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Higher Interest Rates Could Hammer Stocks
(Main Content/blog)
... more. But higher rates can also hurt stocks, by making it more expensive for businesses to borrow money. Costlier credit raises the cost of doing business, potentially lowering corporations' earnings ...
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Where to Invest Now? It's Tricky
(Main Content/blog)
... the proceeds, there's no obvious place to reinvest that money. High-quality bonds are unappealing because of their low yields--10-year Treasuries are yielding just 1.3%. And the possibility of rising ...
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When Will Stocks Rise Again?
(Main Content/blog)
... the rise of work-from-home companies like Zoom and Amazon, and more recently, the distribution of highly effective vaccines. But since early May, the market's momentum has stalled out: After hitting a ...
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How to Invest for Inflation
(Main Content/blog)
... First of all, inflation helps to explain why tech and other high-flying “growth” stocks have had a rough year. Rising inflation is seen as a headwind for stocks generally because it increases ...
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Rising Inflation and Interest Rates: What to Do
(Main Content/blog)
... spurring price inflation. In March, consumer prices rose .6%, their biggest gain since 2012. Accelerating inflation, meanwhile, is pushing long-term bond rates higher. Essentially, the bond market is ...
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The Stock Market Rotation is Here
(Main Content/blog)
... since the beginning of the month. But that doesn't mean the bull market is over. It simply appears that investors are transitioning from high-flying growth names to less-flashy—and cheaper—stocks that ...
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What to Know About the Short-Squeeze Trend
(Main Content/blog)
... so-called short squeezes. Short squeezes happen when a stock's price jumps higher, and traders who had bet that it would fall must scramble to buy more shares in order to avoid even greater losses. This ...
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What the Democrats' Win Means for Stocks
(Main Content/blog)
... expect a blue Washington to mean more stimulus spending and higher taxes. And while many on Wall Street had feared the prospect of higher corporate and household taxes, it appears that investors see the ...
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Use Tax Planning to Grow Wealth Faster
(Main Content/blog)
... want to take a distribution anyway. For example, if you expect much higher total income next year, taking money now means you might pay a lower rate on it than you would next year. Likewise, certain charitable ...
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Vaccine News Shakes Up the Market
(Main Content/blog)
The world has gotten some very welcome news lately: Two Covid-19 vaccines, one made by Moderna and another by Pfizer and BioNTech, have proven to be nearly 95% effective in blocking the virus. High-priority ...
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President Trump's Coronavirus Diagnosis: Market Impact
(Main Content/blog)
... a highly contagious airborne disease, and with the timeline of a vaccine unclear, social distancing will remain a key line of defense. A widely predicted second wave of infections in the fall would only ...
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Capital Gains Tax Hike a Possibility
(Main Content/blog)
... hands in Washington, steps such as selling highly appreciated shares might be appropriate. It's also quite possible that we will end up with divided government, where neither Democrats nor Republicans ...
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Raise Cash, Look for Opportunities
(Main Content/blog)
... looks interesting right now – and I don't mean Tesla, whose sky-high shares are up 126% this year. Traditional automakers like Ford, whose stock has lost a third of its value since January, are worth checking ...
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What to Do Now
(Main Content/blog)
The coronavirus has been tough for investors: We're now in a bear market, which is defined as a drop of at least 20% from a previous high. So you may be asking yourself what, if anything to do. In brief, ...
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Bond Yields Are Low – So Where Do You Find Income?
(Main Content/blog)
... the rate of inflation. As my clients' bonds mature, I'm advising them to consider some other opportunities with more attractive yields. One is an old standby – high-quality dividend-paying stocks. I ...
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Should You Invest in Real Estate?
(Main Content/blog)
... rates and high loan-to-value percentages against real estate. And that means you can get a lot of exposure with relatively little up-front cash. You could finance $400,000 or a $500,000 property, for ...
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The Biggest Mistakes Investors Make
(Main Content/blog)
... a large position and take profits. But that turns to disappointment when they are hit with a big capital gains tax, and when the additional income pushes them into a higher tax bracket. There are ways ...
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The Investment Outlook Is Changing
(Main Content/blog)
... helped stocks soar, increasing their price to earnings ratios to expensive territory. Those high prices, along with the Fed's interest-rate hikes and stimulus drawdown, helped to trigger the big selloff ...
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A Smart Investing Move to Start the Year
(Main Content/blog)
... better, and you'll own enough of them to mitigate the stock losses. And vice-versa. Hedging against big portfolio losses in this way is s proven way to earn higher returns over time. By rebalancing, ...
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Understanding What Drives the Market
(Main Content/blog)
... soaring. More important for most investors, though, are long-term catalysts. A healthy economy like the current one is a powerful catalyst. It can create higher bond yields and push stocks consistently ...