Fed Moves
May 28, 2020
It has only been two months since the stock market hit its low point following the Covid-19 sell-off. Yet, if you are like me, it probably feels like a lifetime ago. The sell-off was rapid and indiscriminate. Not only did stocks fall quicker than ever before, bonds sold off as well. Then, when things were […]
Too Much Too Soon? Time to Hedge?
May 21, 2020
Eight weeks ago, the markets were in the pit of despair. Even Treasury bonds were trading with abnormalities. Since then, an incredible surge has happened. Yet the speed and magnitude of the recovery has led many to question the rally. After all, the bad news isn’t done yet (which we have touched on in recent […]
Inflation is Inevitable. Or is it?
May 14, 2020
When you hear the word “inflation”, it sounds like a tall tale your grandparents would tell you as a kid. “When I was your age, we had unicorns, dragons and inflation.” With the massive stimulus package recently passed by Congress due to the Coronavirus, the key question is, who will pay for all of this? […]
It’s Official – The Economic Recovery Ended
May 7, 2020
This week marked the end of an era, the growth era. In fact, the longest economic recovery of America’s history era. The recovery was officially pronounced dead with this week’s release of a GDP decline of -4.8% in the first quarter. This was not unexpected at all. We’ve been talking about the certainty around this […]
Bankruptcies for States and Municipalities? Perspectives on the Muni Market.
Municipal bonds, typically a worry-free part of a portfolio, have seen some price movement to the negative as part of the market volatility. That has subsided quite a bit, but new worries have crept up about municipalities with the talk of state bankruptcy potential. How should you think about municipal bonds going forward?
FDIC Insurance – Have You Maximized Your Coverage?
April 28, 2020
During the Great Depression, the Federal Deposit Insurance Corporation, or FDIC, was created to instill confidence in the banking system. On January 1, 1934, the first deposits were insured with a limit of $2,500. FDIC insurance is backed by the full faith and credit of the US government. How well do you know FDIC coverage? […]
It’s All Relative – Why Facts and Performance Disconnect
April 23, 2020
Here we are, now exactly one month since the market bottom. Will that be the final bottom? We can never know that for sure, but we do know the markets have put some distance between the bottom and where we are today. On March 23, the S&P 500 was at 2237, and today we stand […]
Money Lessons for Lawyers From the Ball Diamond
April 14, 2020
April is one of my favorite times of the year. Certainly not because of the lovely April weather here in Chicago, but because normally it means baseball season is getting into full swing. Unfortunately, the start of the baseball season has been pushed off a bit due to the impact of COVID-19, but it will […]
Markets Move Quickly
April 9, 2020
Market volatility is not gone. As you can see below, the volatility index (VIX), which helps quantify the level of volatility, is still at a very heightened level. Thankfully recent volatility has been of the good kind when markets go up: Risk & Reward Volatility, when it is this high, can lead to uneasy feelings […]
It Passes: The Coronavirus, Economic Stimulus, and the Market
March 27, 2020
Congress passed and President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which at $2.2 trillion (9.2% of GDP) is the largest fiscal stimulus package in U.S. history. By comparison, the Recovery Act of 2009 was $831 billion (5.7% of GDP at the time). Federal Reserve In addition to fiscal […]
One Week Later: Revisiting Thoughts on The Downturn
Markets have turned into a bear market and negative news keeps coming. We had a video last week touching on this, and here is an update on what’s happened since. As has been seen, markets can turn unpredictably and quickly. For more information on how the markets are being affected by the Coronavirus: Thoughts on […]
Rebalancing For the Future
March 26, 2020
Tax Loss Harvesting As both the news and market continue to be volatile, trading opportunities can present themselves. One area is tax-loss harvesting. This creates a tax asset that is there going forward by selling out of an investment at a taxable loss while reinvesting the proceeds at the same time to capture future market […]