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Wealth Watch Newsletter

The markets are complex.  In today’s data age, it’s easy to find more points of information.  However, it’s harder than ever to find out what parts of that information actually matter to you.  That’s the reason behind Wealth Watch.  At BDF, we want to make sure we are always thinking about what’s relevant and keeping you in the loop.

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Investing in a Zero Rate Environment

In March, as the country shut down in the face of a global pandemic, the U.S. Federal Reserve dropped the Federal Funds Rate to zero in an attempt to stem the tide of economic damage the pandemic was wreaking. On September 16th, Fed Chairman Powell indicated the Federal Reserve was prepared to keep rates at […]

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A Tale of Two Markets

What is the market? In the investment world and in the popular financial press, the term “market” is used fluidly. How often do we hear, “The market was up today,” or “Why was the market down today?” Is the market the Dow? The S&P 500? The Nasdaq? Or is it some even broader entity that […]

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Election 2020 and the Markets – What’s to Come?

The US Presidential election is heating up. The big question on investor’s minds is, what can we expect? The markets dislike uncertainty. Add a pandemic and recession on top of it, and it brings everything to a whole new level. What does this mean for the markets and your portfolio? Using history as a guide, […]

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The Dog Days of Summer

In ancient times, the “dog days” coincided with the heliacal (at sunrise) rising of Sirius (the dog star), and were believed to be times of drought, bad luck, and unrest, when people and dogs alike were driven mad by the extreme heat. Nowadays, the “dog days of summer,” typically refers to the period of particularly […]

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Time to Drop?

The last four months have been one for the record books.  We witnessed a historic stock market drop of -34% in only 40 days.  And then, just 77 days later, we saw a historic surge in the market of 48%.  This swift recovery was a welcome relief for investors.  However, at the same time, it […]

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Show Me the Earnings!

With all the debate about what type of recovery our economy will have, we’ve seen the markets clearly reflect one position: a V-shaped recovery for stocks. Since the 3/23/2020 bottom, no matter which portion of the market you look at, prices have gone up significantly. Now a lot of the attention is shifting to whether […]

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Fed Moves

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 […]

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Too Much Too Soon? Time to Hedge?

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 […]

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Inflation is Inevitable. Or is it?

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? […]

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It’s Official – The Economic Recovery Ended

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 […]

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It’s All Relative – Why Facts and Performance Disconnect

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 […]

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Markets Move Quickly

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 […]

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