the country which has sparked increased restrictions by governments and businesses. This means that many of the economic numbers will vary from region to region, following the overall trends of the disease.

Cash Is Comfortable, But Can Be Counterproductive

With all of the market-moving events of the past few years - from the global pandemic to trade wars and more - it's understandable that some investors may prefer the safety of cash. After all, a great deal of investing is behavioral and requires being comfortable with a certain level of risk. Portfolios returns are important but so is being able to sleep well at night.

July 24, 2020 Weekly Market Recap

The week started with a mega-cap rally that powered the Nasdaq Composite to new heights, but the rest of the week saw money flow out of these mega-cap stocks following earnings. The Nasdaq ended the week down 1.3% for its second straight weekly decline, followed by modest losses in the Dow Jones Industrial Average (-0.8%), S&P 500 (-0.3%), and Russell 2000 (-0.4%).

What’s Driving the Stock Market?

Once again, the stock market is back to where it started the year. At the moment, the S&P 500 is flat year-to-date and less than 5% below its all-time high in February. However, the strong performance of the overall market hides major differences between investment styles and sectors. I touched on this in my recent article, Is Value Investing Dead, Again? But I thought it was worth elaborating on the subject with some interesting charts.

July 17, 2020 Weekly Market Recap

This week saw the Nasdaq Composite (-1.1%) finally take a breather, as money flowed out of mega-cap technology stocks and into value-oriented cyclical stocks. The S&P 500 advanced 1.3%, trailing both the Dow Jones Industrial Average (+2.3%) and Russell 2000 (+3.6%) in gains this week.

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